Supreme Court Affirms Company’s Vicarious Criminal Liability in Trade Secret Misappropriation Case
Key Takeaways The Korean Supreme Court affirmed the vicarious liability of a Taiwanese company for criminal trade secret misappropriation committed by its Korean employees. The decision recognized Korean court’s jurisdiction over the Taiwanese corporation for a crime committed by its Korean employees based on the vicarious liability provisions of the Korean trade secret law. Foreign …
Government Announces Policy to Abolish Breach of Trust Crime and Continue Efforts to Amend the KCC
The government and the Democratic Party of Korea (the “DPK”) continue to promote amendments to the Korean Commercial Code (the “KCC”). Following the mandatory cancellation of treasury shares, they are now considering amendments to the criminal liability framework concerning duty of care and other fiduciary duties of directors and management, namely the abolishment of breach …
Regulatory Trends on Treasury Stock and Impact on Corporate Governance Restructuring
The amendment to the Korean Commercial Code (the “KCC”) promulgated on September 9, 2025 (the “Second Amendment to the KCC”), which introduced mandatory cumulative voting for large-scale listed companies and expanded the separate appointment of audit committee members, has contributed to the transparency of the board of directors and audit committee operations. In the case …
Introduction of Directors’ Duty to Protect Shareholders’ Interests and Other Changes to Regulatory Framework on Corporate Governance
The National Assembly passed the first amendment to the Korean Commercial Code (the “KCC”), expanding the fiduciary duties of directors to include the protection of shareholders’ interests (the “First KCC Amendment”) on July 3, 2025.
Key Antitrust and Competition Policy Directions of New Administration
On June 4, 2025, President Lee Jae-Myung commenced his five-year term as the 21st President of the Republic of Korea. During his inaugural speech, President Lee emphasized his commitment to building a market economy ecosystem based on fairness and shared prosperity.
“Yellow Envelope Act” Passes National Assembly Plenary Session
On August 24, 2025, the National Assembly passed the amendment to the Trade Union and Labor Relations Adjustment Act (the “TULRAA”), commonly known as the “Yellow Envelope Act.”
Status of Responsibilities Map Pilot Program for Financial Investment Companies and Insurers
The financial regulators recently provided a preliminary consultation on the responsibilities map to 53 large financial investment companies and insurers (each with at least KRW 5 trillion in total assets or at least KRW 20 trillion in assets under management), following earlier consultations with 18 financial holding companies and banks, and announced the major deficiencies …
Amendment to E-Commerce Act Strengthening Regulations on Dark Patterns Took Effect
On February 14, 2025, an amendment to the Act on the Consumer Protection in Electronic Commerce (the “E-Commerce Act”), which strengthens regulations on dark patterns, went into effect, along with related amendments to the Enforcement Decree and Enforcement Rules of the E-Commerce Act (the “Enforcement Regulations”). In particular, the amended Enforcement Regulations (i) specify obligations …
Expected Changes to Corporate Governance Policies and Regulations Following Presidential Election
On June 4, 2025, Lee Jae-myung was inaugurated as the 21st President of the Republic of Korea. The new administration announced several pledges and policy statements during its presidential campaign, and on July 3, 2025, the National Assembly passed the proposed amendments to the Korean Commercial Code (the “KCC”), which provide for (i) a broadened …
MOEL Issues Revised Labor-Management Guidance on Ordinary Wage in Response to Supreme Court’s En Banc Decisions
On February 6, 2025, the Ministry of Employment and Labor (the “MOEL”) released an updated labor-management guidance on ordinary wage (the “Guidance”) in response to the recent Supreme Court en banc decisions overruling its previous position on ordinary wage. The Guidance aims to clarify the newly established legal principle on ordinary wage and mitigate potential disputes and …