Twitter Logo Youtube Circle Icon LinkedIn Icon

Publishing firms

Press releases and law firm thought leadership

This page is dedicated to keeping readers informed of the latest news and thought leadership articles from law firms across the globe.

If your firm wishes to publish press releases or articles, please contact Shehab Khurshid on +44 (0) 207 396 5689 or shehab.khurshid@legalease.co.uk

 

Legal Developments Worldwide

Articles contributed by Bae, Kim & Lee LLC

View the listing for Bae, Kim & Lee LLC

[Legal Update] Proposed Amendment to Reduce Capital Gains Exemptions...

August 2017 - Tax & Private Client. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

The Ministry of Strategy and Finance announced its proposed tax law amendments for 2018 on August 2, 2017. This tax alert highlights the proposed change to the capital gains exemption currently available to foreign investors engaged in on-the-market transactions.

Korean tax authorities impose KRW 300 billion of withholding taxes on software license fees, looking

May 2017 - TMT ( Technology, Media & Telecoms). Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

  • Deeming Oracle US the beneficial owner, the Tax Tribunal upheld assessments against Oracle Korea on license fees paid to Ireland affiliate going back to 2008.
  • Tax judgment is now on appeal by Oracle to the administrative law court.

The Korean Tax Tribunal has affirmed National Tax Service (NTS) assessments totaling some KRW 300 billion (approx. USD 260 million) against Oracle Korea, as withholding taxes on software license fees paid to an Ireland affiliate (Oracle Ireland), on the basis that beneficial ownership was with Oracle Corporation (Oracle US). The NTS, in 2011 and 2015, imposed the withholding taxes based on the Korea-US tax treaty, which calls for a 15% withholding rate as opposed to no withholding under the Korea-Ireland tax treaty. The Tax Tribunal has upheld the NTS assessments, citing among other things Oracle US’s ownership of the software and control over the income, as contrasted with the minor role of Oracle Ireland.

RECENT COURT ORDER ON GOOGLE RELATED TO PROTECTING INFORMATION RIGHTS

March 2017 - TMT ( Technology, Media & Telecoms). Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Korean appeals court orders Google to disclose to Korean users what personal information Google passed to U.S. government.

A Korean appellate court has ordered Google Korea along with its U.S. parent Google Inc. (together, “Google”) to disclose to users of the Google search service, when they so request, the scope and status of the users’ personal information (including search records) that Google has provided to the U.S. government. The decision of the Seoul High Court, handed down in February (released in March) 2017, concluded that, notwithstanding the choice of California law in the terms of service, Google’s use and handling of information was subject to rights of the local users under Korean law, mandating disclosure to them of what was passed to third parties including the U.S. authorities – except to the extent the disclosure is prohibited under U.S. law.

[South Korea] Data Privacy Legal Update

September 2016 - Intellectual Property. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Proposed Amendment to the Enforcement Decree of PIPA

Following the amendments to the Personal Information Protection Act (“PIPA”) which took effect on March 29, 2016, the draft of the amendment to the Enforcement Decree was published for comment by the Ministry of Interior (“MOI”, formerly known as the Ministry of Government Administration and Home Affairs) on May 9, 2016. The draft Enforcement Decree provides the specifics of the newly amended PIPA. Key terms of the draft are summarized below.

Read more...

http://www.bkl.co.kr/upload/data/20160922/BKL-Legalupdate-20160922.html#.V-OMCIiLRhE

Brief Introduction to Issuing QIB Securities in Korea

August 2016 - Finance. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

To date, most issuance of bonds in the Korean capital markets has been focused on the public market, but in regard to issuance of bonds in the public market, there is an obligation to file a securities registration statement for investor protection purposes and there are broad disclosure obligations even during the period of secondary distribution and trading of such securities.

[South Korea] 2016 Proposed Tax Law Amendments

August 2016 - Tax & Private Client. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

On July 28, 2016, the Ministry of Strategy and Finance announced its proposed tax law amendments for 2016. According to the proposal, the revisions are aimed at increasing the engines for growth and promoting fairness in taxation in accordance with the mid- to long-term tax policy initiatives of the government. The proposed amendments are expected to come into effect on January 1, 2017 pending approval by the National Assembly.

Provided below is a highlight of some key proposed amendments.

Court Regards Tax Avoidance Purpose as a Primary Consideration in Determining Beneficial Ownership

August 2016 - Tax & Private Client. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

The Seoul Administrative Court recently ruled that a Hungary-based subsidiary ("HungarianCo") - set up in 2010 by a Dutch Motion Picture Licensing Entity ("Dutchco") to hold exclusive rights in distributing motion pictures produced by the group company in Korea, Japan, Israel and Hungary - was not the beneficial owner of royalty payments made by a Korean entertainment and motion pictures distributor ("KoreaCo") for rights to distribute motion pictures in the Korean market. Although HungarianCo had substantive physical presence in Hungary, the court held that based on an overall consideration of the purpose for setting up the entity in a certain jurisdiction, the nature of the activities performed by the employees, scope of transactions undertaken and actual flow of payments, DutchCo was the beneficial owner to the royalty payments and applied the royalty withholding tax rate of 15% pursuant to the Korea-Dutch tax treaty.

[South Korea] Extension of Corporate Restructuring Promotion Act

June 2016 - Corporate & Commercial. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

By Dong Woo SEO, Jeena KIM, Annie Eunah LEE and Kyu Sang CHUNG

Related Practice Areas: Bankruptcy & Corporate Restructuring

May 16th, 2016

The Corporate Restructuring Promotion Act (“CRPA”) which facilitates out-of-court restructuring for participating financial creditors and “insolvency-symptomatic company” (or “distressed company”, defined in the CRPA as a company unable to repay its debt without external financial assistance) is once again in place. The latest CRPA which came into effect on March 18, 2016 is the fifth revived version of the original CRPA enacted in 2001. As in the case of earlier CRPAs, the new CRPA contains a sunset clause and is scheduled to expire on June 30, 2018. The subordinate regulations to the new CRPA, i.e., the Presidential Decree and the Rules on Supervision of Financial Institutions to Promote Corporate Restructuring also came into effect on April 29, 2016 and May 3, 2016, respectively.

Further Korean Data Privacy Rules Announced

March 2014 - TMT ( Technology, Media & Telecoms). Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

 
 
 
 
Draft regulations in follow-up to Personal Information Protection Act clarify scope and implementation of new requirements.
 

Further to the Personal Information Protection Act (PIPA), the comprehensive data privacy law passed in March 2011 which will take effect on September 30, 2011,1 the government has unveiled draft regulations to flesh out a number of the applicable requirements and standards. The drafts of the Enforcement Decree and the Enforcement Regulations, published on May 24, 2011, include significant requirements relating to data security, which, like other provisions, apply to any entity that handles personal information files for work purposes (referred to as “data handlers” below). Also now spelled out are various details concerning consent requirements, website sign-up rules, video camera restrictions, use of third party data handlers, reporting of leaks, and collective dispute mediation.

The draft regulations are subject to review, but seem likely to be adopted without much alteration before September 2011. Following is a summary of the main provisions.


1 See report on PIPA, including summary, in BKL Newsletter Spring 2011,
at pages 10-11.

Korean regulator bans short selling to stabilize financial markets

March 2014 - Finance. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Korean regulator bans short selling to stabilize financial markets
 

In a move to stabilize Korean financial markets that have been battered by last week's U.S. credit downgrade, the Financial Services Commission (FSC) announced on August 9, 2011 that it would impose a temporary ban on all short selling of listed securities traded on the Korea Exchange (KRX), including the main board KOSPI markets and secondary tech-heavy KOSDAQ markets.

On August 10, 2011, the KRX adopted the prohibition on short selling for three months (August 10 to November 9, 2011). At the height of the global financial crisis in 2008, a temporary ban on all short selling had also been imposed in an effort to prevent short selling from destabilizing the local bourse. In June 2009, the FSC lifted the ban at least on covered short selling of non-financial stocks.

Naked short selling is prohibited under the existing rules, so this temporary ban will have the effect of prohibiting all types of covered short selling of securities listed on the KRX such as stocks, convertible bonds, bonds with warrants, equity-linked warrants (ELWs), equity-linked funds (ETFs), warrants and beneficiary certificates (but not straight bonds).

Korean Regulator to Lift Short Selling Ban on Non-Financial Stocks

March 2014 - Finance. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Korean Regulator to Lift Short Selling Ban on Non-Financial Stocks
 

The Financial Services Commission (FSC) announced that the three-month ban on all short selling of listed securities traded on the Korea Exchange (KRX) will be lifted on non-financial stocks starting from November 10, 2011, while the ban will be maintained on financial stocks for the time being due to their greater vulnerability to external factors such as euro zone risks.

However, this remaining ban on financial stocks will not extend to short selling by liquidity providers to provide quotations, which will continue to be permitted.

On August 10, 2011, the KRX adopted a temporary ban on all short selling for three months following the U.S. credit downgrade.

 

See BKL Law Update August 11, 2011.

Korean merger control developments signal tighter review by regulators

March 2014 - EU & Competition. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

 
 

Capsule summary: Under amended business combination reporting rules effective from January 1, 2012, stock acquisitions by large companies will generally trigger prior review by the Korean Fair Trade Commission (KFTC). Other rule changes will allow a broader range of presumptively harmless transactions to use a simplified or fast-track merger review process, but at the same time the changes will permit closer scrutiny of anti-competitive effect in case of transactions that do not qualify for that process. Also, in a late 2011 ruling, the KFTC for the first time imposed corrective measures for an offshore business combination.

Tax treaty rates to apply to offshore investors only upon application including disclosure of benefi

March 2014 - Tax & Private Client. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Tax treaty rates to apply to offshore investors only upon application including disclosure of beneficial owners
 
New rules requiring prior information, subject to some exceptions, apply from July 1, 2012.
 
Under amendments to the Corporate Income Tax Act (CITA) promulgated on December 31, 2011, in order to have favorable tax treaty withholding rates applied to payment of Korean-source income (including dividends, interest and royalties) from July 1, 2012, the offshore beneficial owner of the income must first submit an application for such treatment to the tax withholding obligor (normally the income-paying Korean counterparty). In the case of an "offshore investment vehicle" or offshore fund serving as conduit for the income to beneficial owners,1 the fund must submit an application by its beneficial owners, together with an offshore investment vehicle report. Thus, the income-paying entity in Korea will have to obtain, up front, details of the beneficial owners-information that till now was sought, if at all, only by tax examiners after the fact.

As an exception, the application filing requirement will not apply to income from investment in overseas depository receipts of Korean issuers. As discussed below, other important exceptions have been proposed as part of the implementing regulations, but are yet to be decided.

more >>

 

1 An “offshore investment vehicle” is defined simply as an entity, set up overseas, that manages funds for investors and engages in investment by acquiring, disposing of and otherwise managing investment targets and distributing the proceeds to investors.

Proposed Rule Changes to Spur Korean Hedge Funds

March 2014 - Finance. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Planned changes to financial sector regulations expected to take effect September 2011
The Financial Services Commission (FSC) of Korea is poised to implement a slate of regulatory changes that will ease a number of the current constraints, and clarify standards, for the formation and operation of domestic hedge funds. First announced in draft form in late June 2011, the changes to the presidential decree promulgated under the Financial Investment Services and Capital Markets Act (FSCMA) are for the most part expected to be finalized in August 2011, and to take effect in September 2011. The stated aim is to spur growth in Korean hedge funds, known technically as "collective investment vehicles aimed at qualified investors." The new rules will broaden the scope of eligible investors; ease current hedge fund operating limits such as the leverage cap; finalize eligibility criteria for hedge fund managers; and permit a wider range of prime broker activity, including securities lending for short sales.

The rules remain subject to revision as they undergo final government review. The anticipated key rules, however, are as follows.
 
 
 
 

BKL Newsletter - Summer 2011

September 2011 - Corporate & Commercial. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

KOREAN LAW DEVELOPMENTS

CORPORATE, TAX / ADMINISTRATIVE LAW, ANTITRUST / FAIR TRADE, DATA PRIVACY, SECURITIES, BANKING & FINANCING

BKL Newsletter - Spring 2011

June 2011 - Corporate & Commercial. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

KOREAN LAW DEVELOPMENTS

ANTITRUST, CORPORATE LAW, TECHNOLOGY, TELECOMMUNICATIONS, MEDIA & TECHNOLOGY

Further Korean Data Privacy Rules Announced

June 2011 - Intellectual Property. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Further Korean Data Privacy Rules Announced

Draft regulations in follow-up to Personal Information Protection Act clarify scope and implementation of new requirements.

Korea Passes Major Amendments to Company Law

May 2011 - Corporate & Commercial. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Revision of Commercial Code, to take effect in 2012, brings
significant flexibility in terms of equity structure, debt financing,
corporate consolidation and dividends; clarifies directors’ duties;
introduces new electronic registration for securities; introduces
new types of business entity

New Law to Help Pave Way for Hybrid Products and “Convergence” Industries

March 2011 - Corporate & Commercial. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Industrial Convergence Promotion Act seeks to expedite government clearances and provide stimulus for categorycrossing innovations such as smartphones.

Changes to Options Trading Regime

February 2011 - Finance. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

Regulators announce changes to options trading rules, in follow-up to plans announced in December 2010.

Appeals court affirms acquittal of company directors in prosecution for post-LBO capital reduction

February 2011 - Finance. Legal Developments by Bae, Kim & Lee LLC.

More articles by this firm.

M&A: Korean appeals court affirms acquittal of company directors in prosecution for post-LBO capital reduction and dividends