Korean Immigration Law is an evolving area of law in South Korea that often changes with the change of governments. IPG legal many business and individual clients that run afoul or wish not to run afoul of Korea’s Immigration Laws. In worse-case scenarios, you can be deported, have an entry ban imposed, or be sent to a detention center or receive, even, a jail sentence. But, please know, for most individuals pathways exist to secure your visa status legally. IPG
Continue readingCategory: Korean Corporate and Compliance
Mergers & Acquisitions in The Korean E-Commerce Market: Opportunities for Foreign Niche E-Commerce Sites
First-generation Korean e-commerce enterprises are currently working to integrate recently acquired businesses and create new business prospects in the fiercely competitive E-commerce market of Korea. Last month, Korea Center, the owner of Enuri.com, the nation’s oldest online shopping mall and Danawa, another local e-commerce business, merged. In order to increase their ability to compete in the market, the two businesses intend to operate their e-commerce platforms independently while eventually building an integrated system forthe analysis of online shopping data. The
Continue readingKorean Small Business Partnerships/Joint Venture Startups
Starting a small business in Korea can be enjoyable and profitable if you get the business on the right track from the start. Too often we see those with “limited funds” (we all have limited funds -even multinationals have limited funds) choosing to forgo having the deals structured by a professional and just downloading a “partnership” agreement off the internet. Avoid the headaches and the costs in the future and structure all right from the start. I have learned from
Continue readingWhat Constitutes an “Employee” under Korean Law?
Who is an Employee/Worker under Korean Law with the Rights and Protections under Korean Labor Standards Acts and Related Laws & Regulations? The definition of an employee in Korea is a topic that had filled books. The following is a brief introduction to an issue that IPG Legal litigates for foreign employees of Korean companies and for foreign companies doing business in Korea. IPG Legal is the go to law firm for expats and foreign companies doing business in Korea
Continue readingDefinition of “Ordinary Wage” in Korea: Korean Employment & Labor Law Basics
The courts of the Republic of Korea, for years, has struggled to find a consistent interpretation of an “Ordinary Wage.” The definition of Ordinary Wage, under Korean Law, was clarified by the Korean Supreme Court in two decisions handed down on December 18, 2013. The calculation of Ordinary Wages is important, since the calculation is utilized to calculate statutory entitlements, and thus has an impact on the aggregate amount of contributions necessary to be paid to employees. For example, according
Continue readingMaterial Omissions in Korean Franchise Disclosure Documents in South Korea
In April of 2015, the Supreme Court of Korea ruled that under Article 4; Article (9)(1); and Article 41(1) of the prior version of the Fair Transactions in Franchise Business Act (“Franchise Act”) damages may be obtained, from a franchisor, for all material omissions (Supreme Court 2014 DA 84824,84831, April 9, 2015) within Korean Franchise Disclosure Documents. Thus, we advise all franchises in Korea to review and update their franchise agreements, thoroughly, on a yearly basis. Damages for Material Omissions
Continue readingDismissal of Employees in Korea: Supreme Court of Korea Precedent
The Korean Supreme Court ruled, in March of 2018, that a company may terminate employees for one incident of employee gambling. The case is a precedent that may make it easier for employees to terminate employees that violate certain company rules without the need to provide notification and an opportunity to improve. The case stems from the termination of bus drivers that were caught on one occasion gambling prior to driving buses. The lower courts ruled, in short, that gambling
Continue readingRequire a Injunction in a Korean Court Against your Former Korean Franchisee for Competing Against your New Korean Franchisee?
Under the Fair Franchise Transactions Act of Korea (“Franchise Act”), a franchisee has the right, under Korean Law, to request the renewal of a Korean franchise agreement after ten years of successful operation of a franchise. In some cases this reality leads to a Former Franchisee continuing the franchise in competition with your new franchisee. We wrote about termination of a Korean franchise in other articles including: Termination of a Franchise in Korea. Also, you can view other articles on
Continue readingWrongful Termination in South Korea
South Korea is not an “at-will” employment country, which means that an employer may not dismiss an employee for any reason nor without warning or notice. Under the Korean Labor Standard Act, an employer who has five or more employees may not dismiss or suspend from work any of its employee without “justifiable cause.” And even the employer can establish justifiable cause for dismissal, in Korea, the employer is still required to give a minimum of 30-days advance notice (or
Continue readingKorean Independent Contractor Risks and Obligations under Korea LSA Speech to Amcham Korea
During a recent speech the head of the Korean Labor & Employment Law Team and I gave to the American Chamber of Commerce in Korea, a few interesting topics came up that seemed to be of particular interest to participants. For the Power Point of the presentation click HERE. Factors Courts use to Determine if an Individual is an Employee and Thus Obligated to Provide Severance and Employment Security etc. Under the Korea Labor Standards Act (LSA). These following factors
Continue readingExecution of Stock Options in Korean Corporations under Korean Commercial Code
Stock options, in Korea, are often provided to senior foreign and domestic employees of companies in Korea. For stock options, in non-listed/non-public companies in Korea, to be exercisable by employees in Korea (thus a valid option) the option must be approved, in most cases, at a general shareholders meeting of the Korean company. Another article that may be of interest can be found at: Granting & Exercising Stock Options in Korea. The articles of incorporation should be amended or should
Continue readingProtecting your Intellectual Property Rights in Korea: Avoid “Trying Different Things & Smoking Funny Things”
A popular song regularly played on the radio proclaims that in the summer of 1989 the songwriter, Kid Rock, was “trying different things and smoking funny things.” If you have any exposure to the Korean market, do your business a favor and don’t be like the songwriter. All business with any exposure to the Korean market must have a plan in place to protect their intellectual property. Thus, for the sake of your company, at a bare minimum, you should
Continue readingAudit Proof your Independent Contractor Expenses
I just read a great post on an even better blog entitled the New York Small Business Law Blog. The blog post – Tips on Making your Independent Contractors Audit Proof – notes that the feds are increasing their efforts to crack down on misclassified independent contractors. They advise the attorney gave on how to avoid the scrutiny of the government would have also been useful for a client of ours that ran into an issue with the Korean National Tax Service and the Ministry
Continue readingKorea’s Fairness in Subcontracting Transactions Act Amendments of July 2021
The Korean National Assembly passed a bill in July of 2021 that amends the Fairness in Subcontracting Transactions Act (“Subcontracting Act”). The Act makes major changes with regard to discovery in litigation and aims to protect the intellectual property/confidential data/technical data (“Technical Data”) of subcontractors from poaching by prime contractors. For another article on Korea’s Subcontracting Act please see: Fair Transactions in Subcontracting Act of Korea: So Buyer Beware or Simply Avoid the Risk and Buy the Seller. 2021 Amendments
Continue readingDebtor’s Liability to New Owner after Transfer of Business and Trade Name
A developer recently contacted IPG Legal concerning a dispute with a supplier of building materials. The developer purchased building materials from a supplier with payment to be forwarded 30-days after receipt of the materials. This is a common practice when a supplier has a long-term relationship with a developer, provides a consistent flow of supplies to a developer, and the developer is solvent. Here comes the problem. The supplier was sold and the business and trade name was transferred to
Continue readingThe Ten Commandments of Labor Relations in South Korea: Korean Human Resources Basics
Korea has one of the most capricious and least efficient labor forces in the world (which the exception of a few industries) and China is catching up with Korea very fast. Vietnam, Cambodia, Laos, Malaysia, Indonesia and the Philippines will soon follow. The fault is not only on the employees, but on the employers. Korean companies have departed for greener fields in China to discover that the fields are not as green as originally imagined. Many of these same companies,
Continue readingKorean Prosecutors & Police Powers under Amended Criminal Procedure Law
One of the most substantial changes in the powers between the Prosecutors’ Office and Police Office was enacted by the Korean National Assembly through amendments to the Korean Criminal Procedure Act and Prosecutors’ Office Act. These Amendments were made to the Criminal Procedure Act of Korea and the Prosecutors’ Office Act of Korea that shall take effect in 2021. The Amendment reduce the power of the Korean Prosecutions to initiate investigations in certain types of cases, while expanding the powers
Continue readingAlternative Legal Fee Arrangements at Korean-based Law Firms: Limited Scope Representation Explained
Many Korean law firms have been willing to work in relationships based on a non-time charge flat-fee or contingency basis for Korean clients. However, many of these law firms in Korea have been unwilling to work on alternative fee arrangements with non-Korean clients, because of, among other things, the requirement to represent the client in a far different manner than that of a Korean client and, also, reduced competition in the foreign-client market, because of the reality that only a
Continue readingInternational Arbitrations in Korea under the IBA Rules
Procedural Arbitration rules are key to the efficient and effective adjudication of arbitration disputes in Korea and, also, worldwide. These arbitration rules govern and set out the framework for the arbitration process. Evidence gathering and presentation are important aspects of the above procedure, and yet, institutional and ad hoc rules that provide arbitration guidelines on other matters such as the appointment of arbitrators and the nature of award and costs are, usually, silent on this point. Advantages of such a
Continue readingWhistleblower Protections in Korea Expanded through revised Whistleblower Protection Act
Korea’s Whistleblower Protection Act is, often, criticized for having a too limited scope, since it narrowly covered specific iterated Korean government statutes. Thus, many in Korea have pushed for an expansion of the law to cover a more broad range of Korean laws. With this reality in mind, the Korean Whistleblower Protection Act was expanded to cover 467 statutes up from the prior 284 statutes. The amendment was effective since November of 2020. This Amendment led to many Korean government
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