Dangerous substances, illegal substances and other controlled substances are believed, in Korea, to be more often transported by ships into Korean waters. Thus, the Korean government has amended a giving act concerning Korean Shipping Law. To, among other things, increase transparency of what is being shipped, the Korean Act on the Arrival, Departure, etc. of Ships (hereinafter as “Act on Ships” or “Korean Shipping Act”) was amended. The Korean Act on Ships, in general, establishes regulations concerning the arrival and departure of ships, as well as sets up safety measures in Korea. The Amendment was propoed in December of 2018. The Amendment was proposed by the Chair of the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee. Korean Shipping Act stipulates that shipping companies, which share the same shipping route and transport dangerous products, shall share accurate information. The Amended Korean Shipping Act shall become effective from July 2019. Overview
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Jurisdiction and Choice of Law Issues in Agency Agreements
In drafting and negotiating a Korean commercial agency agreement between a principal located in one country and an agent located in another country, proper consideration needs to be given to the choice of law regarding the governing law and jurisdiction of such an agreement. Jurisdiction determines which country’s courts will hear any proceedings that may be brought in relation to the agreement, whilst governing law is the law that shall be applied by the courts hearing any such proceedings that may arise under the agreement. Ideally, the parties to the agreement should expressly agree as to choice of jurisdiction and governing law. A governing law clause will set out the parties’ choice of the law that will apply to the parties’ agreement, and a jurisdiction clause will set out the parties’ choice as to jurisdiction. These aforementioned clauses are – in general – considered by any courts (for the exemptions
Continue readingKorea’s New Electronic Passport Without Resident Registration Number in 2020
The Amendment to the Korean Passport Act introduces a new Korean Electronic Passport. The passport excludes the Resident Registration Number and establishes a new system in order to ease administrative work of the government. This Amendment shall become effective in 2020. The Passport Act of the Republic of Korea According to Art. 7 Passport Act every Korean passport shall include: Type of passport; Issuing state; Passport number; Date of issuance and expiration; Issuing authority; Name of the passport-holder; Nationality of the passport-holder; Gender of the passport-holder; Date of birth of the passport-holder; Resident registration number of the passport-holder; and Photo of the passport-holder; Due, facially, to protect personal information, the Korean Foreign Affairs and Unification Committee declared the low importance of the inclusion of a Korean Resident Registration Number in Korean passports. Therefore, the Amendment excludes the number from Korean passports. Highlights of the Amendment to the Korean Passport Act
Continue readingKorea Focuses on Greater Control over Imported Food – Amendment to the Special Act on Imported Food Safety Control 2019
The Special Act on Imported Food Safety Control was recently amended and shall strengthen the on-site inspections of foreign establishments, which already export food to Korea, as well as those, which apply for registration of the importation of overseas food. The Amendment was proposed in early April 2019 and shall become effective upon promulgation. We expect substantially heightened risk for importers and an increase in the price of many imported goods. Major Provisions of the Korean Amendment to the Special Act on Imported Food Safety Control Food from facilities overseas, which is produced, manufactured, processed, treated, packaged and/or stored, before being imported to Korea, shall be subject to inspections initiated by the Ministry of Food and Drug Safety. In addition, overseas facilities, which intend to import livestock which are slaughtered, manufactured, processed, stored and/or milk is collected, shall also be required to be inspected upon request of the Ministry of
Continue readingThe Amendment to the Korean Pharmaceutical Affairs Act 2019
The Korean Pharmaceutical Affairs Act (hereinafter as “Pharma-Act”) was proposed by the Chair of the Health and Welfare Committee of Korea on December 27, 2018. The Pharma Act shall adds more cumbersome regulations on the foreign qualifications of pharmacists, increases the limits of penalty surcharges and shall change the system to transfer a Korean pharmacy businesses. This Amendment shall become effective in July 2019. The major amendments are detailed below. Key Highlights of the Korean Amendment to the Pharmaceutical Affairs Act Criteria for the Qualification for the Korean Pharmacist Exam regarding Pharmacists Who Graduated from Foreign Colleges The current Art 3 Pharma-Act, as part of Section 1 – Qualifications and Licenses of Pharmacists states that a person, which wants to become a pharmacist “…shall obtain a license from the Minister of Health and Welfare.” A license shall be granted if an individual has a bachelor’s degree from a national institution
Continue readingTax Breaks for Korean Landlords: Real Estate Taxation Basics
Proposed by the Chairman of the Strategy and Finance Committee of the Republic of Korea on September 20, 2018, the Amendment to the Korean Restriction of Special Taxation Act came into force on January 1, 2019. The amendment has decreased the taxation burden of some landlords. The Act was amended in favor of Korean landlords who renew long-term rentals with tenants by charging a lower increase of rent by a percentage lower than a percentage set by Presidential Decree. This Act shall reduce, in general, the tax burden of these Korean landlords. Art 96-2 Restriction of Special Taxation Act of the Republic of Korea states that “…when a national of the Republic of Korea who runs a housing rental business has earned a sum from that business a total income not exceeding 75 million won in a single taxable year, and has rented a commercial building to the same tenant
Continue readingSucceeding in Business in Korea
Since 1977, I have observed the rise and fall of many foreign companies in South Korea. I have witnessed the trials and tribulations as a bank employee, a high-tech salesman, a country manager and as a business consultant of foreign and Korean companies doing business in Korea . Bluntly speaking, while some foreign ventures have had some unlucky breaks, those companies that have succeeded in the Korean market have done so for good reasons. And those who have failed have done so, largely, because of their own inadequacies and often the lack of understanding of the needs of businesses in the Korean market. Those companies who for a period “succeed” do so by largely having some kind of a monopoly in technology, a lock on a particular resource, or an overwhelming marketing advantage that makes Korean copycats look decidedly second class. But many initially successful companies ultimately fail by not getting adequately
Continue readingLegality of an Employer Lockout in Korea: Korean Labor & Employment Law Basics
Korea, in the eyes of many domestic and foreign companies, has been lax in the enforcement of the rights of employers to run a business. One noted cases that lead to a decision by the Supreme Court of Korea comes to mind. Because of a labor strike at a major automobile parts manufacturer and the physical blocking of the use of replacement workers and employer machinery by the employees, the employer implemented a partial unpaid lockout of certain employees (employees were employed by a unit of the employer), thus disallowing certain workers to enter the workplace in order to prevent further disruption of the manufacturing process. The employees physically blocked production and thus did not allow certain orders to be fulfilled by the employer, thus affecting the employer’s business. The case is a great case to demonstrate Korea’s Lockout Law. Following the lockout, the locked-out employees, on several occasions, expressed
Continue readingProvisional 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 to enforce a debt or potential debt against a debtor is to obtain a provisional attachment if the debtor is a company or individual without significant tangible assets. Companies with significant assets are likely to pay debts after a judgement and, normally, are not significantly harmed by the attachment. Courts
Continue readingEnglish-Speaking Business Lawyers in Seoul, Korea: Corporate Law & Compliance Team at IPG Legal
Sean Hayes and English-Speaking Korean attorneys working for an international law firm in Korea author the Korean Law Blog. Sean Hayes is the author of this blog. Additionally, English-Speaking corporate attorneys and Korean-savvy business professionals contribute articles to the blog. The blog is rated by the ABA one of the Top 100 Law Blogs. Leading rating services rate IPG Legal as a leading law firms operating in Asia. IPG serves mainly expat companies and individuals and, thus, has many English-speaking Korean lawyers with significant overseas corporate law experience. The Corporate Law and Compliance Team at IPG Legal Entry of a Fortune 500 e-commerce site into the Korean and Chinese markets. Advisory Services related to FTC and Supplier Risks for a major e-commerce company in Korea. Consulted on licensing, joint venture and regulatory compliance issues for an American real estate developer’s shopping mall joint venture operating in Korea. Due Diligence, drafting of shareholder
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