Why you Should Setup a Corporation in South Korea?

IPG Legal has assisted clients in the process of setting up a corporate entity in South Korea. Yes, it can be complex and time-consuming, but getting started on the right food is, often, the most important part to a successful business in Korea. For a list of corporate forms in Korea, please see: Korean Corporate Forms under the Korean Commercial Code. It is advisable to seek, in all but the most exceptional of cases, the assistance of a law firm

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Forming a Joint Venture in Korea, China & Southeast Asia: Listen to My Mother

My mother often told me, when I was much younger, to look both ways before crossing the street; carry an umbrella in the spring; and don’t go out alone in the dark. The advice can go a long way for Korean companies doing business outside Korea and for expats doing business in Korea. As we all know, Korean companies and many foreign companies lament over the fact that it is nearly impossible for Korean companies, with the exception of the

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Amendment to Korea’s Industrial Accident Compensation Insurance Law

Effective July 1, 2023, the scope of application of the Korean Industrial Accident Compensation Insurance Law was extended to include, also, the protection of those employees in Korea who are not “exclusively” working for a specific employer in Korea. Prior to the amendment, some employees who worked for multiple employees were not covered by the insurance. To extend the insurance benefit for these employees, the law has eliminated the exclusiveness requirement. The law’s amendment was a reflection on online “platform

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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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Do you Need to Enter the Korean Market via a Joint Venture/Partnership?

One of the major parts of our law practice here at IPG Legal for international clients, in Korea, is the structuring of joint ventures and the resolution of joint venture disputes in Korean courts and through arbitration. I find, in many of these cases, the non-Korean party is not in need of a joint venture with a Korean party to succeed in Korea and the Korean party does not realize or has no intent in satisfying obligations under the joint

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14 Things to Consider Before Starting a Manufacturing Business in South Korea

Korea, in many cases, is a better choice for the manufacturing of chemical, petroleum, construction equipment, complex crafted metals, specialty steel, automotive parts, semi-conductor, medical and pharmaceutical equipment and goods than China and most nations in Asia, because of Korea’s skilled work force, government incentives, protection of IP and increasingly transparent business practices. In many cases, manufacturing in Korea will not, in the end, be more costly than manufacturing in China, because of the increased efficiency of Korean workers and

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Forming a Joint Venture in Korea? Beware a Common Pitfall

A client, a minority shareholder in a foreign-capital-invested company in Korea is involved in litigation with other company shareholders (Korean shareholders) over issues the client had with the majority and other shareholders. The client requested me to post this article to warn others entering the Korean market via a Joint Venture or similar arrangement. This article is not intended to discourage entering the Korean market via a joint venture. JVs in Korea are, often, beneficial for businesses looking to expand

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Steps to Set up a Business in South Korea

Setting up a corporate entity in South Korea involves several steps and can be complex. If you are setting up a Korean venture between multiple parties or corporations make sure you have a carefully and custom-drafted Korean shareholder agreement, bylaws, articles of incorporation, employment agreements, employment rules, vendor agreements and you have the basic systems and processes in place to help ensure working shareholder and employee compliance. Even if you are the, only, shareholder in the company make sure to

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Proposed Amendments to the Monopoly Regulation and Fair Trade Law: 2023

Proposed Amendments to the Monopoly Regulation and Fair Trade Law: Extending Merger Notification Exemptions and Adding a Voluntary Commitment System. The Monopoly Regulation and Fair Trade Act (MRFTA) is being revised, and the Korea Fair Trade Commission (KFTC) has released an advance notice of these proposed changes, which include, among other things, (i) expanding merger notification exemptions; and (ii) introducing commitment processes for merger control. (the “Proposed Revisions”). The KFTC will solicit and compile feedback on the Proposed Revisions during

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IPG Legal’s Korean Commercial Law Practice

IPG Legal is a prominent client-focused law firm with its Korean Office based in Seoul, South Korea. IPG Legal’s Commercial Law Practice provides legal services to individuals and businesses. IPG Legal’s Commercial Law Practice is widely recognized as a leading law practice in South Korea based on its numerous ratings in legal rating services and its reputation in the legal community. A U.S. lawyer working for IPG Legal, Sean Hayes, was rated in Asia Business Law Journal’s Top 100. IPG

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