fiduciary duties of directors Archives

Directors of companies, registered in Korea, many be held criminally and civilly liable for acts as a director (in limited cases even controlling shareholder can be held criminally liable). Many acts (or inactions) that would not be deemed criminal in the West are, often, deemed criminal in Korea. Additionally, matters that are considered in the West as mere “civil” matters, often, begin and end at the Korean prosecutor’s office. A little due diligence, complying with corporate formalities, nuanced corporate governance

It is getting easier for shareholders to obtain judgments against directors for breaching their fiduciary duties to Korean companies. We recommend all directors obtain director liability insurance and that all shareholders consider suing directors when disputes arise because of the lack of oversight or malfeasance by directors. For a more comprehensive article on this issue please see: Fiduciary Duties of Korean Directors, Representative Directors, and Controlling Shareholders of Korean companies. Director’s Fiduciary Duties to Korean Companies Article 382-3 of the