Language Supremacy Clauses in Korean Agreements Governed by Korean Law

A language supremacy clause dictates what language governs the interpretation of a contract. Many international contracts are drafted in multiple languages. However, because of the complexity of legal terms, lack of precision in certain languages, the nature of language translation, and other local realities it is best to choose a governing language to avoid the issue of an alleged discrepancy between the Korean and English-language versions of the contract. In most cases, we advise choosing English as the governing language

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Laying off an Employee in Korea: Korean Law on Corporate Downsizing & Redundancy

Reducing the headcount in Korea can be difficult, time-consuming, and costly without the use of an accountant and a proactive attorney. Article 24 of the Labor Standards Act of Korea governs the dismissals of employees for managerial reasons. This is the main applicable law for making an employee redundant. For a general article on terminating an employee in Korea please see: Terminating an Employee in Korea. For an employer employing “employees” in Korea to legally terminate under Article 24 of

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Squeezing-out Minority Shareholders under Korean Corporate Law

The amended Commercial Code of Korea provides for “squeeze-out” rights for shareholders holding 95% or more of the shares of a company. This Korean law was promulgated in April of 2012. The law also provides for a right of minority shareholders of Korean companies to demand a “sell-out.” It seems possible, under the very vague wording of the amended clauses, for a sell-out to take place at the same time as a squeeze-out with the potential of conflicting appraisals and

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Top 100 Korean Lawyers & Legal Consultants in Korea

Sean Hayes, head of the Top Korean Dispute Resolution Law Firm of the Year was rated by LawAsia, one of the leading peer-reviewed publications in Asia, as a Top 100 Lawyer in Korea. Sean Hayes is one of the only non-Korean attorneys on this Korean Lawyer “A-list” and the only non-Korean that was on the list each year the list was published. Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of

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Korean Corporate Tax Rate

The Korean Corporate Income Tax law was amended to lower Korean corporate income taxes for 2023. The amendment is applicable for the year 2023 or until amended. For an article on the reduction in Korean Stock Transaction Taxes please see: Korean Stock Transaction Taxes.  Tax Basis 2022 (Local Income Tax) 2023 (Local Income Tax) Less than KRW 200 million 10% (11%) 9% (9.9%) KRW 200 million to KRW 20 billion 20% (22%) 19% (20.9%) KRW 20 to KRW 300 billion

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Korean Statute of Limitations for Unpaid Wages in Illegal Worker Dispatch Cases in Korea

The Supreme Court of Korea ruled in April of 2023 for the first time on the statute of limitation for damages claims based on an illegal dispatch of workers in Korea. The Supreme Court of Korea ruled that the statute of limitations clause under Article 766 of the Korean Civil Code and not the statute of limitations clause under Article 49 of the Korean Labor Standards Act should be applied to unpaid wage claims filed by a subcontractor’s employee against

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Can Foreigners without Marriages Registered in Korea Divorce in Korea?

Expats without a marriage registered in Korea, can, typically, divorce in Korea. If a marriage is registered in a country recognized by the government of the Republic of Korea, the Korean Family Court shall, normally, consider the marriage a valid marriage in Korea. Exceptions exist for marriages against public policy (e.g. plural marriages and marriages with a minor). Additionally, Korea’s Act on Private International Law allows for a divorce in Korea if the family relationship or the dispute leading to

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IP Implications of Chat GPT and Samsung’s Temporary Restrictions on Generative AI in Korea

Chat GPT by OpenAI has increased employee productivity and some employers have even incorporated it into their work systems for improved efficiency. However, Chat GPT brings up many legal issues that have not, yet, been litigated in courts. Chat GPT, an “artificial intelligence” (AI) service developed by OpenAI, has gained widespread popularity for its remarkable ability to comprehend language patterns and structures. Many companies, including those in the legal industry, are considering leveraging Chat GPT for tasks that require human-like

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Liability of Persons who have Lent their Names for Korean Business Transactions

In Korea, the person who is actually the subject of rights and obligations, often differs from the nominee such as the holder of licenses or business registrations. Sometimes those with assets use these nominee/proxies to attempt to avoid liability. As such, under certain conditions, a counterparty to a transaction is protected, under the Korean Commercial Act, by acknowledging the liability of not only the party to the transaction, the name borrower, but also the nominee (name lender). See: Korea’s Real Name Transaction

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Valid and Enforceable Contracts in Korea: Korean Contract Law Basics

In Korea, contracts are agreements that are legally binding and enforceable under the law. They can be created for a wide range of purposes, such as employment, real estate, intellectual property, and commercial transactions. A contract, in Korea, is an agreement between two or more parties to create, modify, or terminate obligations that are legally enforceable. To constitute a legally enforceable contract in Korea, there must be: It is important to highlight that certain contracts in Korea require specific formalities

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