Korean Exit Bans for Not Paying Taxes, Custom Duties and Violations of Korean Law

The Korean Immigration Control Act and related acts allow the potential to permanently impose an exit ban from Korea on foreigners for nearly all acts that are determined by the Korean Ministry of Justice as “harming the interest, public safety or order in the economy of the Republic of Korea” until the reason for the exit ban ceases to exist. (Immigration Control Act of Korea Article 4(1)5.) However, IPG Legal has successfully challenged these exit bans in Korea and is

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Collecting an Unpaid Invoice from a Korean Bankrupt Debtor

The number of bankruptcy and rehabilitation filings in Korea is on the rise. The last creditor to be paid is, typically, the foreign company. We receive emails, on nearly a weekly basis, from companies and individuals attempting to collect commercial debts in Korea. Many of these creditors are not aware that the Korean debtor has filed for bankruptcy or is experiencing financial difficulties.   Before Engaging in a Relationship with a Korean Company 1. Before engaging in any work or giving

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Consideration and the Statute of Frauds Under Korean Contract Law

A contract, in Korea, is still binding on the parties, in most cases, even if the contract contains no consideration. Thus, a mere “gift” that contains no benefit to the giver may be an enforceable contract under Korean Law. However, in many international contacts (and even local contracts), it is best to still include the standard “consideration” clause, since enforcement of the contract could occur in another jurisdiction. For an article on the basics of Korean Contract Law please see:

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Guide to Winding-Up/Closing a Korea-based Company: Korean Company Liquidation Procedure

Any business in Korea that is registered as a corporation must wind up/liquidate the company to legally close the business in Korea. Many companies, however, choose to forgo this step thinking that no repercussions will be felt. This belief is far from the reality. I know a pending case that has led to prosecutions, a lawsuit of a related company, and a tax audit of an individual shareholder. For an article on Korean Bankruptcy please see: Korean Bankruptcy Law. The

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Korean Inheritance Law on Registration of Inheritances in Korea

My friends at The Korean Tax Blog have an excellent post called Your Complete Guide to Estate Registration in Korea. The accounting firm at the Korean Tax Blog assists IPG Legal in all inheritance tax matters. For more information on Korean Inheritance Law please see: Who Inherits What, When, and How in Korea?, Renouncing an Estate in Korea and Korean Legal Reserve of Inheritance. The article, notes, in part tips for a successful inheritance. The article notes that for a

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Happy Veterans Day

Wishing all that served their country in the military, a happy and healthy Veterans Day.

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Renouncing an Estate/Inheritance under Korean Law

A typical matter of a party renouncing an estate in Korea commences when a family member in Korea requests the waiver/disclaimer of the right to a Korean inheritance. In some cases, this request is for nefarious reasons. A typical, situation involves the estate of a Korean national decedent with non-Korean family abroad. The estate, often, includes assets in Korea and sometimes abroad. The Korean-based family, often, requests the non-Korean based family to sign a power of attorney or a document

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Exercising Korean Stock Options in Companies in Korea under the Korean Commercial Code

Stock options, in Korea, are often provided to senior foreign and domestic employees of companies in Korea. For stock options, in non-listed/non-public companies in Korea, to be exercisable by employees in Korea (thus a valid option) the option must be approved, in most cases, at a general shareholders meeting of the Korean company. Another article that may be of interest can be found at: Granting & Exercising Stock Options in Korea.   The articles of incorporation of the Korean stock granting

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Korean Constitutional Court Strikes Down North Korean Anti-Pamphlet Law

The Constitutional Court of the Republic of Korea, a court I worked for six years, struck down a law from 2020 that criminalized the spreading of anti-Northern Korean pamphlets into North Korea by balloon and other means. The law imposed a potential penalty of up to three years in jail or a fine of up to KRW 30,000,000 (US$ 22,000). The Court voted 7-2 to invalidate the law, but noted that the Korean government can regulate the sending of pamphlets

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Minimum Capital Requirements for Setting Up a Corporation in Korea

My friend at the Korean Tax Blog has an excellent post on the minimum capital requirement for setting up a company in Korea. The post notes that: Before 2009, Korean law required a minimum capital of 50 million KRW to estabish a corporation. However, since February 2009, there are no longer any restrictions related to mimimum capital in Korean Law. www.thekoreantaxblog.com This amendment to Korean Law has made it easier to open a company in Korea. However, to open a

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