Effective July 1, 2023, the scope of application of the Korean Industrial Accident Compensation Insurance Law was extended to include, also, the protection of those employees in Korea who are not “exclusively” working for a specific employer in Korea. Prior to the amendment, some employees who worked for multiple employees were not covered by the insurance. To extend the insurance benefit for these employees, the law has eliminated the exclusiveness requirement. The law’s amendment was a reflection on online “platform
Continue readingThe Korean Law Blog by IPG Legal
IPG Legal is a Top-Rated Client-Centered International Law Firm that was rated a top Dispute Resolution Law Firm three years in a row. Sean Hayes, one of the blog authors, was rated a Top 100 Lawyer four years in a row. Schedule a legal consultation by the Schedule Appointment link above.
Occupational Safety in Korea: Serious Accidents Punishment Act
The Serious Accident Punishment Act (“SAPA”) was passed by the Korean National Assembly and came into effect on January 27, 2022. With the implementation and recent expansion of the SAPA, we encourage all employers to do a comprehensive compliance audit. Some law firms, including this one, have attorneys and staff that can assist your team in doing a comprehensive audit. SAPA has greatly expanded the list of accidents that are applicable and significantly increased the penalties for breaking the law.
Continue readingKorean National Pension Contributions and Tax Deductions for Freelancers and Expats Residing in Korea
Can freelance workers apply for Korean National Pension Deductions when Calculating their income tax? Yes, freelance workers in Korea can apply for Korean National Pension deductions when calculating their income tax. The National Pension System of Korea is designed to provide retirement, disability, and survivor benefits to eligible individuals, including freelancers. Thus, the system applies notwithstanding if you are self-employed or employed by a company directly in Korea. When filing Korean income tax returns, freelance workers can include their Korean
Continue readingKorean Free Trade Agreements: Korean FTA Chart
Free Trade Agreements Executed by the Republic of Korea (“South Korea” or “Korea”) South Korea currently maintains 21 comprehensive free trade agreements with a combined total of 59 countries. The chart below provides information on the countries with which these Korean FTAs are in force, the key dates of the free trade negotiation processes, and the significance of these agreements. The following chart is accurate as of December 1, 2022. References of the chart can be found at the following
Continue readingDefinition of a Franchise in Korea under Korean Franchise Law and Corresponding Disclosure Requirements
A franchise, in general, in the Republic of Korea (“Korea”) is a continuous business relationship under which a Franchisor allows a franchisee to use its business marks (trademarks, service marks) to sell goods or services in accordance with certain quality standards, business methods, training and control requirements in exchange for the payment of a franchise fee (Fair Transactions in Franchise Business Act (“Franchise Act”). The Korean Fair Trade Commission and the Courts of Korea have broadly interpreted the definition to the
Continue readingKorean Flat-Tax Rate for Foreign Workers in Korea
The Special Tax Treatment Control Law of Korea extended the benefit of the Flat Tax to 20 years from the present five years. The flat tax rate with the local income tax is 20.9%. of the foreign employee’s earned income. Additionally, the National Tax Services of Korea and the Ministry of Economy & Finance of Korea agreed to deem the starting date for employment to be January 1, 2014, even if the foreigner worked in Korea prior to 2014. Thus,
Continue readingWithout a Korean Employment Contract, can you bring a Claim against your Korean Employer for Breach of Contract or Labor Law Violations?
In Korea, an employment relationship is generally established through an employment contract between the employer and the employee. However, it’s important to note that an employment agreement can be either written or verbal. While a written contract is highly recommended to clearly define the rights and obligations of both the employer and the employee (and is mandated under Korean Law in most situations), a verbal agreement can also create a legally binding employment relationship between an employer and employee in
Continue readingTrademarks Registration in Korea: Don’t Just Trust Us
Our friends over at the China Law Blog have posted on an intellectual property issue that leads to a good deal of work for the IP Litigation Practice at the Korean office of IPG Legal. If you don’t want the added cost of litigating a matter in a Korean court, please register your trademark in Korea. Registering in the U.S. and the E.U. is not enough. Your “international filing” only gives you a grace period to file in other nations
Continue readingTermination of a Franchise Agreement in Korea: Korean Franchise Law Basics
The Fair Transactions in Franchise Business Act (“Franchise Act”) and the Fair Transactions in Large Franchises and Retail Business (“LFBA”) are the major laws governing the relationship between a franchisor and a franchisee. Whereas the general provisions of the Monopoly Regulation and Fair Trade Act (MRFTA), Commercial Act and Civil Act, additionally, regulate the franchise relationship and other business relationships in Korea. See: Definition of a Franchise in Korea for the Definition and an explanation of Korean Disclosure Requirements. Franchise
Continue readingKorean Cargo Claims under Korean Maritime Law
If you’ve ever wondered how to bring cargo claims under the Maritime Law/Shipping Law in Korea when South Korea is not a signatory to any international conventions governing the shipping of goods by sea, such as the Hague-Visby, Hamburg, or Rotterdam conventions, continue reading to find out. For information on arresting a ship in Korea please see: Arrest/Attachment of Ships at Korean Ports: Maritime Liens in Korea. And for an article on releasing an arrested ship please see: Releasing an Arrested
Continue reading
You must be logged in to post a comment.