In a recent decision by the Korean Supreme Court, the Court clarified how a statute of limitations tolls in Korea in criminal cases. The Supreme Court of Korea held that when prosecutors amend an indictment to add related charges, the statute of limitations should be determined based on the date of the original indictment rather than the date of the amendment of the indictment. On January 15, 2026, the Second Criminal Division of the Korean Supreme Court (Chief Justice Kwon Young-jun) overturned an appellate court decision that
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President Lee Proposes Major Changes to South Korean Prosecution and Budget Drafting Systems
On September 7, 2025, the President Lee Administration announced a plan to overhaul two of the country’s most powerful state functions: prosecution and budget drafting. The proposals, facially, seek to: (i) dismantle the existing prosecution service by splitting investigation and indictment into separate bodies, and (ii) remove budget-drafting authority from the Ministry of Economy and Finance (MOEF) to a newly created independent budget agency. The Lee administration frames this reform as a combination of decentralization and modernization. The Lee Administration claims that this plan is better suited
Continue readingKorean Patent Act, Korean Utility Model Act, Korean Trademark Act, and Design Protection Act of Korean Amendments for 2025
In December 2024, the National Assembly of Korea passed amendments to the Korean Patent Act, the Korean Utility Model Act, the Korean Trademark Act, and the Korean Design Protection Act. These amendments were promulgated on January 21, 2025, and will take effect on July 22, 2025. For more information on Korea’s Intellectual Property Law, please see: IPG Legal’s Intellectual Property Law Archive. Amendments to the Korean Patent Act and the Korean Utility Model Act The Korean Patent Act and Korean Utility Model Act have been criticized by
Continue readingUsing Korea as a Test Bed for Asian Expansion: Look to Facebook
IPG Legal has advised, on many occasions, clients to look to South Korea for their Asian expansion prior to entering more expensive and difficult Asian markets. Hey Facebook seems to agree in an article entitled: Facebook uses Korea as Test Bed. This is a repost of article from nearly two decades ago. China is becoming even more difficult and much of SE Asia is not becoming more transparent—Korea is an excellent place to test the Asian waters. The Korea Herald has an interesting article that quotes the
Continue readingLiability of Persons who have Lent their Names for Korean Business Transactions
In Korea, the person who is actually the subject of rights and obligations, often differs from the nominee such as the holder of licenses or business registrations. Sometimes those with assets use these nominee/proxies to attempt to avoid liability. As such, under certain conditions, a counterparty to a transaction is protected, under the Korean Commercial Act, by acknowledging the liability of not only the party to the transaction, the name borrower, but also the nominee (name lender). See: Korea’s Real Name Transaction Act Strengthened for additional details on nominee
Continue readingKorean Cargo Claims under Korean Maritime Law
If you’ve ever wondered how to bring cargo claims under the Maritime Law/Shipping Law in Korea when South Korea is not a signatory to any international conventions governing the shipping of goods by sea, such as the Hague-Visby, Hamburg, or Rotterdam conventions, continue reading to find out. For information on arresting a ship in Korea please see: Arrest/Attachment of Ships at Korean Ports: Maritime Liens in Korea. And for an article on releasing an arrested ship please see: Releasing an Arrested Ship in Korea. It is true
Continue readingIs a Non-Korean Employer Obligated to Pay Severance Pay under Korean Law?
Severance Pay is a payment which the employer is required to pay an “employee” for a retiring, terminated or resigning employees that works for a company in Korea for, at least, one year. The reason for termination, retirement or resignation does not effect the applicability of the severance requirement. Even an employee who is fired due to fault can claim severance pay under Korean law. Severance pay is a statutory liability of the employer. It doesn’t matter whether an employment contract provides the severance pay clause or
Continue readingRight Against Self-Incrimination in Korea
In a Korean trial known as the “Namsan 300 Million Won Case,” two prominent figures, former Shinhan Bank Chairman Shin Sang-hoon and former Shinhan Bank President Lee Baek-soon of Shinhan Financial Group, were acquitted on charges of perjury. The judgment has sparked controversy and raised important questions about the status of witnesses when they themselves are criminal defendants in a case in Korea. Shinhan Bank is one of the largest banks in Korea. Background of the “Namsan 300 Million Won Case” The case revolves around allegations that
Continue readingWhat Should I do if I Receive a Korean Summons for a Criminal Investigation in Korea?
CAN KOREAN POLICE ISSUE AND ENFORCE A SUMMONS EVEN WHEN THE SUSPECT RESIDES ABROAD? Yes. The Korean Criminal Procedure Law applies to foreigners who have committed crimes within Korea as well as those who have committed crimes against residents of Korea while residing outside of Korea. Upon suspicion of a crime, the Korean police and Korean prosecution may move to demand the foreign suspect to attend an investigation in Korea. Thus, typically, the Korean Prosecution Services issues a summons. The summons may be issued for a suspect
Continue readingProposed 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 a public notice period that lasts through
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