Korean Francchise Law Firms Archives

The Fair Transactions in Franchise Business Act (“Franchise Act”) and the Fair Transactions in Large Franchises and Retail Business (“LFBA”) are the major laws governing the relationship between a franchisor and a franchisee. Whereas the general provisions of the Monopoly Regulation and Fair Trade Act (MRFTA), Commercial Act and Civil Act, additionally, regulate the franchise relationship and other business relationships in Korea. See: Definition of a Franchise in Korea for the Definition and an explanation of Korean Disclosure Requirements. Franchise

Korea has seen its share of unscrupulous local franchisors. Issues with local franchisors have led to Korea adopting one of the most franchisee-friendly franchise laws in Asia. The first comprehensive franchise act in Korea was passed in 2002. This act was substantially amended in 2007 and some revisions were made in 2010. For a recent post on Amendments to Korean Franchise Law please see: Amendments of Korean Franchise Law for 2021. The Act on Fairness in Franchise Transactions may be