In some cases in Korean courts, it is advisable to obtain evidence held in a foreign jurisdiction for use in a Korean civil proceeding in a Korean court. The need often assists in establishing damages, course of dealings or the basis of liability. Additionally, in cases in non-Korean courts, evidence held in Korea may be useful in these foreign court proceedings for similar reasons. The Korean Act on International Judicial Mutual Assistance in Civil Matters sets out specific requirements that
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Enforcement of Arbitral Awards in Korean Courts: Arbitration Law Basics
After an arbitration panel outside of Korea renders an arbitral award against a Korean company or individual, typically, if the non-prevailing party lacks assets outside of Korea or the prevailing party needs to enjoin acts in Korea, the prevailing party chooses to enforce the arbitration award in Korea. Enforcement is not as easy as just giving arbitral awards to non-prevailing Korean parties. For enforcement of foreign judgments in Korean courts please see: Enforcement of Foreign Judgments in Korean Courts. When
Continue readingBasics to Successfully Outsourcing Production of your Product to Korea: Korea OEM Basics
So you have decided to outsource the manufacturing of your products to Korea. Good choice in choosing quality-focused Korea over quantity-focused China, but don’t make the bad choice of not considering basic basic legal due diligence necessary to protect your good name, technology, brand and the future of your business. If you plan on just dealing through a purchase order (PO) in Korea, you are heading down a path that may lead to a kick in the behind. The recession hit
Continue readingDuty to Report Product Defects in Korea
Korean law emphasizes the obligations a seller of goods has to a buyer in the event that a good that the seller manufactures, imports, sells, or supplies is defective. The product defect reporting obligations are extensive and not reporting may have significant impact on your business in Korea. This Duty to Report is codified, in part, under Korea’s Framework Act on Consumers and Framework Act on Product Safety. This post is, only, intended as a short introduction to these acts. Additional
Continue readingBithump Crypto-Currency Exchange in Korea to Ban Trading in 11 Countries
With the Korean government auditing Korean Alt Currency exchanges and the Korean government looking at the regulation of crypto-currency, a major exchange, in Korea, has banned the trading on the exchange from Iran, Syria, Iraq, Ethiopia, Serbia, Sri Lanka, Trinidad and Tobago, Tunisia, Vanuatu, and Yemen. These aforementioned nations are on the Financial Action Task Force’s Non-Cooperative Countries or Territories black list. This Task Force, an intergovernmental agency, has deemed these countries to not have sufficient legal procedures in place to
Continue readingRestrictive Covenants in Korean Employment Agreements and the Lawyers in Korea that Draft Them
The form agreements dished out by some Korean “legal experts” on employment law at many of the “ubiquitous” Korean “law firms” has led me to write, again, on this issue. If a lawyer gives you a form labor agreement/employment separation agreement that does not consider the below, no need to fret, you are not alone – just move on. Most firms and attorneys in Korea are providing work product that is much lower in quality than the mediocre firms overseas
Continue readingArbitration against Korean Government Agencies in Korea: Korean Arbitration Law Basics.
The Korean National Assembly amended the Act on Contract to Which the State is a Party, partially, on December 1, 2017. The amendment was intended to encourage the Korean Government to arbitrate more disputes with parties that have contracted with the Korean Government. To date, few cases have been resolved via Arbitration when disputes occur between the Korean Government and parties to a contract with the Korean Government. The reason stems, mainly, from realities within many Korean-based law firms, within
Continue readingTax Liability of Controlling Shareholders in a Korean Company: Tax Law Updates
Under Article 39 of Korea’s Framework Act on National Taxes, unpaid taxes owed to the Korean government are enforceable against certain “ologopolistic” shareholders of respective debtor company’s shareholder. This secondary liability of shareholders is codified within the Framework Act on National Taxation. Article 39 of the Framework Act on National Taxes, specifically, notes that: “Where the property of a corporation is not enough to pay national taxes, additional dues and disposition fees for arrears imposed upon or to be paid
Continue readingPrivity of Contract in Franchise Agreements in Korea: Korean Franchise Law Updates
Normally, in Korea, a contract/agreement cannot confer rights nor impose obligations upon a person who is no a party to the contract/agreement. One interesting case, in franchise law, applied this principle to the benefit of the franchisor and the detriment to a supplier. A Supplier delivered food through a Distributor to a Franchisee based on a franchisee requirement iterated in a franchise agreement with a franchisor. The case brings to light, also, the potential liability of franchisors for acts of Korean franchisees. The
Continue readingDoes a Korean court have the power to issue a preliminary attachment on Korean assets stemming from a foreign court claim?
A situation often arises when a plaintiff is suing a Korean debtor in a foreign court and the non-Korean plaintiff wishes to attach the Korean-based assets of the Korean defendant in Korea. Typically, the plaintiff found no assets of the defendant abroad and fears the disposal of the assets in Korea. Thus, typically, the plaintiff wishes to file to a Korean court a request for a provisional attachment of the assets of the prospective defendant. While, provisional attachments of assets of Korean
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