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
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Succeeding 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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