Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 14, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal For the Week of July 14, 2014.Korean Legal News Reported by the Media on the Week of July 14, 2014 LG outpaces Samsung in UHD TV panel market in May: data Hana Bank set for merger with KEB Economists Doubt Korea Can Return to Solid Growth Line to Be Listed on Tokyo Stock Exchange Korea ranks third in e-trade readiness Most Recent Posts from the Korean Law Blog Opportunities

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Opportunities in Korea’s Growing Tuning & Performance Modification Industry for Foreign Companies

Korea has been behind its Asian neighbors in its love for modifying cars, partially, because of Korea draconian laws related to car modifications.  Police, regularly, impose fines on those that modify the look and performance of cars. The tuning industry in Korea is estimated to be around USD 500mil, while Japan tops in at over USD 14billion.  We suspect this will change soon. The good news for foreign aftermarket parts manufacturers, looking to enter the Korean market, is that the

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Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 7, 2014

Weekly Korean Legal News From International Law Firm – IPG Legal For the Week of July 7, 2014Korean Legal News Reported by the Media on the Week of July 7, 2014 Science Ministry to Introduce Laws for Better Mobile Service Plans Validity of Financial Holding Firms in Question Bank of Korea Hints at Rate Cut Pantech Sinking into Deeper Liquidity Crisis Samsung Chief Marks 2 Months in Hospital Most Recent Posts from the Korean Law Blog Is Samsung Doomed? No

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Foreign Account Tax Compliance Act (FACTA) in Korea

From this month, the Korea Financial Services Commission will require banks to request all to disclose if they are U.S. nationals or U.S. permanent residents when opening a bank account in Korea. Most U.S. taxpayers residing abroad must report, under U.S. law, the details of all foreign financial accounts held and controlled by the taxpayer under FACTA and also Foreign Bank and Financial Accounts (FBAR). Get the picture?  The IRS is watching and now has more tools to watch. More

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Korean Immigration Law’s 20% Rule Challenged

Increased direct foreign investment to Korea is, facially, Park Gun Hye’s Administration’s top priority. However, according to the Korea Herald, it seems like the Korean bureaucracy is not following the Park Administration. The Korea Herald reported that foreign companies have increased complainants about the current Korean immigration law as exemplified in at a government-organized forum in Seoul last week.   The complaints have come, in part, because “[u]nder Korean immigration regulations, companies are allowed to employ a workforce with up

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Finding a Distributor or Agent to Sell/Market Your Products in the South Korean Market

Finding a quality distributor for your products is not an easy task in Korea.  We regrettably have dealt with numerous issues related to distributors not paying invoices, misrepresenting products, violating intellectual property rights and even selling fake products alongside the real imported products. The major reason for these occurrences is the client to quickly rushing into “opportunities” without vetting out a distributor and poorly drafted distributions agreements. Many distributors in Korea are fantastic, others are mere order processors and some

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Samsung Threatens Suit Over Reports of Chairman’s Condition

Irked by continuing reports of chairman Lee Kun-hee’s failing health, the Samsung Group has threatened legal action against media outlets carrying the stories fueling the speculation.  Commenting on this possibility, a Samsung spokesman stated that “we’ve repeatedly requested media with unsubstantiated reports for corrections. If they do not comply, we may file suit.” Rumors of the chairman’s health have been widespread since he suffered a heart attack earlier this month. One report this past week had the Samsung chairman dying

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Verdict in latest Samsung/Apple Courtroom Battle

A U.S. Federal Court jury has resolved the latest legal dispute between Apple and Samsung, ruling that both companies wrongfully infringed some of the other’s patents while absolving each of liability in other patent infringement claims. Very notably, the jury awarded Apple $119.6 million in damages, much less than the $930 million awarded the two tech-giant’s earlier 2012 case, and nowhere near the $2.2 billion Apple had been seeking in this trial.  All of this, of course, is pending appeal.

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Korean Derivative Suit Law

Much like the United States, Korean law permits shareholders of a company to file a lawsuit against the company’s directors/third parties, on behalf of the company, when directors’/third parties’ wrongful acts result in losses or may later result in losses. Please see: Suing Korean Directors for Losses to Korean Companies for more information on this issue. In this type of legal action in Korea, known, often, as a derivative suit, the plaintiff-shareholders do not bring a claim as themselves as

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Guide to Establishing a Company in Korea: Branch vs. Office; FIPA vs. FETA

The establishment of a foreign enterprise in Korea is governed, inter alia, by the Foreign Investment Promotion Act and/or the Foreign Exchange Trade Act. Formation of a local corporation of a private business in Korea is governed by the Foreign Investment Promotion Act of Korea.  The establishment of a branch or office is governed by the Foreign Exchange Act of Korea.  A branch or office, in Korea, is considered a  domestic branch of a foreign corporation under Korea law. FOREIGN-CAPITAL

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