Can an international franchisor force a local Korean franchise to cut the prices of a product via a sales event? This issue was addressed by the Korean Supreme Court in 2003Du7484. In this Supreme Court of Korea case, a franchisor, among other things, mandated via the franchise agreement for a franchisee to hold sales events. The franchise agreement did not specify the specific details of the sales events. The franchisor elected to utilize the clause in the franchise agreement to
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A Franchisor may be Unable to Prosecute a Franchisee for Embezzlement in Korea
Article 355 of Korea’s Criminal Act defines embezzlement as: “a person who, having the custody of another’s property, embezzles or refuses to return the property shall be punished by imprisonment for not more than five years or a fine not exceeding fifteen million won.” In a landmark case in Korea’s Franchise Jurisprudence, the Supreme Court ruled a franchisee may not be held criminally liable for embezzlement for “arbitrary spending of funds” and not paying franchise fees under the franchise agreement,
Continue readingSearching Trademark & Service Marks in Korea: Register your Trademarks/Service Marks Prior to Doing Business in Korea
Prior to marketing products, services or a business in Korea do a thorough search for like trademarks/service marks in Korea, then, have your trademarks/service marks registered in Korea – if you don’t want the added cost of litigating a matter at a Korean court. If you have patents, don’t forget to, also, register your patents and other intellectual property. Your U.S. and E.U. trademark, service mark and patent filings are not enough. These “international filings” only gives you a grace
Continue readingRegistration of a Korean Franchise Disclosure Document under Korea’s Revised Franchise Law
We are happy to report that we have, recently, succeeded in registering the disclosure document of a franchise in Korea. Our client, a leading U.S. franchise, came to us hoping to take advantage of Korea’s dynamic franchise market. We have an active franchise and distribution law practice team lead by a retired Korean court judge and little ole me. When Korea’s franchise law was amended in 2014, there were many uncertainties about how the Fair Trade Commission of Korea would
Continue readingChanges to Korea’s Franchise Law May Lead to an Increased Potential for Criminal Sanctions: Franchise Law Basics
The Fair Transactions in Franchise Business Act of Korea was amended on August 13, 2013 and became effective on August 14, 2014. The, facial, reason for the change in the Act is noted in an announcement by the Korean government on the reason for the amendment. The facial reason for the amendment shows the rationale for imposing criminal sanctions for acts that don’t constitute “crimes.” Korean Government’s Stated Reason for the Amendment: “Recently, there is a rapid and growing tendency
Continue readingWeekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 28, 2014
Weekly Korean Legal News From International Law Firm – IPG Legal for the Week of July 28, 2014Korean Legal News Reported by the Media on the Week of July 28, 2014 IMC may blacklist Korean builders over collusion Prosecutors continue probe into ferry owner’s driver Foreign workers upset by severance pay formula Restructuring urgent for big Korean companies Relocation of USFK Headquarters to Go Ahead Most Recent Posts from the Korean Law Blog This slot is reserved for the new
Continue readingKorean Franchise Law Basics for Franchisors
Over the next week couple of weeks we will be posting articles on the updated Korean Franchise Law. The articles will be listed below. The articles will address the major issues facing franchisors in the Korean market. If you have any topics that interest you or will interest other readers – please advise. Articles on the Basics of Korean Franchise Law: Distribution Agreements in Korea: Crawl before you Walk Korean Small Business Partnerships/Joint Ventures: Pubs, Distributors, Exporters, Boutiques, Franchises and
Continue readingStatus of Interns Under the Korean Labor Standards Act: Employees Entitled to Severance/Minimum Wage?
Interns in Korea may be considered Employees under the Korean Labor Standards Act, thus, entitling the interns to minimum wage, severance and the numerous other protections and benefits under the Act. The matter is having an impact on franchises, entertainment companies, and other SMEs. The, incredibly vague, Employment & Labor Ministry Guideline 826 (April 7, 2009) notes, in part, that: If a person is considered an employee under the Labor Standards Act shall be determined by considering the subordinate
Continue readingSean Hayes Attends American Bar Association’s Forum on Franchising
IPG has one of the leading practices in Franchise and Distribution in Asia. Sean Hayes will attend the American Bar Association’s Forum on Franchising. From the event’s brochure: Welcome to the 36th Annual forum on Franchising at the Rosen Shingle Creek Resort in Orlando, Florida on October 16-18, 2013. Starting on Wednesday, October 16, highly-experienced franchise attorneys will present Fundamentals of Franchising, the finest course available on the basics of franchise law. Two additional five-hour intensive programs will also be
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