Korean Tax Incentives for 2020: Korean Tax Law Updates

Because of increased tax liabilities of many companies in Korea and because of perceived deteriorating market conditions, the Korean government implemented programs that may assist some SMEs, and larger companies doing business in Korea. Numerous conditions apply for each of these incentive/abatement tax programs below. The following is, only, intended as a basic explanation of the programs that may be available to businesses operating in Korea. Tax Support for Investments in Korea Investments in facilities that “improve productivity” shall receive an increased tax credit for a period over two years. For large businesses, there shall be an increase from 1% to 2%; medium-sized businesses, from 3% to 5%; and small businesses, from 7% to 10%. Relaxed standards for family business inheritance tax deductions. After-care periods shall be reduced from ten years to seven years. For seven years, the business is required to maintain its present headcount or aggregate payroll. Expansion

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Korean Arbitration Basics: Links to Relevant Resources in Korea.

IPG, over the next couple of weeks, shall be updating readers of the The Korean Law Blog on issues concerning arbitration in Korea and against Korean companies. We have posted over a dozen articles to date. We shall be posting more article on arbitration over the next couple of weeks. This present post is simply a few arbitration-related links in Korea. We shall be updating this list when more useful and credible information is available. Korean Arbitration Links Korean Commercial Arbitration Board Korean Arbitration Act Seoul International Dispute Resolution Center Korea Medical Dispute Meditation & Arbitration Center Articles on Korean Arbitration (Korean Law Blog) Substantive quality information on arbitration, in Korea, is not easily obtainable in English (and even in Korean), thus, we here at IPG felt the need to share more information on Korean arbitration. If anyone has any topics that are of interest, please Contact Us. We plan

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Korea prepares itself for Big Data-driven 4th Industrial Revolution: Korean Data Protection Laws Revised

On January 9, 2020, the National Assembly of Korea passed the “Three Data Act” of Korea. Implementation of the Act shall begin in June of 2020. The Korean Three Data Act iterates protections for, in general: personal information; information and communication; and business & individual credit information. IPG shall be writing more on this data protection issue over the next couple of months, please check back for more details. Three Data Act of Korea According to an article entitled the “Major Revisions and Significance of The Three Data Act” from the Legal Times, there are four major changes. “1. The personal information system shall be clearly divided into three sub-categories: personal information, pseudonym information, and anonymous information. Specifically, for pseudonym information, detailed regulations shall be established. 2. The Personal Information Protection Commission’s role shall be changed to a unified supervisory organization over all personal information. 3. All provisions related to

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Expanding your business into Asia? Use Korea as a Test Bed

So you want to expand into China, Japan, Korea, Southeast Asia (Asia)? We here at IPG suggest considering Seoul, Korea as a Test Bed for your Asian expansion. The following article’s focus is on Luxury Goods and Fintech, but IPG believes that the Korean Market is, also, an excellent stepping off point for other industries including F & B, Defense, Franchise, Automotive, High Tech, New Tech, Retail and Fourth Industrial Revolution industries. Another article that may be of interest, that we posted a few years back, is an article on Using Korea as a Test Market for Asian Expansion: The Facebook Example. If you have any questions, we are always here for a consultation. Korea as a Test Market/Test Bed for your Company’s Asian Expansion Many savvy companies have, successfully, utilized the Seoul, Korean market to test the Asian waters. For example, luxury powerhouse, Louis Vuitton, opened a uniquely designed

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BCCK Christmas Lunch 2019

Through the Christmas Lunch 2019, the British Chamber of Commerce in Korea (BCCK) lived up to its claim that “even Santa knows it’s the best event in Seoul.” The BCCK event was comprised of the whole package: festive food, drinks, music, games, gifts, an auction and sing-alongs. IPG proudly won three charity prize auctions and Sean Hayes, attorneys from IPG, guests and friends of IPG attended the event and are looking forward to more events from the BCCK this coming year. Setting Christmas “jumpers” and colorful “trousers” (the British way of saying sweaters and pants:) as this year’s theme brightened up the whole atmosphere and increased the level of merriment. The BCCK is a non-profit organization promoting the development of British trade, commerce and investment in Korea through its business services and networking opportunities. It is, also, encompasses a great group of people. Refer to the BCCK website for more

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Deutscher Club Seoul: Christmas Dinner 2019

As Christmas day is nearing this holiday season, numerous Christmas events are taking place around the city of Seoul. One of the best events that we at IPG Legal are proud to be a corporate sponsor of this event by the Deutscher Club. The Deutscher Club Seoul (the German Club Seoul) once again organized a ‘Weihnachtsdinner’ (Christmas dinner), celebrating the season with good drinks and food. The Deutscher Club created a great platform for people with a common interest to come together and partake in events around Seoul. Besides festivities, the Deutscher Club Seoul also enables its members to discover Seoul culturally through various organized events. Visit Deutscher Club for more information. We, highly, recommend all interested in Germany, the German language and meeting a cadre of great individuals to consider the event.

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52-Hour Workweek Delayed in Korea for SMEs: Korean Labor Law Update

The Korean government delayed the implementation of the 52-hour workplace system for certain small and medium size companies. This System is intended to apply to all companies in Korea and mandates that no employee may work for an employer for more than 52-hours in any one week. The Ministry of Employment and Labor of Korea announced, on December 11, 2019, that the 52-hour workplace system is suspended for SMEs (Employers with less than 300 workers) until the end of 2020. The Korean Ministry of Employment and Labor made the announcement, because of fears that the measure may harm these businesses. We are of the opinion that because of recent changes in the enforcement of Korean labor laws, it is advisable to revise company employment rules, agreements and have a compliance audit for your company in Korea. If you would like a call with an attorney at IPG, please schedule a

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Definition of “Ordinary Wage” in Korea: Korean Employment & Labor Law Basics

The courts of the Republic of Korea, for years, has struggled to find a consistent interpretation of an “Ordinary Wage.”  The definition of Ordinary Wage, under Korean Law, was clarified by the Korean Supreme Court in two decisions handed down on December 18, 2013.  The calculation of Ordinary Wages is important, since it is utilized to calculate statutory entitlements, and thus has an impact on the aggregate amount of contributions necessary to be paid to employees. For example, according to Article 56 of the Korean Labor Standards Act, an employer must pay 50% of the Ordinary Wage plus the Ordinary Wage for overtime, night and weekend work performed by the employee. Because of the potential for a large unknown future liability, this issue became the most significant issue, in the last few years, among domestic and foreign employers in labor and employment law in Korea. The basic Korean test is

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Amendment to Korea’s Intellectual Property Registration System: Korea IP Law Updates

South Korean organizations, companies and startups will, likely, in the near future experience a quicker and increasingly more efficient Patent and Intellectual Property Registration System in Korea and internationally based on developments within the IP5. Top IP officials in Korea are gearing up, in order to help South Korean organizations, companies and startups register their Intellectual Property more efficiently.  It seems like the effort is a serious attempt to expedite approvals and lesson application burdens for those doing business in Korea. IP officials from Korea, the United States, China, Japan and the European Union (a.k.a IP5) recently gathered in Incheon and asserted that they shall utilize A.I. technology and other future advances to improve the worldwide Patent Application System. To accomplish this objective, IP5 consented to organize a research team, containing Patent and IT specialists from these four countries and the EU. This team will start working on an A.I.

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Korea’s New Electronic Passport Without Resident Registration Number in 2020

The Amendment to the Korean Passport Act introduces a new Korean Electronic Passport. The passport excludes the Resident Registration Number and establishes a new system in order to ease administrative work of the government. This Amendment shall become effective in 2020. The Passport Act of the Republic of Korea According to Art. 7 Passport Act every Korean passport shall include: Type of passport; Issuing state; Passport number; Date of issuance and expiration; Issuing authority; Name of the passport-holder; Nationality of the passport-holder; Gender of the passport-holder; Date of birth of the passport-holder; Resident registration number of the passport-holder; and Photo of the passport-holder; Due, facially, to protect personal information, the Korean Foreign Affairs and Unification Committee declared the low importance of the inclusion of a Korean Resident Registration Number in Korean passports. Therefore, the Amendment excludes the number from Korean passports. Highlights of the Amendment to the Korean Passport Act

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Korean Immigration Law: Challenging a Korean Immigration Deportation/Exit Order in Korea

Being convicted of a crime in Korea, may lead to deportation.  If you are issued a deportation/exit order from the Korean Immigration Service, you do have avenues to reverse this deportation order within the courts.  Korean Immigration Law is rapidly changing – please check back to The Korean Law Blog for the latest updates from Korean Immigration lawyers from IPG’s Korean Immigration Law Team. The Courts in Korea have jurisdiction to review all exit/deportation orders issued by Korean Immigration.  Korean courts will look, generally, to whether: A.  The order of Korean Immigration complies with the law; and B.  Whether Korean Immigration has abused its discretion. Under Korean law, Immigration Services of Korea has broad power in the issuing of deportation and exit orders.  Korean Immigration law imposes restrictions on actions by Korean Immigration under certain visa categories.  If Immigration in Korea complied with Korean law, a Korean Immigration’s order may,

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Safety Measures in Korean School Buses in Korea via the Amended Road Traffic Act of Korea

The Amendment to the Korean Road Traffic Act (hereinafter as “ Korean RTA”) is in force since March 2019 and shall generally increase the safety for children in school buses in Korea. The Amendment was a reaction to an accident that occurred with in school buses, including children, which got physically harmed or even died. An infamous incident involved a young child that left unattended in a bus and died because of, among other things, heat exhaustion. Korean RTA drastically changed, the following brief snippet is, only, the tip of the iceberg. If you are running a business that transports children, we, highly, recommend having your law firm in Korea walk you through this law. Two Highlights of the Amendment to the Korean Road Traffic Act 2019 “A driver of a school bus for children shall operate a device that verifies that the discharge of children from the bus has

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Über IPG

Unsere weltweit-erfahrenen und lokal-vernetzten englisch-sprachigen koreanischen Rechtsanwälte und Business Professionals unterscheiden sich bewusst von der Menge. Wir lieben es an den kompliziertesten und umstrittensten Rechtsfällen in Korea zu arbeiten und genießen es besonders vorausschauende und effizient gewiefte Rechtsberatung zur Verfügung zu stellen. Bewusst anders Wir unterscheiden uns bewusst von anderen koreanischen Rechtsanwaltskanzleien. Koreanische Rechtsanwaltskanzleien werden oft für ihren Mangel an Bereitwilligkeit oder der Fähigkeit, eine effiziente, proaktive und konfliktlösende Rechtsvertretung für Klienten zur Verfügung zu stellen, kritisiert. Klienten und internationale Rechtsanwaltskanzleien kommen oft zu IPG, nachdem sie diese „koreanische Realität“ erlebt haben. Unsere Firma und ihre koreanischen und internationalen Rechtsanwälte wurden von führenden rechtlichen Ratingagenturen wegen ihrer starken lokalen Vernetzung, ihres modernen Fall-Managementsystems und ihrer realen vor Ort gewonnen internationalen Rechtserfahrung gepaart mit einer intensiven Leidenschaft für Erfolg anerkannt. International bewertet Unzählige internationale rechtliche Ratingservices haben unsere Anwälte als führende Anwälte im Bereich Wirtschaftsrecht, Zivilprozess, Entertainmentrecht, Franchiserecht und Strafverteidigung anerkannt.

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Über den Autor: Sean Hayes

Sean, und seine Anwaltskanzlei, werden oft vorzugsweise gegenüber ubiquitär koreanisch-basierten Anwaltskanzleien gewählt, wenn konfliktfreie und aggressive Rechtsvertretung für den Erfolg essentiell ist. Die Artikel in diesem Blog werden von Sean Hayes, ehemaligen Richtern, erfahrenen koreanischen Anwälten und anderen Anwälten von IPG für Sie zur Verfügung gestellt. Der New Yorker Anwalt Sean Hayes, als Sohn eines irischen Vaters und einer italienischen Mutter, wuchs sowohl in Connecticut und New York auf. Er ist von amerikanischer und italienischer Nationalität und permanenter Einwohner in Korea. Er hat seine rechtliche Ausbildung in Korea, den Vereinigten Staaten und im Vereinigten Königreich erhalten. Sean Hayes ist der erste nicht-Koreaner beschäftigt im koreanischen Gerichtssystem (koreanisches Verfassungsgericht) und einer der ersten nicht-Koreaner als reguläres Vollzeit-Mitglied einer koreanischen Rechtsfakultät. Sean ist bekannt für seine über 16-jährige rechtliche Berufserfahrung, für seine aggressive Anwaltschaft und redliche NY-stylische gewiefte Rechtsberatung. Sean arbeitet mit einem Kader erfahrener und vernetzter ausgeschiedener Richter, Staatsanwälte, interne Rechtsanwälte,

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Korean Act on Special Cases Concerning the Establishment and Operation of Internet Banks

In September 2018 the Korean National Assembly passed the Korean Act on Special Cases Concerning the Establishment and Operation of Internet Banks (hereinafter as “Act on Internet-Only Banks”), which is in force since January 2019. The major facial intent of the Act on Internet-Only Banks is to “…encourage innovative enterprises to enter the financial market while laying the legal framework for the convergence of information and communications technologies (ICT) with financial services, and the creation of new economic growth drivers.” One of the main impetus for the Moon Administration related to this Act was to allow individuals and companies that may have a more difficult opportunity to obtain credit to obtain credit. The foregoing is, only, intended as a brief teaser and not anything more than to provide a basic understanding of this Act. Korean Act on Special Cases Concerning the Establishment and Operation of Internet Banks 2018 “Internet Banks”

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Sean Hayes ranked a Top 100 Lawyer for his work in South Korea by Asia Business Law Journal.

IPG is proud to announce that Sean Hayes is awarded the honor of being one of the Top 100 lawyers working in South Korea by the Asia Business Law Journal. Sean is, also, ranked a top attorney in numerous other leading rankings. A client noted to the journal that Attorney Sean Hayes is: “proactive, kind and focused on our industry and really got to know our business.” Thanks to the clients that recognize our hard work and thanks to our lawyer and paralegal team at IPG for making me look better than I really am. I am nothing without you. The Asia Business Law Journal is a leading legal journal dedicated to legal practitioners working in Asia. Sean HayesIPG LegalTel: 82 70 7847 9050Email: [email protected] Key practice areas: Franchisors; defence companies; chemical companies; industrials; and startups ExperienceCon. Court of Korea, Research OfficerKookmin Univ., Law ProfessorSeoul National University, Adj. professorKorea Times, Columnist

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Success in Life & Business in Korea by Senior Adviser to IPG

The most important lesson I learned from the Peace Corps was an inner sense of humility.  By my naturally contrarian nature, I have mixed feelings about having once been a Peace Corps volunteer in Korea. For example, I try to focus on being an international business development consultant, but every so often when a newspaper or magazine discovers I served in Korea during the 1970s as a Peace Corps volunteer, too often the reporter wishes to focus on my past rather than what I’m doing 30 or more years later. Frankly speaking, I want to use the reporter as much as the reporter wishes to use me. The reporter often wants a human interest story, and I want some free publicity for my business. Usually, what is printed does nothing for my business. But free publicity is still free publicity, so I play along. But all of this ends up

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