Definition 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

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Korean 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,

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Without 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

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Trademarks 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

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Termination 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

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Korean 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

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Service of Process of Legal Documents in Korea explained by the Korean Supreme Court

The Korean Supreme Court has recently rendered a judgment highlighting the requirements for Korean courts to accept the service of legal documents, in Korea. In a case involving a dispute over the existence of a right of easement, the Supreme Court of Korea declared that merely listing an address in appeal documents is not sufficient if there is no possibility of receiving the legal documents at that location. This decision has far-reaching implications for those wishing to serve documents on

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Can you claim severance pay from a Non-Korean Employer?

Severance Pay is a payment which the employer is required to pay an “employee” for a retiring, terminated or resigning employees that works for a company in Korea for, at least, one year.  The reason for termination, retirement or resignation does not effect the applicability of the severance requirement.  Even an employee who is fired due to fault can claim severance pay under Korean law. Severance pay is a statutory liability of the employer.  It doesn’t matter whether an employment

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Pending Bill in Korea Aims to Protect Crime Victims’ Identities

Korea has many protections in place to protect the privacy of individuals, however, a concerning issue has come to light, in recent years, regarding the exposure of Korean victims’ identities and addresses during legal proceedings in Korea. Korean lawmakers, reacting to this issue, proposed a bill aimed at safeguarding the personal information of alleged crime victims. The bill has been stuck in legislative limbo for over two years. The Busan Hit-and-Run CaseOne particular incident, widely known as the “Busan hit-and-run

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Acquiring Shares in Closed Korean Corporations in Exchange for Products at Discount: Don’t Forget the Due Diligence in Korea

I just received a phone call from a prospective client with a wonderful product that has been offered a sweetheart deal.  Whenever I hear that someone has received a no risk or sweetheart deal in Korea, a red flag immediately goes up in my head and I immediately request the client to let me do a couple of weeks of due diligence. One of the many, ubiquitous, sweetheart deals is ownership of shares in company in exchange for some benefit

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