Starting a Company in Korea: Establishing a Foreign Capital-Invested Korean Company, Branch or Liaison Office

Korea, for many businesses, is an excellent market to enter.  We assist numerous franchisers, tech companies, chemical companies, oil & gas companies, automotive suppliers, defense companies and basic manufacturing companies on compliance and contentious issues related to their business in Korea.  We, also, assist entrepreneurial individuals in establishing and doing business in Korea. To establish a company in Korea, there are, in short, three legal manners for a foreign company or individual to do business in the Korean Market.  A

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English-speaking Korean lawyers and International Lawyers at International Law Firm in Korea discussing issues of Korean Law

IPG Legal is a leading client-focused international law firm with offices in Korea that is, often, selected over the ubiquitous Korean Law Firms when success is essential and success depends on nuanced street-smart advice, proactive  and unconflicted representation. Our attorneys are, intentionally. different from the crowd.  From our retired judge partners to our junior associates, we are all trained with an intense focus on client success, lawyer proactivity, and to understand the nexus between your commercial and legal needs. Our attorneys

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Korea to Rule if Pokémon GO Can Be Released Nationally in Korea

Korea awaits a decision from the government that will effect the national release of the wildly-popular Pokémon GO app. We recently discussed the legal ramification in America that come with use of augmented reality games like Pokémon GO on our sister blog, The New York Law Blog.  Augmented reality games involve live direct or indirect views of a physical, real-world environment whose elements are augmented (or supplemented) by computer-generated sensory input such as sound, video, graphics or GPS data.  In

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Starting a Business in South Korea: Top Posts from the Korean Law Blog

We write many posts on the Korean Law Blog on entering the Korean market.  However, the list is getting so large that many people have requested that we make a list of the posts that we feel are the most useful for those entering the Korean Market.  Thus, here we go.  More posts will be added to this list as they are written: Selling to Korea via Distributors, Agents & other Non-Direct Sales Channels Joint Venture/Partnerships in South Korea Test

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So you Want to Start a Partnership/Joint Venture in Korea?

Business, in Korea, can be profitable and enjoyable.  However, business in Korea can, also, lead you to a jail cell and premature balding.  One key to success, in Korea, is to get the Korean joint venture structured by a professional from the start of the relationship with your joint venture partner(s).  Don’t just download a joint venture agreement or partnership agreement from the internet.  Vet your partner and, also, learn the expectations of your partner. We know you have “limited

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Five Businesses to Avoid in Korea

We get a number of hare-brained foreigners that have requested advice on the opening of some peculiar businesses.  Here are a few businesses that we do not advise opening in Korea.  Farming. Prohibited for foreigners and foreign companies.  For example, the growing of rice and barley is prohibited for foreigners.  The farmers don’t even want to be in this business.  Stay away. Publishing & Broadcasting.  Prohibited for foreigners to own 50% or more of a publishing company and totally prohibited

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Credit Rating Agencies in Korea: Due Diligence of Your Supplier, Franchisee, Joint Venture Partner & Distributors

Korea has established four credit rating agencies.  The four agencies are: National Information & Credit Evaluation (NICE); Korea Investor Services (KIS); Korea Ratings (KR); and Seoul Credit Rating & Information (SCRI). Some reports provided by these rating agencies are provided in English.  However, many of the English reports are not complete.  Thus, it is advisable to make sure if you have an English version of a report that it is same as the Korean version of the report. Additionally, it

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Starting a Business in South Korea

We wrote many posts on this Korean Law Blog on entering the Korean market.  However, the list is getting so large that many people have requested that we make a list of the posts that we feel are the most useful for those entering the Korean Market.  Thus, here we go.  More posts will be added to this list. Selling to Korea via Distributors, Agents & other Non-Direct Sales Channels Joint Venture/Partnerships in South Korea Test the Korean Waters and

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Establishing a Company in Korea: New Korean Corporate Forms Available under Revised Korean Code

According to the Ministry of Justice, over 95% of corporations in Korea are formed as a Chushik Hoesa, while the Korean Commercial Code (KCC), at this time, defines four different types of Korean potential business entities.  In order to allow a little more flexibility, two new business forms have been created.  The recent amendment to the Korea Commercial Code, that will be promulgated from April of 2012, introduces two new forms of Korean business entities: Hapja Johap (LLP) Yuhan Chaekim Hoesa  (LLC) We expect that 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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Do you Sell Buggy Whips? Succeeding in a Competitive Korean Market

In many ways, the 19th century continued until the outbreak of World War I. The 20th century ended with the fall of Lehman Brothers.  In confusing times such as these, it is natural for people to draw parallels as a way to understand current events surrounding us. They hope to gain some insight on an uncertain future. Here are some examples: A recent issue of BusinessWeek suggested that America of 2009 may learn from Japan of the 1990s. In Korea,

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Business Opportunities in Korea for Entertainment Companies

I just read a blog post by my friends over at the China Law Blog that motivated me to write the following post.  Korea is an excellent testing ground to determine the feasibility of your business for other Asian markets such as China or Japan.  The country has, also, proven more profitable, for many businesses, than the often too hard to catch “Chinese Middle Class.” The following is a list of some industries that are successful in Korea: 1.  Franchises. 

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Negotiating a Joint Venture Agreement in Korea: Shareholder Agreements in Korea

We recently had a client with a myriad of joint venture issues.  The issues were caused, primarily, because of the joint venture agreement being drafted, only, in English without a review my client or a competent lawyer and most of the negotiations occuring through a translator.   For example, the American company believed that the joint venture agreement mandated that all disputes were to be handled via arbitration in Hong Kong.  The American company SEVP noted this to the interpreter as

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12 New Items Prohibited from Export from Korea by Overflow of Core National Technology Law of Korea

The following is the list of the 12 new items that have been newly prohibited from export from Korea without an export license/acceptance of report of export from the Ministry of Knowledge Technology of Korea.  The export prohibition was implemented by the Overflow of Core National Technology Law of Korea.   The prohibition takes affect from the beginning of 2011. Electric /ElectronicProducts Foundry process & device technologies of less than 31 nms. Design/process/manufacturing technologies of AMOLED panels (except for module assembly

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Nine Musts for a Succesful License Agreement in Korea

License Agreements in Korea are too often, simply, a spinning of license agreements used in the West.  Your foreign license agreement, in most cases, is not adequate for your needs in Korea.  Our 9 Musts before Engaging in a License Arrangement in Korea 1.  Due Diligence Say it three times and read my posts:  Doing Business in Korea:  Due Diligence, Agreements, Attorneys and Street Smarts 2.  Royalty Clause  Include in your license agreement a royalty clause.  The clause should detail,

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Finding a Korean Distributor: Top 10 Things to Know Before you Jump into Bed with an Agent in Korea

Too often we deal with clients looking to collect on unpaid invoices to distributors/customers in Korea and resolve IP and other disputes between these distributors/customers because of clients rushing into relationships without vetting out the anticipated distributor or having a very poorly drafted distribution agreement. Many distributors in Korea are fantastic, while, others are nothing more than order processors -they, simply can’t or don’t want to sell.   Additionally, in these tough economic times, too many companies, in Korea, are struggling

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Is K-Pop Sustainable? Tom Coyner by IPG’s Senior Adviser

For the past five years I have monitored with detached interest how Hallyu, or the Korean Wave has grown from a local pop phenomenon into an international trend. There is no denying it. The Korean Wave is huge. But by living in Korea, one could easily get the impression that the Korean Wave has taken the entire planet by storm and there is no telling where Korean culture will make its next global impact. But is this really the case?

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Sales of Imported Cars Increase in Korea: American Cars Still Not Popular in Korea

The sale of imported cars increased over 16% percent in August of 2012 when compared to August of 2011 in Korea.  The increase is attributed to the aggressive sales promotions by local dealers and increased interest in luxury foreign cars.  The free trade agreements may have, also, made more mid-income consumers consider purchasing a foreign cars. The U.S. (7.1% of foreign car market in August) is still lagging way behind European (77.9%) and Japanese (15%) competitors even, though, American car

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Why do Some Foreign Companies Fail and Some Companies Succeed in Korea?

The Chosun Ilbo posted an interesting article on why some multinational companies fail in the Korean market.  The article notes, in part, that: Struggling in Korea. Swiss multinational Nestle has achieved stellar performance in global sales of its mainstay coffee and powdered milk. Not so in Korea, where the market for coffee mix is worth around W1.3 trillion (US$1=W1,128). Nestle entered the Korean market in the 1980s with its Taster’s Choice brand of instant coffee and maintained the No. 2

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Korea’s GDP Per Capital Reaches USD 30,000 PPP

Hyundai Research Institute has announced in its report “Nominal Income 20,000 (U.S.) Dollars, Standard of Living 30,000 Dollars,” that “Korea’s per-capita GDP without considering price levels was 22,778 dollars last year, but its per-capita GDP based on purchasing power amounted to 31,714 dollars.” Thus, the report notes that because of the lower cost of living in Korea compared to other industrial nations, Korea standard of living is on par with the most developed nations in the world.   From my perspective,

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