The Koreans are Coming: Hana Financial to Acquire Majority Share in U.S. Broadway National Bank

Hana Financial has announced that it will purchase 71% of Broadway National Bank’s holding company.  Broadway National Bank is a New York-based bank that tailors its services to Korean clients. Hana Financial is one of Korea’s largest retail and investment banks.  The main purpose of the acquisition is to expand Hana’s retail operations to the U.S. market.__________Sean Hayes, IPG’s Co-Chair of the Korea Practice Team, may be contacted at: SeanHayes@ipglegal.com

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Korean Investment in Asia and the West is on the Decline

A few news sources, including Law Times, have announced the financial crisis is curtailing Korean company’s investments abroad. Kumho Tire has announced that it will suspend the building of a tire plant in Georgia. The project was scheduled to be completed in the second half of 2009. Kia motors will likely not go forward with a $1 billion assembly plant in Georgia. Posco Steel planed to continue its plans of building a $12 billion mill in India and a $5million

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Lack of Office Space in Seoul

Lack of Office Space in Seoul By Sean Hayes (Korea Times 11-26-2008) Korea, in this global economic turmoil, must become a more attractive location for foreign investors. The answer to attracting more foreign capital is obviously to improve the overall investment climate. Along with the ubiquitous mention of tax reductions, regulatory revisions, and an improved living environment; Korea also must reduce expenses in doing business in the country including access to affordable office space. The access to affordable office space

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REITS in Korea: Real Estate Investment Trust Law Amended

REITS in Korea: Real Estate Investment Trust Law AmendedLaw Update by Sean Hayes The Real Estate Investment Trust Act was amended in June of 2007 and the law will become effective in October of 2007. The law was revised in order to encourage the establishment of more REITs. The previous law was criticized for being too complicated and for giving too much discretion to the Ministry of Construction and Transportation (MOCT). Elements of the New Korean REIT Law:1. Approval of

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REAL ESTATE INVESTMENT COMPANY ACT (old)

REAL ESTATE INVESTMENT COMPANY ACT (Amended as of January 14, 2005)(New Law in effect on Oct, 2007)CHAPTER I GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Act is to contribute to the development of national economy by prescribing the matters concerning the establishment of a real estate investment company, the management methods of assets thereof and the protection of investors therein to provide citizens at large with more opportunities to invest in the real estate as well as to

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Korean Foreigner’s land Aquisition Act (Enforcement Decree)

ENFORCEMENT DECREE OF THE FOREIGNER’S LAND ACQUISITION ACT INTRODUCTION Details of Enactment and Amendment – Enactment: This Decree was enacted to prescribe matters delegated by the Act on the Acquisition of Lands by Foreigners and their Management (Act No. 4726, Jan. 7, 1994) such as the detailed standards for land for actual use that may be acquired by foreigners and the procedures for such acquisition as well as those necessary for the enforcement thereof following the enactment of the said

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Korean Foreigner Land Acquisition Act

This Act was enacted on January 7, 1994, as the Act on the Acquisition of Lands by Foreigners and their Management, in order to generally improve and supplement the previous system of land acquisition by foreigners, for example, by allowing foreigners and foreign enterprises easier acquisition of land needed for their business affairs. With the enactment of this Act, the Foreigner’s Land Acquisition Act previously in enforcement (September 18, 1961, Act No. 718) was repealed. For an article on purchasing

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Korean Foreign Investment Promotion Act (Enforcement Decree)

ENFORCEMENT DECREE OF THE FOREIGN INVESTMENT PROMOTION ACT INTRODUCTION Details of Enactment and Amendment – Enactment: This Decree was enacted on November 14, 1998, following the enactment of the Foreign Investment Promotion Act, as the Presidential Decree No. 15931, in order to prescribe the matters mandated by the same Act and the matters necessary for the enforcement thereof. – Amendment: This Decree has taken its present form after going through thirteen amendments, including the latest amendment made on March 8,

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Korean Residential Lease Liens (Leery of lousy leases, landlords? Get a lien)

Leery of lousy leases, landlords? Get a lien The Korean Herald , July 4, 2003 By Sean Hayes Dear Sean, I am considering renting an apartment, but the landlord wants a large deposit. Is there any way for me to protect myself against bad landlords that don’t return deposits?- Uneasy in Taejon. Dear Uneasy, there are two main types of residential rental agreements. The most common is Chonse. The Chonse rental system requires a tenant to put approximately 50 percent

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Restrictions on Foreigners Purchasing Property in Korea

Foreigner Purchasing Property in Korea is not longer restricted for most acquisitions.  An article on Korean Real Estate can be found at: Korean Real Estate Acquisition Taxes. Dear Sean Hayes: I was informed that there are limitations on foreigners purchasing property in Korea. I would like to purchase an apartment and was wondering what restrictions are on foreigners in purchasing property in Korea. What does a foreigner need to do to purchase property in Korea and is it true that

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