Korean Family & Inheritance issues, often, concern legal and tax issues of varying jurisdictions. In many cases, the nationality of the decedent (person who passes leaving an estate), residence of the decedent, location of the inherited property, and the nationality and residence of those inheriting the property shall dictate the law and the applicable taxes applied. In most cases, an experienced estate lawyer and tax professional are necessary to assist in avoiding inheritance and family disputes, lessen tax burdens, and navigate the transfer and disposition of inherited assets. Korean In ..read more

Our friends at the Korean Tax Blog drafted a post on Korean Start-up Business Tax Incentives. We, at IPG Legal, have written other articles on other incentives, grants, and Korean free trade zones that can be found with a search of this blog, however, we have regrettably neglected many tax incentives. With the increasing cost of doing business in Korea, the Korean government is stepping up and offering incentives for some startup businesses., mature businesses and also businesses wishing to establish regional offices in Korea. The post lists three major incentives. 1. Research and Developmen ..read more

IPG Legal has assisted clients in the process of setting up a corporate entity in South Korea. Yes, it can be complex and time-consuming, but getting started on the right food is, often, the most important part to a successful business in Korea. For a list of corporate forms in Korea, please see: Korean Corporate Forms under the Korean Commercial Code. It is advisable to seek, in all but the most exceptional of cases, the assistance of a law firm and accountancy firm to ensure compliance with all legal and regulatory requirements. Also, if you have a partner it is best to Do Your Due Diligence ..read more

An IPG Legal attorney was quoted by the Korea Times in a case in which a U.S. Army Veteran was negligently shot by a Korean police officer. IPG Legal prevailed in obtaining a civil damages award and also persuading the Korean Prosecution to indict the police officer responsible for the injuries. For a prior article on this issue please see: American Shot by Korean Police Officer. Attorney Jiwon MIN was quoted in the article. “It is meaningful that the court acknowledged the government’s responsibility for the lasting physical and mental injuries suffered by Samberg. However, attributing fault ..read more

A language supremacy clause dictates what language governs the interpretation of a contract. Many international contracts are drafted in multiple languages. However, because of the complexity of legal terms, lack of precision in certain languages, the nature of language translation, and other local realities it is best to choose a governing language to avoid the issue of an alleged discrepancy between the Korean and English-language versions of the contract. In most cases, we advise choosing English as the governing language in a Korean contract if one party is not a Korean party. The English ..read more

Reducing the headcount in Korea can be difficult, time-consuming, and costly without the use of an accountant and a proactive attorney. Article 24 of the Labor Standards Act of Korea governs the dismissals of employees for managerial reasons. This is the main applicable law for making an employee redundant. For a general article on terminating an employee in Korea please see: Terminating an Employee in Korea. For an employer employing “employees” in Korea to legally terminate under Article 24 of the LSA, the employer has the obligation to establish: An Urgent Managerial Necessity; That the em ..read more

The amended Commercial Code of Korea provides for “squeeze-out” rights for shareholders holding 95% or more of the shares of a company. This Korean law was promulgated in April of 2012. The law also provides for a right of minority shareholders of Korean companies to demand a “sell-out.” It seems possible, under the very vague wording of the amended clauses, for a sell-out to take place at the same time as a squeeze-out with the potential of conflicting appraisals and procedures. For a squeeze-out, in Korea, the majority shareholder must establish that: The squeeze-out is “necessary” to accom ..read more

My friends at the Korean Tax Blog have an article on some difficulties with banking in Korea. I recommend reading the article. The blog post notes, in part, that: “I have often received questions from foreigners about the banking system in Korea. Even for Koreans, it is notoriously complicated. Although difficult to adequately explain the nuances of Korean banking (and the numerous issues surrounding online banking caused by Internet Explorer), I offer you a general guideline for using our system. If you’re an Apple Lover, forget it! After completing your tax registration at a tax office, it ..read more

For some companies wishing to establish business with Korea, the use of a commercial agency relationship may be an ideal way to establish your business presence in Korea. However, this type of agreement comes with risk. Please see: Termination of an Agency Agreement in Korea. https://www.thekoreanlawblog.com/2020/08/distribution-agreement-termination-korea-law.html An agent relationship is often ideal when a company seeks to sell its products in Korea, but wishes to first evaluate and familiarize itself with the Korean market prior to establishing a distributorship relationship or establishin ..read more

My mother often told me, when I was much younger, to look both ways before crossing the street; carry an umbrella in the spring; and don’t go out alone in the dark. The advice can go a long way for Korean companies doing business outside Korea and for expats doing business in Korea. As we all know, Korean companies and many foreign companies lament over the fact that it is nearly impossible for Korean companies, with the exception of the most savvy and cash-flush mega-conglomerates, to enter the Chinese, Indian, and Southeast Asian markets without local partners if they intend to attempt to p ..read more