IPG Legal’s Article on Korean Litigation for Lexology

Court system What is the structure of the civil court system? The civil court system in South Korea has a three-tier structure. At first instance, civil cases are generally heard by district courts, unless jurisdiction is governed by specialised courts such as family courts, administrative courts, the Bankruptcy Court or the Patent Court. Depending on the nature and value of the claim, a case may be heard by a single judge or by a panel of three judges. At second instance, appeals from single-judge decisions are heard

July 9, 2026 Sean Hayes

Selling Traditional Korean Products to the World by Tom Coyner

This is a repost of an article from over 10 years ago, but it has practical relevance today and motivated us to share it again. Even foreigners living in Korea cannot help but notice how makgeolli has taken on a new air of respectability. As a long-time imbiber of the brew – we are dubbed “makgeoholics” – this is good news! I once was a Peace Corps volunteer who lived on a monthly stipend of 43,000 won for lodging, food, and entertainment. That meant beer and other

July 2, 2026 Sean Hayes

Korean Supreme Court Clarifies Property Division Method for Unlisted Shares in Korean Divorce Cases

On May 29, 2026, the Supreme Court of Korea issued a landmark decision regarding the division of unlisted shares in a divorce property-division case. The ruling is significant because the Court expressly addressed how courts should approach cases where a large portion of the marital estate consists of founder-held shares in a privately held company. The Court recognized that a cash settlement, commonly referred to in Korean practice as daesang-bunhal or compensatory division, is often the most practical method for dividing unlisted shares. However, the Court made

July 2, 2026 Sean Hayes

Korean Supreme Court: Use of Lawfully Collected Personal Information in Civil Complaint May Constitute a Justifiable Act under the Personal Information Protection Act

With much uncertainty in requirements of data processors under the Personal Information Protection Act (PIPA), the Supreme Court of Korea held that the use of another person’s lawfully collected name and address in a civil complaint filed against that same person may constitute a justifiable act and therefore may not be punishable under the Personal Information Protection Act, provided that the use remains within the scope necessary to conduct litigation. On May 14, 2026, the Second Criminal Division of the Korean Supreme Court reversed the lower court’s

June 30, 2026 Sean Hayes

“Earned Income” Definition under Korean Income Tax Act held constitutional by Korean Constitutional Court

The Constitutional Court of Korea ruled a provision of the Korean Income Tax Act defining the scope of benefits included in “earned income” as constitutional. The Court determined that the provision of the Income Tax Act, which defines earned income as “salaries, wages, remuneration, allowances, bonuses, and benefits of a similar nature received by providing labor,” does not violate the principle of clarity in tax requirements. (2024 HunBa 8384 and 2025Hyun100, etc.). Case Summary Decision of the Korean Constitutional Court on the Clarity of Earned Income Definition

June 12, 2026 Sean Hayes

Amendments to the Korean Labor Standards Act: Break-Time Flexibility and Hourly Annual Leave

Recent amendments to the Korean Labor Standards Act introduce two important changes to the statutory framework governing working hours, rest periods, and annual paid leave. The amendments address long-standing practical issues arising from the rigid application of break-time rules and the absence of an express statutory basis for using annual leave in hourly units. The first amendment explained below permits employees who work exactly four hours to waive the statutory 30-minute break, provided the employee expressly requests to forgo the break. The second amendment, explained below, establishes

June 11, 2026 Sean Hayes

Seoul High Court Enforces the London Court of International Arbitration Association (LCIA) Award Despite Ambiguities

The Seoul High Court ruled that even if an arbitration award contains ambiguities in its order, Korean courts should enforce it if the award’s details, including the judgment amount, can be determined from its reasoning. Facts The main issue in the case is whether the award’s direction to “reactivate the secured accounts and take all necessary measures” was sufficiently specific to be enforced in Korea. KCC argued that the award did not clearly define the specific acts required and therefore could not serve as the basis for

June 10, 2026 Sean Hayes

Definition of Personal Information Processor under Korean PIPA

The Supreme Court of Korea ruled that a person who obtains personal information through fraudulent or deceptive means and uses it for business purposes is also a “personal information processor” under Korea’s Data Protection Law. In April of 2026, the First Criminal Division of the Supreme Court upheld the lower court’s ruling sentencing a defendant to one year in prison for violating the Korean Personal Information Protection Act ( 2026do477 ) (“PIPA”). For an article on Statutory Damages for PIPA violations, please see: PIPA Violations Statutory Damages.

May 27, 2026 Sean Hayes

Korean Supreme Court Upholds Right to Tattoo by Non-Medical Professionals

The Korean Supreme Court, in an en banc ruling, held that tattooing performed by non-medical professionals is not an unlicensed medical practice. The Court overturned prior Supreme Court precedents that deemed tattooing an unlicensed medical practice. The Supreme Court of Korea ruled in May 1992 that eyebrow tattooing was an unlicensed medical practice (91do3219). The Supreme Court of Korea ruled in April 2004 (2004do673) that ordinary calligraphy tattooing constitutes a medical act and is punishable as an unlicensed medical act. Facts Issue Whether cosmetic and “calligraphy” tattooing

May 14, 2026 Sean Hayes

Trends in the Korean Civil Litigation System (2026)

The past year has been unusually active for dispute resolution in Korea. The most important developments concern attorney-client privilege, constitutional review of final court judgments, arbitration rules, and corporate-governance reforms that are likely to generate more shareholder and board-level disputes. We shall update the reader when more is known. Please check back often. Korea has taken a major step toward statutory attorney-client privilege. On January 29, 2026, the National Assembly passed an amendment to the Attorney-at-Law Act of Korea introducing a new Article 26-2. The amendment recognizes

The Korean Law Blog by IPG Legal Law Firm