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
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Relocation of a Worker Based in Korea for Allegations of Stalking: Korean Employment Law Updates
A Seoul Administrative Court ruled that it is lawful for an employer, even before a stalking charge was adjudicated, to change an employee’s workplace when the employee is identified as the perpetrator of stalking against an alleged victim, provided that a report was filed with the employer. In May 2026, the 3rd Administrative Division of the Seoul Administrative Court ruled in favor of the Employer. Facts Seoul Administrative Court Holding The Employee, in short, argued that: “Taking personnel action on someone with the assumption they are a
Continue readingSK Hynix Injunction Against Employee Rejected by Seoul Central District Court
SK Hynix lost an injunction case seeking to enjoin a former employee from transferring jobs to Samsung Electronics (2025KaHap21284). SK Hynix did not appeal the decision, and the decision was finalized on January 20, 2026. For an article on the Korean Supreme Court precedent on the enforceability of Non-Compete Clauses, please see: Non-Compete Clauses in Korea Facts SK Hynix Restrictive Covenant Enforcement Case at the Seoul Central District Court Holding On January 9, 2026, a Seoul Central District Court dismissed SK Hynix’s application for an injunction enjoining a
Continue readingHiring a Korean Independent Contractor for Work in Korea
We receive many requests for drafting Korean independent contractor agreements, and we sometimes decide with the client that it is better to have a Korean distribution or agency agreement with a Korean company, because of uncertainty in Korean Labor & Employment Law and other reasons. Korea’s court decisions on Korean Labor Law are as predictable as the Korean weather, and the standard to determine if one is an independent contractor or an “employee” is as clear as a Beijing sky. For a further explanation of this issue, see: Korean
Continue readingCoupang Fulfillment Services in Korea Found Liable for Unfair Dismissal and Union Suppression by Seoul Administrative Court
Coupang, an e-commerce company with its primary business in Korea, was found to have committed unfair labor practices in violation of Korea’s Trade Union Law and unfairly dismissed a worker in Korea in breach of the Korean Labor Standards Act. Coupang has been accused, on numerous occasions, of labor violations by foreign and domestic employees working for Coupang. NOTE: For full disclosure, IPG Legal is engaged for cases against Coupang by executives working for Coupang in Korea. While IPG Legal is typically engaged by foreign companies doing
Continue readingKorean Supreme Court Rules that Samsung C&T Must Fulfill Collective Bargaining Obligations with Korean Metal Workers’ Union
The Supreme Court of South Korea has issued a landmark ruling requiring Samsung C&T to fulfill its collective bargaining obligations under law with the Samsung branch of the Korean Metal Workers’ Union (“Samsung Union”) for the period between 2011 and 2020. This decision clarifies the invalidity of the “Everland Union,” a counter-union created by Samsung C&T management, and enforces the company’s duty to engage in good faith collective bargaining with the Samsung Union. For more articles on Korean Labor Law, please see: IPG Legal’s Labor & Employment Law
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 readingConstitutional Court Upholds Special Tax Rules for Family Business Succession
On July 17, 2025, the Constitutional Court of Korea issued a significant ruling regarding the application of special tax exemptions for family business succession. In a unanimous decision, the Court held that certain provisions of the former Special Tax Treatment Control Act of Korea (Article 30-6, Paragraphs 1 and 2) do not violate the Korean Constitution, reaffirming the government’s authority to provide tax incentives for business succession while setting specific requirements through presidential decrees. The case is one of the many cases at the Constitutional Court upholding
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 Administrative Court Rules Legal Executive Not a “Worker” Under Korean Labor Standards Act
The Seoul Administrative Court dismissed a lawsuit claiming unfair dismissal by an in-house counsel and registered director in a landmark decision impacting the classification of high-ranking/high-paid corporate officials as “workers” under the Korean Labor Standards Act. The Seoul Administrative Court held that an in-house attorney who concurrently served as a registered director and earned over KRW 700 million annually is not considered a “worker” under the Labor Standards Act of Korea. IPG Legal successfully represented company executives in cases of unfair dismissal and successfully defended foreign capital-invested companies against similar
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