The Seoul Bankruptcy Court is moving from the Seoul Court Complex in Seocho-dong to a newer, more modern building, a move welcomed by most in the legal profession. The Seoul Bankruptcy Court will begin operations on October 26, 2026, at the CAMCO Yangjae Tower (262 Gangnam-daero), Dogok-dong, Seoul. It will temporarily relocate to a private building as the construction of the Second Courthouse in Seocho-dong, originally scheduled for completion in 2026, has been postponed to the end of 2031 due to soil contamination issues. The Seoul Bankruptcy
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Terminating an Employee in South Korea: Strategies for a Lawful, Defensible Exit of an Employee under Korean Law
A defensible termination begins before the dismissal letter. Where the Korean Labor Standards Act’s dismissal protections apply, an employer needs justifiable grounds and must follow required procedures. For employees covered by the Korean Labor Standards Act’s dismissal protections, an employer needs legally sufficient grounds and must satisfy applicable procedural requirements. The commercial objective should be a defensible separation, not simply getting the employee out of the building. The following ten strategies provide an employer-side framework under South Korean law. Start with an HR audit. Engage Korean employment
Continue readingTrends in the Korean Civil Litigation System (2026)
The past year has been unusually active for dispute resolution in Korea. The most important developments concern attorney-client privilege, constitutional review of final court judgments, arbitration rules, and corporate-governance reforms that are likely to generate more shareholder and board-level disputes. We shall update the reader when more is known. Please check back often. Korea has taken a major step toward statutory attorney-client privilege. On January 29, 2026, the National Assembly passed an amendment to the Attorney-at-Law Act of Korea introducing a new Article 26-2. The amendment recognizes
Continue readingSucceeding in Business in Korea by Tom Coyner Business Advisor for IPG Legal
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
Continue readingDrafting & Negotiating Korean Joint Venture/Shareholder Agreements in Korea: Why Language, Governance, and Arbitration Clauses Matter
We have many clients who find it advisable to enter the Korean market through joint ventures with Korean partners. In many cases, this structure makes commercial sense: the Korean partner brings local market knowledge, relationships, regulatory familiarity, and operational experience, while the foreign partner contributes capital, technology, branding, and/or international distribution. However, joint ventures in Korea generate a disproportionate number of disputes involving foreign investors. In our experience advising multinational companies, many of these conflicts do not arise from bad faith or intentional misconduct. Instead, they arise
Continue readingWhy Using an Uncontrolled & Monitored Korean Local Director/Representative Director Is Dangerous for Foreign Investors in Korea
Foreign investors entering Korea are often told they “need a local director,” “because that’s how things are done here. On paper, this looks harmless. In reality, appointing a representative director, sole director, or director you do not genuinely supervise or control can be legally and commercially dangerous. “Local Director” Has Full Duties and Liabilities In Korea, the law makes no distinction between a “nominee” director and any other director. If you are on the board, you owe the full suite of fiduciary and statutory duties, regardless of
Continue readingShareholder Rights Disputes under Korean Law: Key Korean Supreme Court Cases
Shareholder disputes in Korea often revolve around a few recurring issues. The primary jurisprudence on shareholder disputes in Korea pertains to access to information, the duty and liability of directors, the fairness of control-related issuances, and exit/value protection through appraisal rights. For more information on Korean Corporate Law, please see: IPG Legal’s Korean Corporate Law and Compliance Archive. Below is a practical roadmap and guide based on recent and leading Korean Supreme Court holdings. Access to Information: Books & Records (KCA art. 466) in Korea In Korean
Continue readingKorean Human Resources and Labor Law Policy Shifts under President Jae Myung LEE Administration
We shall, under the President Lee Administration, see more labor-friendly laws and policies. Here is a list of the most noteworthy issues that are being talked about among the legal and business communities in Korea. For more articles on Korean Labor Law, please see: IPG Legal’s Labor & Employment Law Archive. Individual Labor Relations Amendments in Korea under the President Lee Administration The administration’s labor policy platform introduces several core changes likely to affect employment terms and workplace compliance obligations. Key developments include: 1. Abolition of the
Continue readingThe “Yellow Envelope Act” of Korea: Key Legal & Policy Considerations in Korea’s Proposed Labor Reform
The so‑called Yellow Envelope Act is a pending amendment (update: law was passed in August 2025) to Articles 2 and 3 of Korea’s Trade Union and Labor Relations Adjustment Act, currently under active deliberation in the Korean National Assembly. The amendments are supported by the Democratic Party of Korea (DPK) and labor unions. The bill seeks to expand union protections and significantly limit employers’ ability to pursue damages claims against workers for strike‑related losses. The amendment is named after civic donations made in yellow envelopes to support
Continue readingKorean Shareholder Disputes on the Rise at Courts Throughout Korea
In South Korea, IPG Legal has seen over the last few years an increase in shareholder disputes, particularly concerning management control and corporate governance issues. IPG Legal is engaged by shareholders and companies in disputes in Korean courts and at the Korean Commercial Arbitration Board and other arbitration boards. Please see IPG Legal’s Korean Corporate Law Archive and IPG Legal’s Business Law Archive for more articles on Korean Shareholder Rights and Shareholder Disputes in Korea. Rising Number of Shareholder Disputes in Korea The most significant number of Korean
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