Preparation for Korean Police & Prosecutor Interrogations & Witness/Defendant Questioning at Korean Courts

All good Korean attorneys prepare all clients for witness questioning & suspect interrogations in Korea.  Clients may be subpoenaed to appear in a Korean police office, Korean prosecutors office or to appear as a witness or a criminal defendant in a Korean Court and should be thoroughly prepared by their attorneys. We at IPG, hear of too many issues of lawyers, only, telling clients to “tell the truth and don’t worry.”  This is, obviously, not adequate witness or suspect preparation.  We see this from Korean law firms large and small.  Thus, the following list was prepared as a basic guide to necessaries prior

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Korean Trademark Act Revised: Korean Trademark Act of 2017

The Korean Trademark Act is, often, criticized by scholars and Korean legal practitioners for not being an effective means of enforcing copyrights and for being overly cumbersome.  The new changes are a step in the right direction.  Korea promulgated on September 1, 2017 the revised Korean Trademark Act. The following are the major changes. Any party may file an action to cancel a a trademark for non-use under revised Korean Trademark Law This change shall, likely, increase the number of litigants.  Prior to this change, courts would require litigants to establish that the litigant is an “interested” litigant.  The change

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Korean Governmental Regulations Stifle Innovations and the Role of Korean Law Firms

The Korea Joonang Daily has a good piece concerning the effect of over-regulation on Korean innovation. The article brings to my mind the important role Korean Law Firms should play in preserving economic and individual liberties (basic rights). The reality is without a strong push in the National Assembly (which seems hopeless) the, only option is the courts.  As many readers may know, I formerly worked for the Constitutional Court of Korea.  The Constitutional Court can be a useful tool in fighting the numerous useless, unnecessary, peculiar and often simply non-nonsensical Korean regulations. The answer to this issue, thus, may be to

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

Korea, for many business, 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 business may enter as a Foreign Capital-Invested Company (Foreign Direct Investment Company)a Branch or Liaison Office.  In most situations, the

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Korea Immigration Deportation, Departure/Exit Orders: Immigration Law Basics

The Korea Immigration Service, a branch of the Ministry of Justice, has in the past few years increased enforcement actions against foreigners committing crimes and even cases of foreigners having charges dismissed by the Korea Prosecution Service.  Korean Exit Orders, Deportation Orders or other actions by Korea Immigration Service are challengeable at the Administrative Court for abuse of discretion. In most cases, it is near impossible to succeed in these challenges without an experienced and proactive attorney.  Because of Korean legal realities, it is advisable to retain, for the administrative court case, a proactive retired Korean court judge that, actually, actively

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Hiring English-Speaking Korean Labor Lawyers in Korea

In most cases involving employment issues concerning foreign language teachers and hagwons (not company executives), Korean labor lawyers may not be a cost-effective means of handling your dispute. Often a Nomusa (노무사) is an adequate means to resolve the dispute with your employer. A Nomusa is, however, often not adequate for high-net worth individuals, company executives and for complex cases.  These type matters, often, should be filed to a court or shall be, likely, appealed from a Korean Labor Board to a court.  A Nomusa may not handle cases in Korean Courts.  Additionally, often the skills and experience of Korean

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Sean Hayes Invited to Chair Panel for Horasis Foundation

Sean Hayes shall chair a panel for the Horasis Foundantion’s Conference in Seoul, Korea.  The Horasis Foundation shall hold the conference on September 22 to the 24th. The Conference is entitled: Entrepreneurship: Balancing Disruption and Consent.  Participants at the conference shall include the Chairman of Hansol, the UN Special Envoy for Disaster Risk Reduction, Chairmen of two leading Indian pharmaceuticals, the Chief Investment Officer for IFC, a Vice Minister of Foreign Affairs, a former Prime Minister of Japan, a Former Prime Minister of Korea, the Vice Chairman & CEO of the Federation of Korean Industries, and other dignitaries from industry,

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Korean Commercial Liens versus Korean Civil Liens

Korea, in short, has two major types of liens – Commercial Liens and a Civil Liens.  For example, in a dispute between a contractor and a landowner or developer, a contractor make execute a Commercial Lien or Civil Lien.  A Commercial Lien is governed by the Korean Commercial Code while a Civil Lien is governed by the Korean Civil Code.  I shall for ease, utilize the contractor and landowner (developer) for example purposes only.  For explanation of Korea’s law on attachment please see: Preliminary Attachments in Korea Korean Civil Liens Korean Civil Liens are governed by the Korean Civil Code.

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Korean Real Estate Acquisition Taxes for Purchase of Real Estate in Korea

The following are the Korean real estate acquisition taxes for the purchase of real estate in Korea. These acquisition taxes are applicable to the purchase of an apartment, land or a commercial property. Taxes in Korea change, often, when new administrations come into office.  Thus, these taxes may change, thus, please consult with your real estate agent and/or accountant. Foreigner may purchase property in Korea, certain restrictions do apply to the purchase of property by foreigners. Basic Taxes Related to the Acquisition of Property in Korea.  Acquisition Tax (with surtax):     4.6% of Purchase Price Recording Tax:      

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Can a Foreign Company be Deemed a Domestic Company for Tax Purposes and Taxed on Worldwide Income?

If Korea deems a foreign incorporated company a Domestic Corporation, the company shall be taxed on its worldwide income.  The relevant law, this determination is made under, is the Corporate Tax Act of Korea (“CTA”).  In the typical case, the National Tax Service of Korea designates the foreign-incorporated company a Domestic Corporation and requests details on overseas earnings in order to impose taxes on overseas earnings.  Of course this leads, invariable, to your Korean tax lawyer challenging the determination to the Korean courts. Domestic Company Tax Residency Test in Korea The Korean Corporate Tax Act defines a Domestic Corporation as

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Provisional Attachments of Assets in Pending Litigation in Korea Courts

A party attempting to collect on a debt or potential liability based on breach of contract or torts in Korea may obtain a Provisional Attachment of an Asset. Another useful tool to expedite proceeding in a Korean civil matter is to Obtain a Payment Order from a Korean Court.  A provisional attachment is considered provisional, since the attachment is executed prior to the final judgement. The, facial, purpose of a provisional attachment is to secure assets necessary for enforcement in cases where a defendant may conceal or dispose of assets. However, a provisional attachment, often, encourages settlement. We advise most creditors attempting

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Does Korea have Common Law Marriage?: Korean Common Law Marriage (De Facto Marriage) Basics

While the concept of a Korean Common Law Marriage (since Korea has no concept of a Common Law) does not exist, Korea has a similar law than the laws, in the States, often referred to as Common Law marriage.  FYI – few U.S. States recognize common law marriage. In Korea, the concept of Common Law Marriage is referred to as De Facto Marriage.  In Korea, all “legal marriages” are marriages that are registered at the local town office or recognized via marriage abroad (comity).  The De Facto Marriage is a limited exception to this “legal marriage” concept.  The following is

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Korean Inheritance Law: Who Inherits What, When & How in Korea?

If a decadent, governed by Korea’s Inheritance Law, dies without a will (intestate succession) the estate of decadent shall pass according to Korea’s Intestate Succession Law.  The key points of Korean Intestate Succession Law and Korean Inheritance Law is noted below.  We deal with many cases, at our law firm in Korea, where a Korean family member requests a U.S. or European family member to disclaim an inheritance.  Normally, a form is provided to the foreign family member.  We suggest understanding the situation and understanding what you are disclaiming.  For an article on this issue please see: Disclaiming an Inheritance

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Korean Statute of Limitation in Civil Cases in Korea

The period of the Korean statute of limitation varies based on the type of wrong/breach, type of parties to the case and details of the matter.  The list below is a non-exclusive list of the major Korean Statute of Limitations. The following is an overview of the major periods of the statute of limitations in Korea.  Statute of Limitation law is considered a part of the substantive law and not mere procedural law in Korea.  The following is a list of the major Korean statute of limitations.  The list is not exhaustive.   10-Year Statute of Limitation in Korea Contractual Claims

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Increased Scrutiny of Employers by Korean’s Ministry of Employment & Labor under President Moon’s Administration: HR Audit Needed by Korean Employment Lawyers

Many Korean Employment Lawyers are taking note of the recent initiative by Korea’s Ministry of Employment & Labor.  At the end of June of 2017, the Ministry announced an “Unfair Labor Practice Eradication Initiative.” This Initiative intends to investigate and punish perceived “unfair labor practices” of employers in Korea by having the Ministry of Employment & Labor conduct more audits of companies and provide punishment for those perceived to be in violation of Korea’ Labor Law.  It is time to do an internal audit of the labor practices of your company.  The audits completed by Labor Lawyers (not actually lawyers

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Grounds for Divorce in Korea: Korean Divorce Law Basics

Foreigners may file, in most cases, for divorce in Korea if one party to the divorce resides in Korea r the parties agree to the jurisdiction of the Korean Court.  Korean does not restrict those under SOFA, diplomats and non-permanent residents from filing divorce in Korea. However, if the non-filing party to a divorce wishes to stay married, the filing party must prove that his or her hands are cleaner than the non-filing spouse and must establish adequate grounds for divorce.  The Grounds for Divorce in Korea are noted below. In most cases of foreigners divorcing, it is advisable to

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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 shall never push to you useless memos, non-nuanced legal advice or get you into litigation without an honest assessment of

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Korean Distributor Sales Territory or Customer Restrictions in Korea: Korean Distributor law Agreements in Korea

Korea’s Distribution Law is governed, primarily, by the Commercial Code of Korea, Monopoly Regulation and Fair Trade Law of Korea (FTL) and the, newly enacted, Fairness in Distributor Transactions Act of Korea.  These laws comprise a substantial body of law that is consistently evolving. The main regulatory body enforcing the FTL of Korea is the Fair Trade Commission of Korea (“FTC”).  The Fair Trade Laws of Korea, in most cases, creates the most significant risk for suppliers and manufacturers doing business with distributors in Korea.  A nuanced understand coupled with a proactive approach to your distributors is necessary in succeeding in

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Liquidated Damages vs. Penalty Damages: Korean Contract Law Basics

Liquidated Damages v. Penalty Damages in Korea In Korea, liquidated damage clauses in South Korean contracts may be invalidated if the liquidated damage amount is deemed, by a Korean court of law, as “unduly excessive.” (Civil Act Art. 398(2)). Article 398 of the Civil Act may be found below.  Korean Liquidated damages law is governed by the Civil Act of Korea and related Korean Law. However, if an agreement, in Korea, notes a “penalty,” the amount of the “penalty is presumed to be determined in advance of the damages” (Civil Act Art. 398(4)) and is presumed valid.  Of course, the

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English-Speaking Arbitration Attorneys in Korea

International arbitration between Korean companies and American, Australian, British, Chinese, Indian, German and other nation companies is on the increase.  Regrettably, few Korean attorneys are capable of handling international arbitration cases in the English language, because of the lack of experience in complex international arbitration and the lack of adequate English language skills.  The reality is Korea has few English-speaking arbitration attorneys capable of handling complex international arbitration matters, thus, many firms have turned to foreign attorneys to fill this glaring gap.   Sean Hayes is the author of the he Korean Law Blog .  English-speaking Korean attorneys contribute to this

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