Lee & Ko > Seoul, South Korea > Firm Profile
Lee & Ko Offices
HANJIN BUILDING
63 NAMDAEMUN-RO, JUNG-GU
SEOUL 04532
South Korea
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Lee & Ko > The Legal 500 Rankings
South Korea > Banking and finance: local firms Tier 1
Lee & Ko’s banking and finance group provides a focused service for clients through its structured sub-teams that specialise in different areas of finance: acquisition, project, aircraft and shipping. The group advises both domestic and foreign commercial banks and financial institutions on a wide range of issues, including regulatory compliance, lending transactions, fintech, tax and trust business activities. Practice head Woo Young Jung has over 20 years of experience in ship finance and is supported by Yunjeong Seo in this space, along with other members of the team, including aircraft finance expert H.K. Helen Sohn, and Myoung Chul Kwak and Yeo Kyoon Yoon
who both have extensive experience in leveraged and acquisition finance.Practice head(s):
Other key lawyers:
Testimonials
‘We believe the Lee&Ko team is one of the best legal advisories in the world. It specialises in project finance, corporate finance, debt restructuring, and various other debt transactions. In our opinion, LK has the state of the art documentation skills in light of perfection.’
Key clients
BNP Paribas
JPMorgan Chase Bank
KEB Hana Bank
Kookmin Bank
Korean Air Co., Ltd.
Korea Development Bank
Korea Investment & Securities Co., Ltd.
Mirae Asset Daewoo Co., Ltd.
NH Investment & Securities Co., Ltd.
Samsung Securities Co., Ltd.
Shinhan Bank
Societe Generale
Standard Chartered Bank Korea Limited
Woori Bank
Work highlights
- Advised HDC Holdings Co., Ltd. on restructuring and financing for Seoul-Chuncheon Expressway.
- Advised NH Investment & Securities Co., Ltd. on financing for Hahn & Company’s acquisition of Korean Air’s in-flight meal and duty-free business.
- Advised Standard Chartered Bank (Hong Kong) Limited on financing for the construction of a high-capacity data center in Korea.
South Korea > Corporate and M&A: local firms Tier 1
Lee & Ko’s M&A group works in collaboration with other practices, such as tax and labour to deliver a full service offering to clients dealing with complex M&A transactions. It handles both domestic and cross-border mandates for a variety of industries and is experienced in handling work for major corporations and prominent private equity houses. Hyun Tae Kim is renowned for his expertise in deal structuring while Hyeong Gun Leehas extensive experience in private and public company mergers, stock purchases and asset sales. Sang Gon Kim has a focused M&A practice, specifically handling transactions in the financial and petrochemical industries, and co-heads the team with Kim and Lee. Kyungchun Kim and Ho Joon Moon represent major Korean global companies including Samsung and SK. Daehoon Koo has a niche practice in relatively rare types of transactions such as comprehensive share swaps and in-kind contributions while Sung Min Kim is an expert in fintech and start-ups.Practice head(s):
Other key lawyers:
Testimonials
‘The team is dedicated and experienced.’
‘Ho Joon Moon is the experienced M&A partner.’
Key clients
SK Engineering & Construction Co., Ltd.
Hahn & Company
Korea Development Bank, Asiana Airline
Skylake Investment
Hana Financial Investment Co., Ltd.
Hahn & Company Limited
LG Electronics
LG Household & Health Care
Hyosung Corporation
Key Foundry Co., Ltd.
KB Asset Management Co. Ltd.
Work highlights
- Advising SK Engineering & Construction on its acquisition of 100% stake in EMC Holdings, with a total deal value of approximately ₩1 trillion.
- Advised Hahn & Company, Korea’s leading private equity firm, in its signing of a business transfer agreement with Korean Air with respect to Hahn & Company’s acquisition of Korean Air’s in-flight catering and duty-free business for ₩990.6bn.
- Represented (i) Asiana Airline in its issuance of new shares to Korean Air for a total deal value of ₩1.8 trillion and (ii) Korea Development Bank (which holds the disposal authority of Asiana Airlines, Inc. as a creditor) in its acquisition of new shares and convertible bonds of Hanjin Kal, the ultimate holding company of Korean Air.
South Korea > Dispute resolution: local firms Tier 1
Lee & Ko’s dispute resolution practice consists of former Supreme Court judges as well as industry experts who provide a full-service offering that covers all major dispute areas, including tax, competition, insolvency and finance. In particular, the group has seen growth within the pharmaceutical and healthcare area, led by Yang Suk Han who oversees all life science-related litigation cases at the firm. Practice head Won Seok Ko leverages his many years of experience as a judge to successfully advocate for clients and is supported by the wider team that includes Seong Won Chang, who handles bet-the-company cases and commercial litigator Jae Heon Park.Practice head(s):
Other key lawyers:
Testimonials
‘They present reasonable measures to the client by analyzing and predicting the situation. When those experiences build up and lawsuits arise, I fully trust their advice.’
‘They are neither conservative nor aggressive. They advise clients in a reasonable way. Of course their costs are reasonable.’
‘They are all great, but I recommend Jae Heon Park. He is a good dispute settlement lawyer with a career as a judge.’
Key clients
Samsung Electronics Co., Ltd.
Hyundai Heavy Industries Co., Ltd.
Korea Shipbuilding & Offshore Engineering Co., Ltd.
Lotte Shopping Co., Ltd.
LG Chem Ltd.
Korean Air Lines Co., Ltd.
Kookmin Bank
Microsoft Corporation
Korea Land & Housing Corporation
SK telecom Co., Ltd.
Korea Development Bank
Samsung Fire & Marine Insurance Co., Ltd.
Changsin Inc.
KleanNara Co., Ltd.
Big Hit Entertainment Co., Ltd.
Intergraph Korea Ltd.
Mugunghwa Trust Co., Ltd.
Work highlights
- Represented the CEO of SK Chemicals, the largest chemical company in South Korea, in a criminal case concerning a humidifier sterilizing agent.
- Represented Gamma Nu against the Korea Exchange in a lawsuit seeking invalidation of the delisting. The first case in Korean history to conclude that a delisting decision made by the Korea Exchange based on an audit opinion was unlawful.
- Represented Pharmicell in a lawsuit seeking revocation of the Ministry of Food and Drug Safety (“MFDS”)’s decision to reject an application for a conditional license. The first case in which a rejection of a conditional license was disputed successfully.
South Korea > Insurance: local firms Tier 1
Lee & Ko’s insurance and reinsurance group is comprised of a diverse group of professionals dedicated to the insurance industry, including accountants, consultants, and former officials from the FSC, FSS, KFTC, Ministry of Economy and Finance, and the National Tax Service. The team works collaboratively with other departments, using a multidisciplinary approach to best serve client interests in regulatory, litigious and transactional matters. Its client base is wide-ranging, from domestic and foreign life and non-life insurers, to brokers and insurance industry associations. Jin Hong Kwon leads the group and handles the full spectrum of insurance-related issues. Kwon is supported by Sae Um Kim whose areas of expertise include life insurance, ‘suicide’ insurance and trade insurance.Practice head(s):
Other key lawyers:
Key clients
ABL Life Insurance Co., Ltd., formerly known as Allianz Life Insurance Co., Ltd.
Ace American Fire Marine Insurance Co., Ltd (Korea Branch)
AIA Group Limited (AIA Korea)
AIG (American International Group) Insurance Co., Ltd.
Allied World Assurance Company Ltd.
Allianz Global Corporate & Specialty
Allianz SE, Singapore Branch
Aon Korea Inc.
Aon Singapore Pte. Ltd.
Aon PLC
Arch MI Asia Limited
Arthur J. Gallagher & Co.
Assicurazioni Generali S.p.A. (Hong Kong)
AXA Life Insurance Co., Ltd.
Berkley Re
BNP Paribas Cardif General Insurance Co., Ltd.
BNP Paribas Cardif Life Insurance Co., Ltd.
Chubb Life Insurance Co., Ltd.
CNA Hardy
Compagnie Française d’Assurance pour le Commerce Extérieur
Corstone Asia
DB Insurance Co., Ltd.
DB Life Insurance Co., Ltd.
Euler Hermes Hong Kong Services Limited
Euler Hermes Korea Non-Life Broker, Co., Ltd.
Fusion Specialty Insurance Pty Ltd
General Insurance Association of Korea
General Reinsurance Corporation
Hanjin Busan Newport Co., Ltd.
Hanwha General Insurance Co., Ltd.
Hanwha Life Insurance Co., Ltd.
Heungkuk Fire Marine Insurance Co., Ltd.
Heungkuk Life Insurance
Hyundai Life Insurance Co., Ltd.
Hyundai Marine and Fire Insurance Co., Ltd.
ING Life Insurance Co., Ltd.
Jardine Lloyd Thompson (JLT) Asia Limited (now known as Marsh)
KB Insurance Co., Ltd.
Korea General Insurance Association
Korea Life Insurance Association
Korea Shipping Association
Korea Trade Insurance Corporation
Korean Reinsurance Company
Kyobo Life Insurance Co., Ltd.
LINA Life Insurance Company of Korea
Meritz Fire & Marine Insurance Co., Ltd.
MetLife Insurance Co., Ltd.
Mirae Asset Life Insurance Co., Ltd.
Munich Reinsurance Company, Korea Branch
Pacific Life Re
POSCO Engineering & Construction Co., Ltd.
RGA Reinsurance Company
Samsung Fire & Marine Insurance Co., Ltd.
Samsung Life Insurance Co., Ltd
Seoul Guarantee Insurance
SK Engineering & Construction Co., Ltd.
Sompo Japan Nipponkoa Insurance Inc.
Swiss Reinsurance Company Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Zurich Insurance Group
Work highlights
- Assisted Hanwha Life with respect to its expansion into new areas of business by providing advice on its potential adoption of a new business model so-called “Lifestyle Care Platform (LCP)” from a compliance perspective.
- Advised Chubb with respect to setting up a Korean subsidiary as a general agency in furtherance of its solicitation and marketing activities in Korea.
- Provided Kyobo with legal interpretations and guidelines on the Act on Protection of Financial Customer expected to serve as a leading reference point within the Korean insurance market.
South Korea > Intellectual property: local firms Tier 1
Lee & Ko’s team of partners, associates and patent attorneys work together at an ‘exceptional level of efficiency’. The team advises a wide range of clients in patent and technology-related matters; in the patent space, the group represents multinational companies from various sectors including pharmaceutical, chemical and mechanical. The group is particularly strong in trademark litigation and has set precedents in the Supreme Court. Un Ho Kim leads the team and is an expert in all areas of IP, with specific knowledge in patent infringement and invalidation cases. The team is ‘nothing short of exceptional’ and includes a number of key practitioners; Young Mo Kwon focuses on patent technology and licensing; Choong Jin Oh is well known for setting legal precedents that are applied to high-technology industries such as mobile game; Keum Nang Park is a licensed pharmacist and leverages this expertise in her practice; and Hui Jin Yang is a life science expert. Jae Hoon Kim is also recommended.Practice head(s):
Other key lawyers:
Testimonials
‘Our experience with Lee & Ko has been nothing short of exceptional. In particular, we have been impressed with their round-the-clock responsiveness, sharp legal minds and strategic thinking.’
‘Lee & Ko’s team of partners, associates, and patent attorneys worked together as one body in a remarkably smooth, effective, and cost-saving way. This is an exceptional level of efficiency and seamless coordination. ‘
‘Lee & Ko has shown the utmost excellence among the global firms we have worked with when it comes to their efficient performance and high quality work.’
‘We highly appreciate and value the work of Jae Hoon Kim, the head partner who oversaw the entire litigation, and Hayoun Chan, the working-level partner in charge. John Kim is also a noted name. They focused on both the details and the big picture, whilst keeping in mind the commercial imperatives. Jae Hoon is a legendary figure in the Korean IP world – he makes himself available all the time and provides insightful inputs. John has the advantage of being fluent in English, which makes him an asset to the team. He is also well versed with US litigation and practice, and is able to explain Korean practice and concepts in terms that are familiar to common law lawyers.’
‘Hui Jin Yang – best patent litigator/counsel in Korea regarding pharmaceuticals, biotechnology and life sciences.’
‘Choong Jin Oh – highly experienced former judge of the Korean Patent Court and exceedingly knowledgeable of Korean patent law practice.’
Key clients
Ericsson-LG Co, Ltd.
Novartis International AG
JNC Corporation and JNC Petrochemical Corporation
Big Hit Entertainment Co., Ltd.
LG Chem Ltd.
Daewoong Pharmaceuticals Co., Ltd.
Bristol Myers Squibb
Bayer AG
Williams-Sonoma, Inc.
Actial Farmaceutica Srl
Giorgio Armani S.p.A.
YG Entertainment Inc.
LG Household & Health Care Ltd.
Coupang Corp.
Kakao Corp.
OCI, Inc.
Naver Corp.
Manda Fermentation Co., Ltd.
Samsung SDI Co., Ltd.
Hanwha Solutions Corp.
Marriott International, Inc.
PI Advanced Materials Co., Ltd.
Marriott International, Inc.
Celgene Corp.
LG Electronics Inc.
Simplot Plant Sciences
Kakao Page Corp.
KPX Chemical Co., Ltd.
Astellas Pharma Inc.
Work highlights
- Represented Ericsson-LG Co., Ltd., a leading electronics company, in defending a patent infringement action filed by a university.
- Represented and advised Big Hit Entertainment Co., Ltd., a Korean major entertainment company, in procuring the first-ever decision to recognize the right of entertainment companies against free-riding of artists’ fame and entertainment company’s effort and investment.
- Assisted JNC Corporation and JNC Petrochemical Corporation, a leading chemical manufacturer, in upholding the validity of its patent that uprooted the long-standing standard for inventiveness.
South Korea > International arbitration Tier 1
Lee & Ko’s core areas of expertise include M&A disputes, general commercial disputes, sports arbitration and life sciences. It has also continued to grow its capabilities in the construction sector, with David Kim and Sanghoon Han co-chairing the international construction dispute resolution group. Its wide-ranging expertise has seen the firm become ‘one of the best arbitration practices’, according to clients and is co-led by the ‘excellent’ Robert Wachter, a leading oral advocate. Sean Sungwoo Lim jointly leads the practice and is a member of several leading arbitration associations, maintaining a prominent reputation for his work in this area. Sunyoung Kim is also recommended for her expertise in energy and construction arbitration cases.Practice head(s):
Other key lawyers:
Testimonials
‘Very efficient legal team with a diverse background. Truly impressed by their holistic approach, considering all details of the case but concentrating and emphasizing the key issues. ’
‘Sean Lim – strategic mastermind
‘Robert Wachter – exceptionally sharp, articulate and persuasive counsel.’
‘David Kim was and is outstanding – he tried and succeeded to fully understand the complex technical case behind the legal battle and that was the basis for a successful arbitration. He is listening, quick to come up with the right strategy but at the same time keeping in mind the odds and thus always balancing out and guiding the client in the right direction ’
‘The best Korean law local lawyers’
‘Lee & Ko has become one of the best arbitration practices at any Korean law firm since the breakup of the team at Bae Kim & Lee. It is ably led by Robert Wachter and their rise to the top is directly tied to his arrival. ’
Key clients
Republic of Korea
Mitsubishi Tanabe Pharma Corporation
Dr. Chang Jae Shin (Chairman of Kyobo Life Insurance)
Hyundai Rotem Co., Ltd
GS Engineering & Construction Corporation
Korea East-West Power Co., Ltd.
The Republic of Korea represented by the Defense Acquisition Program Administration
Hanwha Corporation
Hyundai Heavy Industries Co., Ltd.
Korea Hydro & Nuclear Power Co., Ltd
Work highlights
- Represents the government of the ROK in the $770m ISDS dispute brought by Elliott Associates, L.P
- Represents Mitsubishi Tanabe Pharma Corporation in an ICC arbitration against a Korean affiliate of a large conglomerate in a dispute involving a potential ground-breaking medical treatment.
- Represents a Korean insurance chaebol in a $2bn dispute with other shareholders.
South Korea > Labour and employment: local firms Tier 1
Lee & Ko’s one-stop service handles the full gamut of labour and employment law issues. It has a strong and diverse client base, representing some of the largest clients in Korea, including Hyundai Motors, Ralph Lauren and Samsung Electronics in addition to clients in the entertainment and games industries which was newly created due to increased clientele. Practice leadership is split three ways between Sang Hoon Lee, Chang Soo Jin and Hyun Seok Song; Lee has ‘deep understanding of industry practice’ with over 25 years of experience; Jin has a strong litigation practice, handling management-union disputes, collective bargaining, wrongful terminations, among others; Song has extensive experience in advising on labour union negotiations and disputes. Other key practitioners include Jae Hoon Choi and William Kim. Yong Moon Kim left the firm in April 2021 to join Dentons Lee.Practice head(s):
Other key lawyers:
Jae Hoon Choi ; William Kim; Ki-hyun Kim
Testimonials
‘A team of experts provides detailed and professional opinions on labor and employment issues, and eliminates the risk of violating the law by notifying important laws in advance.’
‘The lawyer understands the customer’s questions and provides sufficient feedback in a short time.’
‘William Kim is very strong. I havent dealt directly with others in the team but feel like I am in safe hands with William. William collaborates well with international counsel. Much more commercial than other Korean counsel.’
‘The labor team is well aware of the company’s needs and impresses with its creative legal services. In addition,The team also provides legal services through rational judgment and active work. The lawyers are very friendly and client-oriented.’’
‘Most law firms’ legal services focus on interpretation based on literature, but Lee&ko’s legal services go beyond interpretation of literature and strive to develop new legal principles. In particular, lawyers Hyun-seok Song and Ki-hyun Kim provide very impressive legal services. I think of it as a service that I can feel like a family rather than a client.’
‘Strong technical skills and excellent market and industry experience’
‘Sang Hoon Lee – responsive and has deep understanding of industry practice. William Kim – responsive and clear’
Key clients
KraussMaffei Group
Samsung Electronics
Citibank Korea
LG Display
KoreaDistrictHeatingCorp.
Envirotainer AB
Epiroc AB
eBay Korea
Edelman Korea
Matheson Gas Product Korea (MGPK)
Colliers International
Hyundai Motors
Edelman
Marine Stewardship Council
Ralph Lauren
Cargill Corporation
Work highlights
- Advised Samsung Electronics in a large legal case in Korea where Samsung Electronics’ 32 top-level executives (including the CEO) were accused and indicted for alleged orchestrated efforts to suppress unionization and engage in other forms of unfair labour practice.
- Represented Hyundai Motors in a wrongful termination before the Korean Supreme Court in a case involving wrongful termination of an employee for poor performance.
- Assisted Eprioc AB (Korea office) to conduct three simultaneous internal investigations into alleged acts of misconduct by various members including the representative director.
South Korea > Projects and energy: local firms Tier 1
The team at Lee & Ko regularly acts on major domestic and foreign energy and infrastructure projects involving a Korean sponsor or lender, and has experience advising on offshore wind farms, solar farms, project financing and PPP projects. Practice leadership is split three ways between Dong Eun Kim , Tom Shin and Hun Ko. Kim represents major project stakeholders and is an expert in all inbound and outbound transactions relating to energy and real estate development; Shin is knowledgeable about renewable energy finance; Ko focuses on project finance, with a particular emphasis on PPI projects such as railways and power plants. Hyunsu Kim is also recommended for banks and financial investors.Practice head(s):
Other key lawyers:
Key clients
Seoul Beltway Co., Ltd
Daesung Group Partners Co., Ltd.
Korea National Oil Corporation
Daelim Industrial Co., ltd
Korea Hydro & Nuclear Power
Hyundai Rotem
Bloom Energy
Dealim Energy
Samsung Life Insurance
KEPCO
SK E&S
IGIS Asset Management Co., Ltd
Meritz Securities Co., Ltd
NH-Amundi Asset Management
NH Investment Securities
Mirae Asset Global Investments Co., Ltd
Mirae Asset Daewoo
KB Securities Co., Ltd.
Industrial Bank of Korea
Korea Development Bank
KDB Infrastructure Asset Management Co., Ltd
Shinhan Bank
Shinhan Asset Management (previously “Shinhan BNP Paribas”)
Hanwha Asset Management Co., Ltd
Samchully Asset Management Company
Macquarie Capital Korea Limited
Kookmin Bank
Samsung Securities
Hyundai Energy Private Equity Co., Ltd
Stonebridge Capital
FG Partners
Hangang Asset Management Co., Ltd.
EQ Partners
Hana Financial Investment
Samsung Asset Management Co., Ltd
KB Asset Management Company
Samtan
Equis Pte.
Stonepeak Infrastructure Partners
Eugene Private Equity
PineStreet Asset Management Co., Ltd
Work highlights
- Advised NH Investment Securities Co., Ltd., (NHIS) on the purchase of 49% financial interest in ADNOC pipelines for $10.1bn.
- Advised Total Group (Total Offshore Wind Korea SAS) on an acquisition in connection with 2.3GW floating offshore wind farm project in the amount of $160m.
- Assisting HDC Holdings Co., Ltd. on the restructuring of Seoul-Chuncheon Expressway to reduce toll fees.
South Korea > Real estate: local firms Tier 1
The real estate team at Lee & Ko is split into five specialised sub-practice areas that handle the full range of real estate matters, including both domestic and overseas investments and developments, redevelopments, real estate trust work and litigation. Junghwan Lee is one of the three co-heads and has seen his practice expand into various worldwide markets, helping Korean investors tap into overseas opportunities. Practicing in both the private and public sector, co-head Jin Wook Yang focuses on real estate developments while Dong Seok Woo has extensive experience in real estate financing, acting for banks, pension funds and Korean conglomerates. Jee In Kim is also recommended for her expertise in collective investment vehicles. For construction work, Chan Ik Chang has experience advising major engineering and construction companies.Practice head(s):
Other key lawyers:
Key clients
IGIS Asset Management Co., Ltd.
LB Asset Management Inc.
Tiger Alternative Investors Co., Ltd.
Samsung SRA Asset Management Co., Ltd.
Vestas Investment Management Co., Ltd.
AIP Asset Co., Ltd.
Mirae Asset Daewoo Co., Ltd.
GAW Capital Partners
Ascendas Asset Management Co., Ltd.
D&D Investment Co., Ltd.
ALPHA Asset Management M.F.M.C
Shinhan REITs Management Co., Ltd.
DWS Asset Management (Korea) Co. Ltd.
Shinhan Alternative Investment Management, Inc.
Hana Alternative Management Co., Ltd.
Mastern Investment Management Co., Ltd.
Paradise Co., Ltd.
ELand Retail Ltd.
KTB Asset Management Co., Ltd.
BNK Asset Management Co., Ltd.
Korea Investment Management Co., Ltd.
Kyungbang Co., Ltd.
Daishin Asset Management Co., Ltd.
Hyundai Investments Co., Ltd.
Work highlights
- Advised Korea Water Resources Corporation in relation to its bidding in Busan Eco-Delta Smart City construction project.
- Advised a commissioned real estate investment trust on its acquisition of Grand Josun Jeju, a luxury hotel in Jeju Island, Korea.
- Advised the acquisition of three logistics centres to be constructed in Virginia, Missouri and Minnesota, United States and to be leased by Amazon.com, Inc.
South Korea > Regulatory: compliance and investigations: local firms Tier 1
Providing integrated regulatory legal services for various sectors, the team at Lee & Ko handles issues faced by the automotive, banking and finance, pharmaceutical and TMT industries, among others. The group is particularly strong in the pharmaceutical and healthcare space, representing several major players, in particular handling the most representative product liability case in South Korea for SK Chemicals. The team is able to conduct thorough internal investigations as well as counselling clients on both Korean and foreign laws for regulatory issues by utilising its experts in foreign jurisdictions; practice co-head Kyunghoon Lee is the key contact for cross-border matters. Chang Hee Suh jointly leads the team that includes Tae Yop Lee who leverages his years of experience as a prosecutor to advise clients on criminal liability, customs and trade-related breaches.Practice head(s):
Other key lawyers:
Key clients
SK Chemicals Co., Ltd. (“SK Chemicals”)
Mirae Asset Daewoo Co., Ltd., Mirae Asset Life Insurance Co., Ltd., Mirae Asset Consulting Co., Ltd., Mirae Asset Capital Co., Ltd., Mirae Asset Venture Investment Co., Ltd., Mirae Asset Fund Services Co., Ltd., Brand Moove Co., Ltd., Mirae Asset Financial Services Co., Ltd., Multi Asset Global Investments Co., Ltd., Real Estate 114 Co., Ltd., Mirae B. I. Co., Ltd., Chairman Hyun-Joo Park
Hanwha Life Insurance Co., Ltd. (“Hanwha Life”)
JUUL Korea, JUUL Singapore
Kia Motors
Gangwon Technopark
KakaoBank
Work highlights
- Represented SK Chemicals against the KFTC in a case seeking cancellation of a corrective order and the imposition of a fine, and managed to defend successfully.
- Represented Mirae Asset Financial Group in the KFTC’s investigation of an alleged unfair transaction intended to provide an unfair advantage to a related person.
- Advised KakaoBank, Korea’s no.1 internet-only bank, on compliance issues related to KakaoBank’s account opening services via KakaoTalk, under the Electronic Financial Transactions Act and the Electronic Financial Supervisory Regulation.
South Korea > Shipping: local firms Tier 1
Lee & Ko has a comprehensive full-service shipping practice that handles aviation, shipbuilding and logistics. The team advises shipping companies, financial institutions and investors on the acquisition and financing of new and second-hand ships as well as container boxes, amongst other things; Yun Jeong Seo heads up the ship finance team. It has also been actively advising Korea Overseas Corporation (KOBC) and lenders on KOBC guaranteed-back financing. Head of shipping and logistics Jin-Young Jung specialises in marine insurance and international commercial disputes and is supported by Yang Ho Hoon, whose practice focuses on trade disputes and handles cases involving chemical cargo contamination. Aviation expert Young-Joo Cho joined the team in July 2020 and has strengthened the team’s offering in this area.Practice head(s):
Other key lawyers:
Testimonials
‘Knowledgeable. Very helpful consideration of Korean law issues.’
‘They not only pay attention to details on the contract itself but also try very hard to understand the client’s status in each case.’
‘I usually consult with Jin Young Jung. He is very calm and kindly explains the changes to the contract. Most of our agreement is more than 100 pages and is constantly chased by time. However, Mr. Jung always manages the time and handed us the thorough contract.’
‘They are very strong in all fields in particular maritime and trade. They have excellent knowledge of the law and are able to apply that commercially also which is appreciated. Also great attention to detail and some very pre-eminent clients in Korea.’
‘Jin Young Jung is very highly regarded and very experienced. We also enjoy working with Sang Hyup Lee who is likewise excellent.’
‘Lee & Ko impressed me a lot for their efficiency and accurate advice on the shipping practicing area. ’
‘Their shipping team is good at dealing with urgent procedural applications including ship arrests etc and they are very experienced and reliance shipping counsels in South Korea. ’
Key clients
HYDOR AS, a Norwegian P&I club
Japan P & I Club
HMM Corporation Limited (formerly known as Hyundai Merchant Marine Co, Ltd.)
Pan Ocean Co., Ltd. (formerly known as STX Pan Ocean)
Busan Port Terminal Co., Ltd
Taeyoung Shipping Co., Ltd.
Heung-A Shipping Co., Ltd
DSEC Co. ,Ltd.
Meritz Fire & Marine Insurance Co., Ltd.
Lotte Global Logistics Co., Ltd. (formerly known as Hyundai Logistics)
Samsung SDS Co., Ltd.
Pantos Logistics Co., Ltd.
CJ Korex Co., Ltd.
Hyundai Glovis Co., Ltd.
H-Line Ship Co., Ltd.
Hyundai Heavy Industries Co., Ltd
Korean Air Lines Co., Ltd.
China Eastern Airline
Turkish Airlines
FINNAIR
E1 Corporation
Korea Middle Power Corporation
Hyundai Oil Bank Co.,Ltd
SK E&S Co., Ltd.
SK Networks Co., Ltd.
KORES
Work highlights
- Advised a consortium of five Korean shipping companies in relation to an international bidding hosted by Qatar Petroleum for purpose of awarding time charter party contract for hundreds of LNG Carriers, advised the Client on the deal structure including financing, reviewed and commented on the templates of time charter-party, shipbuilding contract and other ancillary agreements and established SPVs in convenience flag countries, etc.
- Represented Heung-A Shipping Co. , Ltd. in a KCAB arbitration initiated by a Norwegian ship-owner in relation to a dispute arising out of bareboat charter-parties.
- Advised the Standard Chartered Bank (Hong Kong) Limited on its finance acquisition costs of eight 15,986 TEU containerships for Hyundai Merchant Marine in the respective ownership of eight Liberian SPVs established by HMM.
South Korea > Tax: local firms Tier 1
Providing both tax advisory and litigation services, the team at Lee & Ko is known for its expertise in corporate tax consulting, audits and appeals. It also has a strong cross-border practice, providing outbound tax planning advice for Korean investors and companies investing into overseas markets; Jay Shim leads the international tax planning practice and is an expert in cross-border transactions and off-shore fund formation. The group is strong in litigation, reflected by practice head Ok Hyun Ma’s years of experience as a judge prior to joining the firm in addition to Byeong Jun Son’s expertise in domestic tax litigation and Sung Hyun Ru’s career at the National Tax Service.Practice head(s):
Other key lawyers:
Testimonials
‘During the engagement, team did proactive communications of the pleading schedule and relevant documentations for pleading, so that we could have a sense of stability and well understood how the company gives support on the findings. They are fantastic! ’
‘All members show sincerity and integrity, so we can have full trust in them and can be confident on what we are doing. Highly talented and logical members are the best value we’ve found.’
‘Members are so meticulous that they precisely point out the core and critical matters, which makes us keep concentration on them and respond one by one without any missing. They are so good. Highly appreciate all their services.’
‘Tax lawyer provide advistory service with a very competant team.’
‘The capability (knowledge and experience) of each individual in Lee&Ko I worked with, whether the individual is lawyer or CPA, is excellent.’
‘Whenever our company encounter tax or tax legal issues, Lee&Ko provide very thorough and practical advisory service based on their experiences and knowledge. Each individual in Lee&Ko I worked with is very sincere in providing advisory service.’
Key clients
PAG Real Estate Fund
HPEF Capital Partners
AIG
Business Sweden
Fortress Investments
Tela Inc.
Intergraph Korea
Mastercard Incorporated
Changshin Group
Intellectual Ventures
Shinhan Asset Management, Mirae Asset Daewoo, Mirae Asset Life Insurance, and KDB Infrastructure Asset Management
Hotel Lotte Co., Ltd (“Hotel Lotte”), Eugene Asset Management, and Samsung Securities
Work highlights
- Represented Intergraph Korea against the NTS’ assessment of withholding tax based on its view that the payment for software imported from its foreign parent company constitutes royalties for know-how and technologies embedded in the software.
- Represented Mastercard and secured victories on appeal at the Seoul Administrative Court and Seoul High Court, overturning all of the previous decisions made against Mastercard, and is now litigating at the level of the Supreme Court.
- Represented and advised PAG, one of Asia’s leading investment firms, on a number of transactions in 2020, the most significant of which related to one of the largest and most high-profile real estate transactions in Korea in 2020.
South Korea > Antitrust and competition: local firms Tier 2
Lee & Ko represents a diverse range of domestic and foreign clients across multiple industry sectors, including semi-conductor and high tech, automotive parts, construction, healthcare and shipping. The team advises on the full gamut of antitrust and competition law issues, with recent growth in its investigations practice concerning unfair trade and abuse of superior trading positions. Hwan Jeong has over 20 years of experience in competition law matters and leads the team that includes managing partner Yong Seok Ahn, who represents multinational clients; Suruyun Kim, an expert in complicated merger review cases; and associate Jung Won Kwon who provides strong support to the team. Antitrust litigation is another strength of the practice, with Pyoung Keun Song leading in this area. The arrival of Hyun Young Ju from the Supreme Court of Korea and former presiding judge at Daejeon High Court, In Seok Lee further strengthens the group’s antitrust and competition offering.Practice head(s):
Other key lawyers:
Testimonials
‘They have a lot of case experience in the Antitrust field.’
‘They always work hard and have good client relationships.’
Key clients
Mirae Asset Group
LG Electronics (“LGE”)
Mitsubishi Electric Co., Ltd. (“Mitsubishi Electric”)
SK Telecom Co., Ltd. (“SKT”)
Korea Development Bank (“KDB”)
CJ Logistics Co., Ltd. (“CJ Logistics”)
SK Energy Co. Ltd. (“SK Energy”)
Celltrion Co., Ltd. (“Celltrion”)
DL E&C Co., Ltd. (“DL E&C”), Daewoo ENC Co., Ltd. (“Daewoo ENC”), and SK E&C Co., Ltd. (“SK E&C”)
Hyundai Heavy Industries Co., Ltd. (“HHI”) and its affiliate, Hyundai Construction Equipment Co., Ltd. (“HCE”)
Work highlights
- Defended Mirae Asset Financial Group in criminal charges alleging that it had tried to bring unfair profits to Hyun-Joo Park, the group’s chairman.
- Defended LG Electronics (LGE) in an injunction application alleging that the advertising claims made by LGE relating to its cordless vacuum cleaner were misleading and in violation of Korea’s advertising laws.
- Represented Mitsubishi Electric in a KFTC investigation alleging price-fixing and bid-rigging of private tender processes for the ignition coils in Japan.
South Korea > Capital markets: local firms Tier 2
Lee & Ko has a strong reputation in debt capital markets work which is reflected in its representation of both the Korean government, as issuer, and lead underwriters in foreign exchange equalisation bond deals for a number of years. The firm is also heavily involved in the issue of ESG bonds, such as green and social bonds. In the equity capital markets area, the team excels in REIT related work as well as handling several major IPOs for key clients such as SK IE Technology Co. Wonkyu Han leads the team which consists of Hyunjoo Oh, a leading securities expert including derivatives, foreign exchange regulations and capital market disputes; Won Sik Choo who advises on equity issuances and listings and de-listings.Practice head(s):
Other key lawyers:
Key clients
Central American Bank for Economic Integration
Deutsche Borse AG
ICBC Standard Bank Plc
BankerStreet
BlackRock, Inc.
Agricultural Bank of China
National Pension Service
Export-Import Bank of Korea
Korea Development Bank
Korea Post
ING Bank
Standard Chartered Bank
BNP Paribas
Deutsche Bank
Citigroup Global Markets Inc.
The Hongkong and Shanghai Banking Corporation Limited
J.P. Morgan Securities LLC
Korea Investment Corporation
Societe Generale
Korea Investment & Securities Co., Ltd.
Samsung Securities Co., Ltd.
Mirae Asset Daewoo Co., Ltd.
Meritz Securities Co., Ltd.
Hana Bank
Shinhan Bank
NH Investment & Securities
Work highlights
- Advised the Republic of Korea in connection with the issue of €700m Zero Coupon Notes due 2025 (the first issuance of Euro bonds by a non-European country at a negative interest rate) and $625m 1.000% Notes due 2030 offered pursuant to the registration statement under Schedule B (No. 333-231096) amidst the continuing global economic uncertainty caused by the spread of COVID-19.
- Advised SK IE Technology, a manufacturer of battery separators, in relation to its initial public offering (IPO) and its listing on Korea Composite Stock Price Index (KOSPI) raising 2.2 trillion Korean won reportedly Korea’s biggest listing in four years.
- Advised D&D Platform REITS managed by D&D Investment Co., Ltd., a subsidiary of SK D&D Co., Ltd., in connection with its raising of pre-IPO investment amounting to ₩137bn.
South Korea > TMT: local firms Tier 2
The leading TMT practice at Lee & Ko is retained in an advisory capacity to several government bodies, including the Ministry of Science and ICT, the Korea Communications Commission and the KFTC. Not only is the team well-equipped at advising clients on legal issues, but it is also actively involved in the establishment of legislation and regulatory guidelines in industries such as data economy, AI and big data. Soon-Yub Samuel Kwon, Kwang Bae Park and Jongsoo (Jay) Yoon jointly lead the team; Kwon has a wide-ranging practice while Park plays an integral role in data privacy, fintech and cybersecurity issues. The team has a strong litigious arm, successfully representing clients in lawsuits involving interconnection fees, data breaches and liability stemming from the operation of cryptocurrency exchanges; Yoon specialises in civil litigation and criminal defence. Hyun Jun Kim is also recommended.Practice head(s):
Other key lawyers:
Testimonials
‘Tae Joo Kim, as the leading partner of the team, has provided service with great expertise in the TMT sector, and delivered advice with quality.’
‘Strong collaboration and high level of professionalism.’
Key clients
Marriott
Hyundai Motor Company and Kia Motors Corporation
eBay Korea Co., Ltd.
Coupang
LG Electronics
LG Chemical
SK Telecom
Naver
Audi Volkswagen Korea
Google LLC
Shinhan Financial Group
Korea Credit Bureau
Work highlights
- Advising on a comprehensive project to assess legal feasibility and compliance of data sharing platform for leading auto manufacturers in Korea.
- Advising on a compliance project for Coupang’s e-commerce platform and new OTT service.
- Advising on the licensing of Woori Bank’s MyData business.
Lee & Ko > Firm Profile
- Premier full-service law firm in Korea
- Founded in 1977, and comprising more than 780 professionals, organized into 8 practice groups with 40 specialty teams
- One-stop service for all legal needs, based on efficient collaboration among highly specialized team
- Emphasis on responsiveness and practical solutions
- 8 major practice groups: (i) corporate and M&A, (ii) banking, finance and securities, (iii) litigation (both civil and criminal) and international arbitration (iv) tax and customs, (v) antitrust and competition, (vi) labour and employment, (vii) intellectual property and (viii) white-collar crime
- 40 specialised teams: Within the firm’s eight major practice groups there are approximately 40 highly specialised teams of legal professionals including the following: anti-corruption and FCPA; antitrust and competition; aviation; banking; bankruptcy, insolvency and corporate restructuring; capital markets and securities; class actions and consumer claims; construction; consumer goods and services; corporate and M&A; corporate governance; derivatives; dispute resolution; energy; entertainment; environment; finance (acquisition finance, asset finance, project finance, structured finance); foreign direct investment; healthcare; industry and manufacturing; infrastructure; insurance; intellectual property; internal investigations; international practice (Chinese, European, Japanese practice); international trade; investment funds; labour and employment; maritime and shipping; overseas investment; private equity and venture capital; privatisation; product liability; real estate; regulatory compliance; tax and customs (tax consulting, audits, dispute resolution, transfer pricing); technology, media and telecommunications; and white-collar crime.
Recognition and Awards
- “Intellectual Property Firm of the Year” – Asialaw (2021)
- “Impact Deal/Case of the Year” – Asialaw (2021)
- “Asialaw Client Service Excellence 2021” – Asialaw (2021)
- “Firm of the Year – South Korea” – Euromoney (2021)
- “Intellectual Property Firm of the Year Award” – The Asian Lawyer (2021)
- “Employer of Choice in Korea Market” – Thomson Reuters (2021)
- “Jurisdiction Awards: South Korea” – Euromoney (2020)
- “Tax Firm of the Year” – Euromoney (2020)
- “Matters of the Year – Impact Cases of the Year” – Euromoney (2020)
- “Securities Deal of the Year: Debt” – The Asian Lawyer (2020)
- “Banking and Financial Services Law Firm of the Year” – Thomson Reuters (2020)
- “Insurance Law Firm of the Year” – Thomson Reuters (2020)
- “Labour and Employment Law Firm of the Year” – Thomson Reuters (2020)
- “Litigation Law Firm of the Year” – Thomson Reuters (2020)
- “Debt Market Deal of the Year” – Thomson Reuters (2020)
- “Asialaw Client Service Excellence 2020” – Asialaw (2020)
- “Impact Deal of the Year” – Asialaw (2020)
- “Aviation and Shipping Firm of the Year” – Asialaw (2020)
- “Patent Contentious Firm of the Year” – MIP (2020)
- “Copyright Firm of the Year” – MIP (2020)
- “Elite Law Firm” – Global Competition Review (2020)
- “Best Firm in South Korea” – Euromoney (2019)
- “Korea Deal Firm of the Year” – Thomson Reuters (2019)
- “Labour and Employment Law Firm of the Year” – Thomson Reuters (2019)
- “Projects, Energy and Infrastructure Law Firm of the Year” – Thomson Reuters (2019)
- “Regulatory and Compliance Law Firm of the Year” – Thomson Reuters (2019)
- “TMT Deal of the Year” – Thomson Reuters (2019)
- “M&A Deal of the Year” – Thomson Reuters (2019)
- “Korea TMT Firm of the Year” – The Asian Lawyer (2019)
- “Dispute Resolution Firm of the Year” – Asialaw (2019)
- “Korea Patent Firm of the Year” – Asia IP Awards (2019)
- “Korea Trademark Contentious Firm of the Year Award 2019” – MIP (2019)
- “Korea Finance Firm of the Year” – The Asian Lawyer (2018)
- Tier 1 in all or a majority of practice areas by Asia Pacific Legal 500, IFLR 1000, Asialaw Profiles and Chambers Asia
Main Contacts
| Department | Name | Telephone | |
|---|---|---|---|
| Antitrust and Competition | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Antitrust and Competition | Hwan Jeong | hwan.jeong@leeko.com | |
| Banking and Finance | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Banking and Finance | Woo Young Jung | wooyoung.jung@leeko.com | |
| Capital Markets | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Capital Markets | Wonkyu Han | wonkyu.han@leeko.com | |
| Corporate and M&A | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Corporate and M&A | Hyun Tae Kim | hyuntae.kim@leeko.com | |
| Corporate and M&A | Sang Gon Kim | sanggon.kim@leeko.com | |
| Corporate and M&A | Hyeong Gun Lee | hyeonggun.lee@leeko.com | |
| Dispute Resolution | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Dispute Resolution | Won Seok Ko | wonseok.ko@leeko.com | |
| Insurance | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Insurance | Jin Hong Kwon | jinhong.kwon@leeko.com | |
| Intellectual Property | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Intellectual Property | Un Ho Kim | unho.kim@leeko.com | |
| International Arbitration | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| International Arbitration | Sean (Sungwoo) Lim | sean.lim@leeko.com | |
| International Arbitration | Robert Wachter | robert.wachter@leeko.com | |
| Labour and Employment | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Labour and Employment | Sang-Hoon Lee | sanghoon.lee@leeko.com | |
| Labour and Employment | Chang-Soo Jin | changsoo.jin@leeko.com | |
| Projects and Energy | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Projects and Energy | Dong Eun Kim | dongeun.kim@leeko.com | |
| Projects and Energy | Tom Shin | tom.shin@leeko.com | |
| Projects and Energy | Hun Ko | hun.ko@leeko.com | |
| Real Estate | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Real Estate | Junghwan Lee | junghwan.lee@leeko.com | |
| Real Estate | Jin Wook Yang | jinwook.yang@leeko.com | |
| Real Estate | Dong Seok Woo | dongseok.woo@leeko.com | |
| Regulatory: Compliance and Investigations | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Regulatory: Compliance and Investigations | Kyunghoon Lee | kyunghoon.lee@leeko.com | |
| Regulatory: Compliance and Investigations | Chang Hee Suh | changhee.suh@leeko.com | |
| Shipping | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Shipping | Jin-Young Jung | jinyoung.jung@leeko.com | |
| Shipping | Yun Jeong Seo | yunjeong.seo@leeko.com | |
| Tax | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| Tax | Jay Shim | jay.shim@leeko.com | |
| TMT | Jae Hoon Kim | jaehoon.kim@leeko.com | |
| TMT | Soon Yub (Samuel) Kwon | samuel.kwon@leeko.com | |
| TMT | Kwang Bae Park | kwangbae.park@leeko.com | |
| TMT | Jongsoo (Jay) Yoon | jay.yoon@leeko.com |
Lawyer Profiles
Staff Figures
Number of fee-earners : 780+Languages
Korean English Japanese French German Chinese Spanish Russian VietnamesePress Releases
#1 Top Tier Law Firm in ALB M&A Rankings 2022
3rd October 2022 ALB selected Lee & Ko as a top tier(Tier 1) law firm in ‘ALB M&A Rankings 2022’.Lee & Ko Selected as “Asia IP Firm of the Year”
20th January 2022 On 05.06.2021 Legal Times reports, “The Asian Lawyer, a sister online media outlet of the American Lawyer, has selected Lee & Ko as Intellectual Property Firm of the Year in all of Asia, based on 2021 Asia Legal Awards, an online survey conducted on May 5.Lee & Ko awarded the Litigation and Arbitration Award and the Advisory Award at the ‘4th Korea Legal Awards’
20th January 2022 Lee & Ko received the Litigation and Arbitration Award (Nullification of Korea Exchange’s Delisting) and the Advisory Award (Advising Korean Air’s acquisition of Asiana Air) at the ‘4th Korea Legal Awards 2021’.‘Chambers Asia-Pacific 2022’ ranks Lee & Ko in the top band in 11 practice areas
20th January 2022 Lee & Ko received Band 1 rankings by 'Chambers Asia-Pacific 2022’ in 12 practice areas.Lee & Ko Ranks First in Legal Advisory Service, M&A Legal Advisory Ranking for the First Half of 2021
20th January 2022 On July 1, 2021, Lee & Ko was ranked No. 1 in the M&A legal advisory ranking for the first half of 2021 as hosted by Invest Chosun.Lee & Ko Ranked in 15 Practice areas in The Legal 500’s 2022 Asia Pacific guide.
20th January 2022 On 12th January 2022, leading Korean law firm Lee & Ko was recognised in 15 practice areas by The Legal 500, ranking tier one in 12 areas.South Korea
23rd January 2017 KFTC Enhances the Predictability and Clarity of Decisions but Potentially Increase the Overall Administrative Fine Levels Facing continued criticisms that the existing rules allowed overly broad discretion to the Korea Fair Trade Commission (the “KFTC”) in setting the amount of administrative fine, the KFTC amended the Notification on Detailed Standards for Imposition of Administrative Fine (the “Notification”). The amendments (the “Amendments”) were passed by the KFTC’s full Committee of Commissioners on December 21, 2016, and came into effect on December 30, 2016.Legal Developments
2022 Proposed Korean Tax Law Amendments – International Taxation
5th October 2022 The Ministry of Economy and Finance (MOEF) released “2022 proposed tax law amendments” (the Proposed Amendments) on July 21, 2022 which would generally be effective from 2023.Korea Implements New Act on Special Measures for Strengthening and Protecting Competitiveness of National High-Tech Strategic Industries
5th October 2022 Korea’s Act on Special Measures for Strengthening and Protecting Competitiveness of National High-Tech Strategic Industries (the Special Act) has been implemented with its accompanying Enforcement Decrees and Enforcement Rules. The Special Act aims to: (1) maintain national and economic security; (2) protect and foster strategic technologies; and (3) enhance the competitiveness of Korea’s high-tech industry.PIPC Imposes Record Fines on Google and Meta for Privacy Violations
3rd October 2022 On September 14, 2022, the Personal Information Protection Commission (PIPC) announced that it had imposed record fines totaling KRW 100 billion on Google LLC (Google) and Meta Platforms, Inc. (Meta), the service provider of Facebook and Instagram, for collecting and using the behavioral data of users without consent for targeted advertisements in violation of the Personal Information Protection Act (PIPA). The respective violations committed by each company, as well as the fines and other administrative sanctions imposed thereon, are summarized in greater detail below.- Details of violations and administrative sanctions
- Implications
If you have any questions regarding this article, please contact below:Kwang Bae PARK (kwangbae.park@leeko.com)Hwan Kyoung KO (hwankyoung.ko@leeko.com)Sunghee CHAE (sunghee.chae@leeko.com)Kyung Min SON (kyungmin.son@leeko.com)For more information, please visit our website: www.leeko.com
New Administration Displays Its Strong Will to Promote Digital Health
15th August 2022 Further to the 110 national initiatives for the new administration announced on May 3, 2022 (see our newsletter dated May 10, 2022), the government released a more detailed plan to promote digital health on July 27, 2022 (the Plan). The Plan was jointly prepared by the Ministry of Health and Welfare, the Ministry of Economy and Finance, the Ministry of Science and ICT, the Ministry of Trade, Industry and Energy, and the Ministry of Food and Safety.Recent Supreme Court Decision Discusses the Income Characterization of Consideration for Software under the Korea-US Tax Treaty
5th July 2022 Lee & Ko Tax Group is pleased to distribute this Tax Alert to our Clients and Friends of an important tax case recently decided by the Supreme Court of Korea (2022du36155, decided on June 16, 2022) involving certain payments for the purchase of software by a Korean subsidiary from its US parent.Amendments to Korea’s Unfair Competition Prevention and Trade Secret Protection Act Provide More Protection for Data and Famous People
11th May 2022 Korea’s recent amendments to the Unfair Competition Prevention and Trade Secret Protection Act (the UCPA) strengthened the statutory framework for:Revised Korean Patent Act going into effect from April 20, 2022
11th May 2022 A number of important changes to the Korean Patent Act (KPA) are scheduled to go into effect from April 20, 2022. Read on to learn more about how these changes have been made to protect an applicant’s interests, provide further opportunities to obtain patent rights, and simplify a variety of procedures.The New Administration’s Policy Outlook for Healthcare/Life Sciences
11th May 2022 With the inauguration of Yoon Seok-yeol as the 20th president of Korea scheduled to take place on May 10, 2022, the Presidential Transition Committee (the Committee) announced 110 national initiatives for the new administration (the Initiatives) on May 3, 2022. In connection with national healthcare, (1) improvement and sophistication of countermeasure against pandemics, (2) stimulation of digital health and bio industries, (3) expansion of essential medical services and alleviation of medical cost burdens, and (4) strengthening of preventive health management are included in the Initiatives.Deregulation of the Financial Sector’s Cloud Computing and Network Separation
4th May 2022Improvements to Cloud Computing and Network Separation Rules in Financial Sector
On April 14, 2022, the Financial Services Commission unveiled its plans to improve regulations on cloud computing and network separation in the financial sector. This improvement plan aims to support the financial sector’s efforts for digital transformation in a stable manner, in response to the financial industry’s concerns about the difficulties in adopting and using new digital technologies because of excessive regulations on cloud computing and network separation.New President-Elect’s Labor Policy Outlook
23rd March 2022 On 9 March 2022, Suk-Yeol Yoon was elected as the 20th president of the Republic of Korea. As one of the central components of his campaign platform, the president-elect advocated various policy changes and reforms that could have significant impacts on the employment and labor laws in Korea.Digital Finance: Current Issues and Laws
7th February 2022 Financial Metaverse Platform and Legal ConsiderationsChanges to KFTC Merger Guidelines Took Effect on December 30, 2021
7th January 2022Expanding Scope of Business Combinations Eligible for Simplified Review
The Korea Fair Trade Commission (the “KFTC”) amended the KFTC Guidelines on Merger Review (the “Amended Merger Review Guidelines”) to expand the scope of business combinations eligible for a simplified review, and the Amended Merger Review Guidelines took effect on December 30, 2021. A simplified review is an expedited merger review process undertaken by the KFTC when the business combination transaction at issue is not likely to raise anti-competitive concerns in the relevant market. The review period for a simplified review is 15 calendar days instead of the review period of 30 calendar days (which may be extended up to 90 calendar days) for a standard merger review.Prior to the Amended Merger Review Guidelines, the establishment of an overseas joint venture company with no effect on the Korean market was subject to a simplified review among other types of transactions. With the Amended Merger Review Guidelines, the KFTC has expanded the scope to include extraterritorial mergers as eligible for a simplified review. Four other types of transactions (share acquisition, merger, interlocking directorate and business transfer) may now qualify for a simplified review as long as the target company is a foreign company and the transaction does not have an effect on the Korean market.Also, the Amended Merger Review Guidelines has made it clear that not only those transactions to establish a new joint venture outside of Korea but also to form a joint venture through the acquisition of shares in a company established outside of Korea may now be eligible for a simplified review. Moreover, under the Amended Merger Review Guidelines, acquisition of real property pursuant to a Real Estate Investment Trust (REIT) may be eligible for a simplified review.Changes in Merger Filing Requirements
The KFTC amended the Guidelines on Merger Filing (the “Amended Merger Filing Guidelines”) to reflect the amended merger filing requirements set forth in the amended Monopoly Regulation and Fair Trade Act which took effect on December 30, 2021 (the “Amended MRFTA”), and the Amended Merger Filing Guidelines took effect on December 30, 2021 as well.Under the pre-Amended MRFTA, regulating mergers involving start-ups (e.g., online platform operators) with high growth potential (based on a large number of users) but with assets or turnover below such thresholds was not possible.Under the Amended MRFTA and its enforcement decree, a merger filing may now be triggered if the transaction value is at least KRW600 billion and a local nexus has been established to enable the KFTC to monitor mergers involving high growth potential start-ups. To determine local nexus, the test is whether the target entity has performed a "substantial level" of activities in the Korean market based on any one of the following factors within the three fiscal years immediately preceding the notification date:- Target company sold or provided products or services in the Korean market to at least 1 million persons per month in any month during the above period; or
- Annual budget of target company for leasing R&D facilities or using R&D personnel in Korea is KRW30 billion or more in any year during the above period.
| Example: In case Company A, which holds 5% of Company B’s stock, acquires an additional 50% shares at KRW590 billion (5% of Company B’s stock is valued at KRW4.5 billion and the liabilities of Company B is KRW10 billion).à Transaction amount is KRW600 billion [(KRW590 billion + KRW4.5 billion + (KRW10 billion x 55%))] |
| Example: In case when Company C while merging with Company D issues 59,000,000 shares to Company D’s shareholders (merger price per share KRW10,000 and Company D’s liabilities is KRW10 billion).à Transaction amount is KRW600 billion [(KRW10,000 x 59,000,000 shares) + KRW10 billion] |
| Example: In case when Company E while taking over Company F’s business pays consideration of KRW590 billion and takes over related liabilities in the amount of KRW10 billion.à Transaction amount is KRW600 billion (KRW590 billion + KRW10 billion) |
| Example: In case Company G and Company H while establishing a new joint venture sign an agreement to each invest an amount of KRW600 billion and KRW20 billion, respectively.à Transaction amount is KRW600 billion |
If you have any questions regarding this article, please contact below:Hwan JEONG (hwan.jeong@leeko.com)Suruyn KIM (Suruyn.kim@leeko.com)Frank S. SHYN (frank.shyn@leeko.com)For more information, please visit our website: www.leeko.com
Digital Finance: Current Issues and Laws NFTs: Key Korean Legal Considerations
6th January 2022 NFTs, or non-fungible tokens, have exploded in popularity recently in line with the surge in interest in the metaverse among companies like Meta (former Facebook) as well as investors and consumers. We discuss the characteristics of NFTs and the legal and regulatory issues relating to them.Court Allows Lessee to Terminate Commercial Lease as COVID-19 Force Majeure
6th January 2022 Court Allows Lessee to Terminate Commercial Lease as COVID-19 Force Majeure.1Amendments to Korea’s Unfair Competition Prevention and Trade Secret Protection Act Provide More Protection for Data and Famous People.
9th December 2021 Korea’s recent amendments to the Unfair Competition Prevention and Trade Secret Protection Act (the UCPA) strengthened the statutory framework for:Arbitration Agreement Survives Franchise Law Challenge
16th November 2021 The Supreme Court recently issued a judgment upholding the validity of an arbitration agreement in an international franchise agreement,(1) notwithstanding the franchisee's objection that the arbitration agreement violated mandatory provisions of Korean law intended to protect franchisees.Tax Alert – the Korean Ministry of Economy and Finance Announces 2022 Tax Amendment Proposals
13th September 2021 On July 26, 2021, the Ministry of Economy and Finance announced the government’s tax amendment proposals for 2022 (the Proposals). The Proposals are intended to (i) encourage economic recovery from the COVID-19 pandemic, facilitate job creation and drive the growth of industry sectors that will boom in the post-COVID era; (ii) reduce the economic inequality that has worsened during the COVID-19 pandemic by giving tax benefits to small and medium sized enterprises and low-income households; and (iii) improve the tax system and strengthen taxpayer protection.PIPC Sanctions Facebook and Netflix for Privacy Violations
8th September 2021 On August 25, 2021, the Personal Information Protection Commission (PIPC) announced that it had imposed various administrative sanctions (i.e., administrative penalty surcharges totaling KRW 6.66 billion, administrative fines totaling KRW 29 million, corrective orders, improvement recommendations, and publications) on Facebook[1]and Netflix for violations of the Personal Information Protection Act (PIPA). Google was also investigated but was only recommended to improve its data processing practices after the PIPC determined that it had not committed any violations of the PIPA. The respective administrative sanctions and measures imposed on each company are summarized in greater detail below.Digital Finance: Current Issues and Laws – Guidelines for AI issued for financial sector
19th August 2021 We introduce the key points and implications of the newly issued Financial Sector Artificial Intelligence Guidelines as below.Pharmaceutical Affairs Act Amended to Limit ‘Joint Use of Bioequivalence Test’
19th July 2021 The amendment to the Pharmaceutical Affairs Act (PAA) passed the National Assembly on June 29, 2021, and is expected to be promulgated sometime in July.Changes to CISO Designation Rules and Public Disclosure Requirement for Information Security
22nd June 2021 Certain amendments to the Act on Promotion of Information and Communications Network Utilization and Information Protection (“Network Act”) and the Act on the Promotion of Information Security Industry (“Information Security Industry Act”) were promulgated on June 8, 2021 and are scheduled to go into effect on December 9, 2021. These amendments contain several major changes to the chief information security officer (“CISO”) designation rules under the Network Act, and the public disclosure requirements for information security matters under the Information Security Industry Act. Below, we provide an overview of the changes made by the promulgated amendments.Amendment to the Design Protection Act seeking to protect GI designs is approved by the National Assembly
23rd April 2021On March 24, 2021, amendment to the Design Protection Act seeking to protect graphic image (GI) designs (the Amendment) was passed during a plenary session of the National Assembly of Korea, meaning that the Amendment will go into effect six months after promulgation. The Amendment is expected to offer strengthened protection for emerging technologies such as projections, holographs, virtual/augmented reality and graphic user interface, and companies planning to use such technologies would want to check if there are related design registrations or applications.
Successful Conclusion of Adequacy Talks between the Republic of Korea and the European Union
19th April 2021On March 30, 2021, the Personal Information Protection Commission (PIPC) and the European Commission jointly announced the successful conclusion of adequacy talks between the Republic of Korea (Korea) and the European Union (EU).
Korean Supreme Court Details Standard for Establishing Doctrine of Equivalents Infringement
19th April 2021In Korea, as in the United States and Japan, the recognition of patent infringement claims under the Doctrine of Equivalents (“DoE”) has been established by several key precedents. Recently, the Korean Supreme Court provided key guidance through detailed ruling standards for two of the three factors to establish DoE infringement, namely (1) the “Substantially Identical Solution Principle” and (2) the “Substantially Identical Effect Principle.”[1]
Recent Decision Involving Business Profits vs. Royalties Characterization under the US-Korea Tax Tree
6th April 2021Lee & Ko Tax Group is pleased to distribute this Tax Alert Newsletter to our clients and friends of an important tax case recently decided by the Seoul Administrative Court (2019Guhap70643, February 5, 2021) involving certain payment for the purchase of software by a Korean subsidiary to its US parent. This case appears to disagree with the approach taken by another court in a similar matter involving the Korean subsidiary of PTC, the US computer software and services company (PTC Korea Case).
Recent Decision Involving Business Profits vs. Royalties Characterization under the US-Korea Tax Treaty: PTC Korea Case Not Followed
29th March 2021 Lee & Ko Tax Group is pleased to distribute this Tax Alert Newsletter to our clients and friends of an important tax case recently decided by the Seoul Administrative Court (2019Guhap70643, February 5, 2021) involving certain payment for the purchase of software by a Korean subsidiary to its US parent. This case appears to disagree with the approach taken by another court in a similar matter involving the Korean subsidiary of PTC, the US computer software and services company (PTC Korea Case).Proposed Amendments to the Personal Information Protection Act
5th March 2021Introduction
On January 6, 2021, the Personal Information Protection Committee (PIPC) proposed and announced for public comment significant amendments to the Personal Information Protection Act (PIPA) (the Proposed Amendments). We discuss some of the key aspects of the Proposed Amendments in greater detail below.National Assembly Announces Major Accident Punishment Act
25th January 2021 On January 8, 2021, the National Assembly passed new legislation titled the Major Accident Punishment Act (MAPA) as part of its initiative to demand greater accountability from corporate actors in the event of a large-scale accident. The MAPA’s legislative objective is to set forth more specific parameters on the management’s responsibility to ensure occupational health and safety and impose greater sanctions to ensure compliance with the law.Sweeping Changes to the Korean Criminal Procedures Starting in the New Year
5th January 2021 A series of legislations affecting the criminal law landscape in Korea have been enacted since the end of 2019 e.g., ‘Corruption Investigation Office for High-Ranking Officials Act’, ‘Prosecutor’s Office Act’ and ‘Criminal Procedure Act’, followed by the establishment of subsidiary laws and regulations. In addition, with the passage of the amendment bill of ‘High-Ranking Official’s Crime Investigation Agency Act’ in December 10th, sweeping changes to the overall law enforcement system are expected.The KFTC rules that the Practice of Tying Patented LNG Technology with Engineering Assistance Services is Illegal
22nd December 2020 On November 25, 2020, the Korea Fair Trade Commission (the “KFTC”) imposed a fine of USD 11 million on Gaztransport & Technigaz (“GTT”), a multinational engineering company headquartered in France, for abusing its market dominance in liquefied natural gas (LNG) container tank technologies (the “LNG Technology”). Although GTT argued that the tying of its patented LNG Technology together with its container tank engineering assistance services (the “Engineering Services”) is inseparable, the KFTC determined that this tying is illegal. The KFTC decision reaffirms the principle that there are limits to the activities of a market dominant patent holder. This case is summarized in greater detail below.Bill to Amend the Monopoly Regulation and Fair Trade Act Passed by the National Assembly
22nd December 2020 In August 2018, the Korea Fair Trade Commission (the KFTC) drafted a bill to substantially amend the Monopoly Regulation and Fair Trade Act (the MRFTA) and submitted the amendment bill to the National Assembly in November 2018. However, only certain portions of the amendment bill which dealt with procedural regulations were passed by the National Assembly on April 29, 2020, and the remaining portions of the amendment bill automatically expired without further action at the end of the term of the 20th National Assembly in May 2020.Korea introduces new law strengthening protection against intentional infringement of IP rights
27th October 2020 Following the July 2019 amendment to the Patent Act introducing punitive damages for patent infringement, the Korean National Assembly has since passed additional legislation to strengthen the protection of IP rights. The new legislation includes amendments to the Trademark Act, the Design Protection Act and the UCPA (Unfair Competition Prevention and Trade Secret Protection Act), introducing punitive damages for trademark and design infringement and idea theft, as well as an amendment to the Patent Act, removing the requirement of a complaint from the injured party to initiate a criminal case for patent infringement. The amendments to the Trademark Act, Patent Act and Design Protection Act will become effective October 20, 2020, and the UCPA amendments April 21, 2021. All of the amendments will be applicable to infringing acts or thefts arising after the amendments go into effect. A brief summary of the amendments follows:KFTC Announces the Proposal for the “Fair Intermediation Transactions on Online Platform Act”
27th October 2020 One of the most significant changes brought upon by COVID-19 is the increase in contact-free transactions, which triggered rapid increases in the market concentration of the online platform industry. In response to such changes, the Korea Fair Trade Commission (the KFTC) proposed the “Fair Intermediation Transactions on Online Platform Act” (the Online Platform Act) to enhance the transparency and fairness in online platform transactions.Proposed Pharmaceutical Affairs Act Amendment Regarding Patent-Approval Linkage System
2nd September 2020 On August 20, 2020, the Ministry of Food and Drug Safety (“MFDS”) announced a proposed amendment to the Pharmaceutical Affairs Act (“PPA”) aimed to address certain deficiencies in the Patent-Approval Linkage System that went into effect in 2015. Key features of the proposed amendment may be summarized as follows.Key Tax Law Amendments in the Draft 2020 Tax Revision Bill
24th August 2020 On July 22, 2020, the Ministry of Economy and Finance publicly released the 2020 draft Tax Revision Bill (the ‘Draft Bill’).Amendments to the Personal Information Protection Act and Credit Information Use and Protection Act
17th August 2020 Amendments to the Personal Information Protection Act (‘PIPA’) and Credit Information Use and Protection Act (‘Credit Information Act’) that were promulgated on February 4, 2020 took effect on August 5, 2020, along with their respective implementing regulations that were also amended to reflect the changes in the two laws. By balancing the need for the protection of personal information against the need for its wider use, the amended laws aim to pave the way for a data-driven economy. In practice, the sweeping nature of the amendments are expected to bring about significant changes in the way personal information is processed in Korea.I. Amendments to the PIPA and the Enforcement Decree of the PIPAThe amendments to the PIPA include, among others:- the introduction of pseudonymized information and the legal basis for using pseudonymized information for research and statistical purposes without the data subject’s consent;
- the introduction of the compatibility concept;
- the transfer of the Act on the Promotion of Information and Communications Network Utilization and Information Protection’s (‘Network Act’s’) personal information-related provisions to the PIPA; and
- the elevation of the Personal Information Protection Commission’s (‘PIPC’s’) status to the sole supervisory authority responsible for the enforcement of the PIPA (accordingly, personal information protection matters that are currently handled by multiple agencies (i.e., the Ministry of the Interior and Safety and the Korea Communications Commission) will all be handled by the PIPC instead).Meanwhile, the amendments to the Enforcement Decree of the PIPA that have been adopted include, among others:
- the specification of rules regarding the use and management of pseudonymized information such as the security measures which must be implemented and the specification of the procedures for combining pseudonymized information among different entities;
- the specification of the standards used to determine compatibility;
- the transfer of the personal information-related provisions in the Enforcement Decree of the Network Act to the Enforcement Decree of the PIPA; and
- the addition of certain types of information to the scope of ‘sensitive information.’Further details on the above changes are provided below.(1) Use of Pseudonymized Information(A) Security Measures for Pseudonymized InformationUnder the amended PIPA, the stringent consent-oriented regulations on processing have been relaxed, allowing data handlers to process pseudonymized information without the consent of the data subject for purposes including statistical compiling, scientific research, and record preservation for the public interest. However, in order to minimize the risk of re-identification and any other harm that may be caused to data subjects in relation to the processing of pseudonymized information, the PIPA requires that anyone who processes pseudonymized information must implement certain statutorily-prescribed security measures. The amended Enforcement Decree of the PIPA specifies these security measures as follows:
- The same security measures that are required with respect to general personal information must be implemented for pseudonymized information as well. In other words, the security measures stipulated under the ‘Standards of Personal Information Security Measures’ must be taken. (The ‘Standards of Personal Information Security Measures,’ which is an implementing regulation of the PIPA, sets forth the detailed security measures that must be applied to general personal information under the PIPA.)
- Pseudonymized information and additional information (i.e., information which can be used to identify a specific individual by restoring the pseudonymized information to its original state) must be stored separately, and access rights to each of these two types of information must also be segregated in order to prevent the re-identification of the pseudonymized information through the use of the additional information.(B) Restriction on Combining Pseudonymized InformationAlthough the amended PIPA promotes the use of pseudonymized information, combining pseudonymized information between different entities is restricted in that the process may be conducted only by professional institutions designated by the PIPC (‘Specialized Agencies’) or by the head of a pertinent central administrative agency, which currently is a requirement unique to Korea. Also, the combined information may only be transferred out of the Specialized Agency after obtaining the approval of the head of the said institution. The detailed process and method of combining pseudonymized information is stipulated in the amended Enforcement Decree of the PIPA.Under the amended Enforcement Decree of the PIPA, an entity that wishes to combine pseudonymized information (‘Applying Entity’) must first submit its request/application to the Specialized Agency. After the Specialized Agency combines pseudonymized information in a way that makes the specific data subject unidentifiable, the Applying Entity must pseudonymize or anonymize such combined information in a space where technical, organizational and physical measures necessary for the secure processing of personal information have been implemented, installed at the Specialized Agency. The Applying Entity must obtain the approval of the Specialized Agency in order to be able to export the combined information, in which case the Specialized Agency applies the following criteria in determining whether to grant the request:
- the purpose for which the pseudonymized information has been combined is related to the information to be exported;
- there is no likelihood that an individual might be identified due to such export of information; and
- measures are taken to ensure the security of the information to be exported.Once the Specialized Agency approves the export request, they may bill the Applying Entity for the costs associated with the combination and export of the pseudonymized information. More details on the combining and removal of pseudonymized information will be provided in the ‘Public Notice on the Combination and Removal of Pseudonymized Information’ to be issued by the PIPC. (2) Compatibility Provision - Standards for the Further Use and Provision of Personal Information within the Scope Reasonably Related to the Original Purpose of CollectionThe amended PIPA allows data handlers to use or provide personal information to a third party without the consent of the data subject if the scope of such further use or provision is within the scope reasonably related to the original purpose of the collection. As such, the amended Enforcement Decree of the PIPA provides detailed standards on what qualifies as ‘reasonably related to’ (i.e., compatible with) the original purpose of collection. In making this determination, the following factors are to be considered:
- the processing is related to the original purpose for which the personal information was collected;
- the processing was foreseeable in light of the circumstances surrounding the collection of such personal information or the customary practice of processing such personal information;
- the processing does not unfairly infringe the rights and interests of the data subject; and
- whether pseudonymization, encryption, or other necessary safeguards to ensure the security of the personal information have been implemented.The amended Enforcement Decree of the PIPA also requires that (i) the data handler disclose the standards which form the basis on which the above factors are assessed in its privacy policy and (ii) the Chief Privacy Officer check whether the further use and provision of personal information occurs in accordance with these standards. (3) Others(A) Transfer of Network Act’s Personal Information-related Provisions to the PIPAPrior to the PIPA’s amendment, regulations on the processing of personal information by information and communications service providers and recipients of personal information provided by such information and communications service providers were set forth in the Network Act.However, in line with the transfer of such provisions to the PIPA, the personal information-related provisions under the Enforcement Decree of the Network Act have also been transferred to the Enforcement Decree of the PIPA. Examples of such provisions include those on the implementation of security measures, method for confirming the legal guardian’s consent, method of notification and report of personal information leakages, destruction of personal information of inactive users (i.e., users who have not shown any account activity for at least 1 year), notification of personal information usage details/records, and criteria for calculating penalty surcharges.(B) Expanded Scope of Sensitive InformationUnder the amended Enforcement Decree of the PIPA, (i) biometric data such as fingerprint, iris, and face and (ii) race and ethnicity data are newly added to the scope of sensitive information, which was previously defined to just include information on an individual’s ideology, creed, membership of a labor union or political party, political view, health, sexual preferences, genetic information, and criminal records.(C) Additional DevelopmentsFollowing the enforcement of the amended PIPA and its Enforcement Decree, the PIPC is expected to issue more practical guidance on the standards for pseudonymization and combining pseudonymized information through the ‘Pseudonymization Guidelines’ and ‘Guidelines on the Combination and Export of Pseudonymized Information,’ respectively. The current ‘Manual on Personal Information Protection Laws, Guidelines, and Public Notices’ will also be updated to reflect the recent amendments to the PIPA and its Enforcement Decree. II. Amendments to the Credit Information Act and the Enforcement Decree of the Credit Information Act The amendments to the Credit Information Act are broader and more diverse than the amendments to the PIPA as they include provisions on data protection as well as the regulatory system for the use and management of credit information (please see our previous newsletter for more information).This newsletter will discuss the provisions in the amended Credit Information Act and the amended Enforcement Decree of the Credit Information Act relating to data protection which may be enforced by the Financial Services Commission (‘FSC’)/Financial Supervisory Service (‘FSS’) (if provisions apply to financial companies) or the PIPC (if provisions apply to non-financial companies which process personal credit information). Thus, the Credit Information Act will apply ahead of the PIPA where an entity processes personal credit information regardless of whether such entity is in the financial sector or not.As in the case of the amended PIPA, the amended Credit Information Act also provides legal grounds for the processing of pseudonymized information without consent and introduces the compatibility concept. However, the amended Acts may differ, in terms of the permitted scope of data processing without consent and other details in application, so companies are advised to review closely these differences when processing pseudonymized information. Also, unlike the amended PIPA, the amended Credit Information Act contains provisions (taking effect from February 4, 2021) which (i) grants data subjects the right to request financial companies and public institutions to transmit their personal credit information to other financial companies (i.e., the right to data portability) and (ii) streamlines (simplify and visualize) the consent process so that data subjects may provide their informed consent more easily.Accordingly, the amended Enforcement Decree of the Credit Information Act contains detailed provisions related to the processing pseudonymized information, the right to data portability, and streamlining of the consent process. For this newsletter, we summarize in greater detail below the provisions related to the processing of pseudonymized information as follows: (1) Security Measures for Pseudonymized InformationSimilar to the amended PIPA, the amended Credit Information Act requires the implementation of certain security measures to ensure the safety of pseudonymized information. Accordingly, the amended Enforcement Decree of the Credit Information Act sets forth detailed standards of such security measures and measures necessary to prevent pseudonymized information from being combined with additional information. However, there are certain important differences between the measures required under the respective Acts. For example, with respect to the specific security measures which must be taken for pseudonymized information, if the Credit Information Act applies then security measures prescribed by the ‘Regulations on the Supervision of Credit Information Businesses’ (issued under the Credit Information Act) will need to be implemented as opposed to the security measures prescribed by the ‘Standards of Personal Information Security Measures’ (issued under the PIPA). As such, it would be advisable for companies to review closely these differences when processing pseudonymized information. (2) Restriction on Combining Pseudonymized InformationSimilar to the amended PIPA, the amended Credit Information Act provides that the combination of pseudonymized information managed by different data handlers may be performed only by a Specialized Agency. However, because the details on the combination process and the Specialized Agencies permitted to combine pseudonymized information are different under the amended PIPA and the amended Credit Information Act, it will be important to confirm which law applies to the situation at hand to ensure the request for the combination of pseudonymized information is made to the appropriate Specialized Agency. (3) Retention Periods for Pseudonymized InformationThe amended PIPA and the amended Enforcement Decree of the PIPA do not impose any particular restrictions on the retention of pseudonymized information. Thus, unlike in the case of ordinary personal information, there is no requirement to retain pseudonymized information only for the minimum duration necessary to achieve the purposes of processing. On the other hand, the amended Enforcement Decree of the Credit Information Act provides that pseudonymized information may be retained past the retention period of ordinary personal credit information only when retention is within a pre-determined retention period set after considering the following:
- level of administrative, physical, and technical protection needed to protect the pseudonymized information and additional information;
- effect on the credit information subject in the event re-identification takes place through the pseudonymized information;
- possibility of re-identification from the pseudonymized information; and
- the purpose for the processing of the pseudonymized information and the minimum duration necessary to achieve such purpose.The FSC published additional guidance on the safe processing of anonymized data and pseudonymized information through its ‘Guide to the Processing of Anonymized and Pseudonymized Information in the Financial Sector’ on August 6. Meanwhile, the ‘Regulations on the Supervision of Credit Information Businesses,’ which further specify certain matters prescribed by the amended Enforcement Decree of the Credit Information Act, are also expected to be soon published by the FSC.
Key Tax Law Amendments in the Draft 2020 Tax Revision Bill
17th August 2020 On July 22, 2020, the Ministry of Economy and Finance publicly released the 2020 draft Tax Revision Bill (the ‘Draft Bill’).Amidst the increasing risk of a global recession caused by the COVID 19 pandemic, the Draft Bill aims to: (i) promote investment and spending; (ii) enhance tax benefits to low-income earners and mid-sized and small-sized enterprises; and (iii) provide tax incentives for job creation in order to minimize the negative economic impact of COVID 19. The Draft Bill is also seeking to harmonize the Korean tax system to changes occurring in the global economy, to ease compliance burdens, and to avoid double taxation.A summary of some key tax law proposals in the Draft Bill is provided below.Important Upcoming Changes to the Korean Electricity Business Act regarding Solar Farm Developments
5th August 2020There have been recent amendments to the Electricity Business Act (‘EB Act’) (the main Act governing the granting of permits required to develop and operate renewable energy projects in Korea) that are likely to affect a large majority of potential investors in Korean solar farm projects. As is discussed below, the legislative amendments are due to take effect in October of this year and there is currently scope for interested parties to make submissions in respect to some of the more important potential exceptions to be enacted. There are a number of changes, however, the most significant change includes a prohibition on the sale or acquisition of a solar farm business prior to the relevant business reaching commercial operation. Although the changes were introduced in March 31, 2020 the relevant exceptions to the most important rule change have only recently been published for public comment. Given the importance and potential impact of the changes, Lee & Ko has prepared a brief summary of the anticipated changes and draft exceptions. Further, and for convenience, we have also included the relevant details on how to make submissions (below).
Important Upcoming Changes to the Korean Electricity Business Act regarding Solar Farm Developments
16th July 2020There have been recent amendments to the Electricity Business Act (‘EB Act’) (the main Act governing the granting of permits required to develop and operate renewable energy projects in Korea) that are likely to affect a large majority of potential investors in Korean solar farm projects. As is discussed below, the legislative amendments are due to take effect in October of this year and there is currently scope for interested parties to make submissions in respect to some of the more important potential exceptions to be enacted. There are a number of changes, however, the most significant change includes a prohibition on the sale or acquisition of a solar farm business prior to the relevant business reaching commercial operation. Although the changes were introduced in March 31, 2020 the relevant exceptions to the most important rule change have only recently been published for public comment. Given the importance and potential impact of the changes, Lee & Ko has prepared a brief summary of the anticipated changes and draft exceptions. Further, and for convenience, we have also included the relevant details on how to make submissions (below).
News Alert – Recent Amendment to Korean Patent
16th July 2020New hybrid approach covering full scope of infringing sales (lost profits + reasonable royalty)
On May 20, 2020, the Korea National Assembly approved a bill to amend the Patent Act, adopting a so-called hybrid damages approach – where a patentee will be entitled to seek a royalty, as additional damages, for sales that exceed the patentee’s production capacity. Lost profits for infringing sales up to the patentee’s production capacity will remain in place.
COVID-19 Outbreak: Managing Legal Issues from the Korean Law Perspective
16th July 2020 While Korea has had considerable success in containing and curtailing the first wave of the novel coronavirus outbreak (‘COVID-19’), the ongoing spread of the pandemic continues to disrupt the global economy, significantly impacting businesses and companies in all industries worldwide. As a result, businesses and companies both within Korea and throughout the world are increasingly confronting a wide range of legal issues – including, for example, whether the concept of force majeure, the doctrine of frustration of contract or hardship may be invoked upon as an excuse under a contractual relationship. In addition, discussions on whether recent governmental regulations and restrictions intended to contain the COVID-19 outbreak may in and of itself be qualified as a force majeure event (or an event that gives rise to the application of the doctrine of frustration of contract or hardship) is also being considered as a separate but important related topic as well.Latest Supreme Court Decision Sets New Standards for Inventiveness
17th June 2020Benefit of invention now a more important factor for inventiveness
On May 14, 2020, the Supreme Court held, for the first time, that even if there are no facially apparent difficulties in combining certain prior art technologies to arrive at a particular patented invention, such combination would not be easy and thus inventiveness of the claim at issue should not be denied where the benefit of the claimed invention is hard to predict.Amendments to the Pharmaceutical Affairs Act to Strengthen Administrative & Criminal Sanctions for Data Manipulation Related to Applications for Regulatory Approvals
19th May 2020 On April 7, 2020, an amendment to the Pharmaceutical Affairs Act (the ‘PAA’) came into effect to provide a statutory basis for administrative and criminal sanctions to be enforced against companies that have obtained regulatory approval for a drug product through deceitful or otherwise improper means.Amended Act on Reporting and Using Specified Financial Transaction Information Now Governs Virtual Assets
13th March 2020 The amendment to the Act on Reporting and Using Specified Financial Transaction Information (hereinafter, the “Specified Financial Information Act”), which defines cryptocurrency as a “virtual asset” and focuses on a reporting system for cryptocurrency exchanges, was ratified in the National Assembly’s plenary session on March 5, 2020.Recent Decision by the Tax Tribunal Regarding Application of the Flat Tax Rate to Foreign Employees
11th March 2020 Application of the flat tax rate to “a foreign employee who worked in Korea for a period which ended before January 1, 2014, and recommenced working in Korea after January 1, 2014”Implementation of Pre-approval System for Cross-border M&A for Companies with National Core Technology
24th February 2020 The Act on Prevention of Divulgence and Protection of Industrial Technology (the “Act”) provides for the protection of national core technologies held by Korean companies, research institutes, professional institutions and universities (each a “Protected Entity”) and prevention of their leakage. The Act was revised as of February 21, 2020 and the revised Act was went into effect on the same day. The revised Act introduces hurdles for any foreign investor seeking to obtain control over a Protected Entity (whether through a direct investment, merger or joint venture) (“Triggering Transaction”) by introducing new pre-approval and pre-notification requirements. For a Protected Entity that holds any national core technology developed with national R&D funding, the pre-approval requirement applies, which in principle prohibits any Triggering Transaction and provides for limited exceptions. For a Protected Entity that holds any national core technology developed without national R&D funding, the pre-notification requirement applies, which in principle allows any Triggering Transaction with exceptional cases for blocking it. Any foreign investor or company seeking to obtain control over a Korean company with a strong technology portfolio would need to diligence on whether any such technology is classified as a national core technology and, if so, whether it was developed with national R&D funding and assess whether any exception may be applicable.New Supreme Court Decision Constrains Patentee’s Strategic Use of Correction Petition in Pending Patent Case
6th February 2020 On January 22, 2020, the Supreme Court ruled, en banc, that if a petition to correct a patent specification or drawings is granted after the conclusion of the appellate phase of a patent invalidation action, the decision granting such petition cannot be a ground for retrial under Article 451, Paragraph 1, Subparagraph 8 of the Civil Procedure Act. In doing so, the Court reversed all prior Supreme Court decisions that remanded the case for a retrial based on the same ground (Supreme Court En Banc Decision No. 2016Hu2522).Major Amendments to the Credit Information Act Passed by National Assembly
23rd January 2020 On January 9, 2020, amendments to the Credit Information Use and Protection Act (“Credit Information Act”) were passed during a plenary session of the National Assembly. These amendments to the Credit Information Act (“Amendments”) were passed in tandem with respective amendments to the Personal Information Protection Act ("PIPA”) and the Act on Promotion of Information and Communications Network Utilization and Information (“Network Act”). The PIPA, the Network Act, and the Credit Information Act are collectively referred to as Korea’s 3 major data privacy laws (“Three Data Laws”). The main objectives behind the Amendments are (1) promotion of the data economy in the financial sector by, inter alia, establishing the statutory basis for the analysis and utilization of big data, (2) reform of the legal framework for the regulation of industries related to credit information by, inter alia, introducing the concept of credit information self-management (“MyData”) and revamping the existing system for regulating credit bureaus (“CBs”) that carry out credit evaluations of individuals, and (3) reinforcement of data protection in the financial sector by, inter alia, introducing the right to request transmission of personal credit information and the right to challenge decisions based on profiling.The Amendments are expected to serve as a catalyst for the increased utilization of big data and convergence of data in the financial sector, and lead to the emergence of innovative services (e.g., customized financial services catering to the needs of individual customers) and new industries related to data (e.g., MyData services, non-financial CBs). In addition, the Amendments have been designed to enhance interoperability with the European Union’s General Data Protection Regulation (“GDPR”) as well as the data protection regulations of other countries and thus, are expected to facilitate the processing of data by Korean companies when they conduct business abroad.The Amendments are expected to go into effect in late July or early August of this year (which will be 6 months from their promulgation date). Key provisions of the Amendments are summarized below.1. Key Provisions of the Amendments- In line with the aforementioned amendments to the PIPA, the Amendments also introduce the concepts of “pseudonymized information”, “pseudonymization”, and “anonymization”. Please refer to our newsletter dated January 14, 2020 (“Major Amendment to the Personal Information Protection Act Passed by National Assembly”) for more information on these concepts.
- The Amendments permit credit information handlers to provide personal credit information to third parties without the consent of personal credit information subjects to the extent such provision is not inconsistent with the original purpose of collection after considering factors such as the circumstances surrounding the collection of personal credit information, the potential impact to personal credit information subjects, and whether necessary safeguards have been implemented to ensure the security of personal credit information.
- The Amendments breakdown CBs into subcategories (whereas under the current Credit Information Act, CBs are defined rather broadly without such distinction) such as “CBs for individuals,” “CBs for sole proprietorships,” and “CBs for corporations” while relaxing regulatory entry barriers for each subcategory. In addition, CBs are no longer prohibited from engaging in other types of commercial enterprise so long as there is no risk of harming credit information subjects or undermining the soundness of credit transactions due to such commercial endeavors.
- The concept of MyData services will be introduced which will allow individuals to, among other things, conduct integrated searches of their own credit information as well as carry out credit and asset self-management.
- The consent system will be streamlined (simplified and visualized) to enable credit information subjects to provide their “informed consent” and a rating system will be introduced for the use of information, such that different ratings will be assigned to the use of information depending on the risk(s) and benefit(s) associated with such use so that credit information subjects can make informed decisions when providing their consent (taking effect within 1 year from the promulgation date of the Amendments).
- Credit information subjects will be granted the right to challenge (i.e., request explanations and raise objections) decisions based on profiling (i.e., automated processing of data to evaluate certain things about an individual).
- Credit information subjects will be granted the right to request financial companies and public institutions to transmit their personal credit information (i.e., right to data portability of personal credit information) to other financial companies (taking effect within 1 year from the promulgation date of the Amendments).
- The maximum amount of punitive damages that may be imposed on financial companies and other credit information handlers in connection with the leakage of personal credit information has been increased to 5 times (from the current 3 times) the amount of proven damages.
- With the introduction of the concepts of pseudonymized information and anonymized information, companies are advised to review the scope of data processing that will be permitted under the amended Credit Information Act without the need to obtain consent as well as the methods to utilize pseudonymized information, safeguards to prevent the combination of data, and ex post facto control measures.
- In light of the expected changes in the legal framework for the regulation of CBs, companies planning to expand into the CB business are advised to carefully consider the conditions for entry into this business segment, potential synergies with their existing business, and growth opportunities as well as constraining factors.
- With the introduction of MyData services, the Amendments will serve to minimize entry barriers for Fintech companies. Accordingly, companies planning to provide MyData services are advised to begin preparations in advance to obtain necessary licenses and approvals.
- Companies are advised to pay special attention to the changes to the legal provisions governing consent and the newly created rights that will be granted to credit information subjects under the amended Credit Information Act. In particular, financial regulatory authorities are expected to establish and announce corresponding amendments to consent forms and other detailed measures prior to the effective date of the amended Credit Information Act and thus, companies are advised to continue monitoring related developments on this front.
- Given that the Financial Services Commission has announced its intention to hold future discussions to canvass public opinion for corresponding amendments to the implementing rules (e.g., the Enforcement Decree of the Credit Information Act) of the Credit Information Act, companies are advised to closely monitor the amendment process and to provide their input as necessary to promote their business interests.
- Companies are also advised to closely review the amendments to the PIPA and the Network Act that were passed by the National Assembly along with the Amendments, and make the necessary preparations to their practices in light of the changes that are expected to occur once these amendments take effect.
Korean Tax Law Adopts New Simplified Transfer Pricing Rules relating to Low Value-adding Intra-group Services
20th January 2020 With the recent pre-announcement of a draft amendment to the Enforcement Decree of the International Tax Coordination Law (“EDITCL”), Korean tax law is expected to adopt simplified transfer pricing requirements relating to “low value-adding intra-group services”, as laid out in Action 10 of the OECD BEPS Report.Major Amendment to the Personal Information Protection Act Passed by National Assembly
15th January 2020 On January 9, 2020, amendments to Korea’s 3 major data privacy laws (“Three Data Laws”), i.e., Personal Information Protection Act (“PIPA”), Act on the Promotion of Information and Communications Network Utilization and Information Protection (“Network Act”), and Credit Information Use and Protection Act (“Credit Information Act”), were passed at a plenary session of the National Assembly of Korea.Greater Reforms for Promoting Work-Life Balance – Changes to the Gender Equal Employment….
18th October 2019Greater Reforms for Promoting Work-Life Balance – Changes to the Gender Equal Employment and Work-Life Balance Support Act
Starting 1 October 2019, employees would benefit from significant changes to the Gender Equal Employment and Work-Life Balance Support Act (“GEEA”), particularly concerning paternity leave and workhours reduction for childcare and family care. These changes are also expected to have material implications for employers with regard to general compliance obligations and require employers to review their practices in engaging employees and other workforce flexibility measures to adapt to the legislative changes. We have summarized the notable changes as follows.
Korea strengthens protection of national core technology and industrial technology (Amendment of the Prevention of Divulgence and Protection of Industrial Technology Act)
2nd October 2019 On August 20, 2019, an amendment of the Prevention of Divulgence and Protection of Industrial Technology Act (hereinafter “PITA”) was passed and shall come into effect on February 21, 2020. The new amendment is likely to affect technology companies as the scope of national core technology and industrial technology under PITA is broadly defined by the Ministry of Trade, Industry and Energy (MOTIE).Lee & Ko successfully represents Big Hit Entertainment against unauthorized use of BTS’ photos
20th August 2019 Lee & Ko, on behalf of Big Hit Entertainment (“Big Hit”), obtained the first-ever decision in Korea to recognize the entertainment companies’ right to independently request for injunction against those who free-ride on the customer attractiveness that is based off of popularity and fame of the artists managed by the companies. This landmark decision is expected to serve as an important pedestal in protecting the legitimate interest of entertainment companies (domestic as well as international) that manage famous artists and entertainers and remain vulnerable to unfair competition of free-riders.First- Ever Decision by the Supreme Court of Korea …
15th August 2019First- Ever Decision by the Supreme Court of Korea to Find Copyright Infringement in the Selection, Arrangement or Combination of Game Elements
Key International Tax Law Amendments in the Draft 2019 Tax Revision Bill
14th August 2019 On July 25, 2019, the Ministry of Economy and Finance publicly released the 2019 draft Tax Revision Bill (the “Draft Bill”). The Draft Bill is expected to be sent to the National Assembly on September 3, 2019 for deliberation and adoption.Russian Court’s Judgment Recognized for Enforcement in Korea
15th May 2019 Recently, based on the premise that requirements for “mutual guarantee” or “reciprocity” in relation to the recognition and enforcement of foreign judgments can be allowed between Russia and Korea, a District Court of Korea rendered its decision which allowed a judgment concluded by a Russian court to be enforceable in Korea (see Changwon District Court, Decision 2018Gahap51099 held on January 17, 2019).Korean National Assembly Passes “Blind Hiring” Bill to Reform Hiring Culture
13th May 2019 Recently, the National Assembly of Korea passed legislative amendments to the Fair Recruitment Procedure Act (“FRPA”) as part of the reform efforts to address the country’s recruitment culture. The latest amendment – dubbed the “blind hiring” bill – expands the FRPA to prohibit any type of recruitment irregularities (e.g., improper solicitation, coercion, pressure) and, more importantly, bars employers from asking jobseekers to provide any information unrelated to the position and the applicant’s merit. The amended FRPA will go into effect starting July 17, 2019.Korean Financial Supervisory Service Mandating Disclosure of Transaction Documents When Filing Repor
13th May 2019Korean Financial Supervisory Service Mandating Disclosure of Transaction Documents When Filing Report on Material Facts
In light of the recent amendment to the internal policies of the Financial Supervisory Service of Korea (FSS), companies that file a “Report on Material Facts” on or after April 29, 2019, will also be required, as a matter of principle, to disclose the underlying transaction documents in full.
Successful Challenges to Korean Health Insurance Regulator’s 13-Year Old System…
5th April 2019Successful Challenges to Korean Health Insurance Regulator’s 13-Year Old System of Automatic Reduction of Original Drug Price
The Seoul Administrative Court and the Seoul High Court issued orders suspending the automatic reduction of the price of the original drug “A” upon generic entry claiming patent non-infringement and the automatic reduction of the price of the original drug “B” upon generic entry claiming patent invalidity, respectively. The automatic price reduction of the original drug B has been continuously suspended since the Administrative Commission’s suspension order issued in April 2018.
Korean Supreme Court Confirms Licensee’s Standing to Challenge Patent Validity
12th March 2019On February 21, 2019, the Supreme Court of Korea issued an en banc decision overruling its prior precedents on the issue of whether a licensee who is continuing to make royalty payments under an existing license agreement nevertheless has standing to challenge the validity of the licensed patent. In short, the Korean Supreme Court held that absent special circumstance, a patent licensee is an “interested party” eligible for challenging the validity of a licensed patent, despite the lack of any threat or potential threat posed by the patent holder against the licensee’s right to use the patented invention. (Supreme Court En Banc Decision No. 2017Hu2819).
Amendments to the KFTC Merger Review Guidelines
12th March 2019The Korea Fair Trade Commission (the “KFTC”) recently amended its Guidelines for Merger Review (the ”Guidelines”), which took effect from February 27, 2019. The Guidelines now provide for particular issues relating to “innovation markets” and “big data” that will be considered during the KFTC’s review of mergers within R&D-intensive (i.e. innovative) industries.
Korea strengthens protection against IP infringement and unfair competition (Amendment of the Patent
20th February 2019Korea strengthens protection against IP infringement and unfair competition (Amendment of the Patent Act and the Unfair Competition Prevention Act)
On December 7, 2018 the Korea National Assembly approved a bill to amend the Patent Act and the Unfair Competition Prevention and Trade Secret Protection Act (“UCPA”). Highlights of the proposed amendments include stronger penalties for patent infringements and further relaxation of the burden of proof for patent holders. The amendments are to be effective on July 9, 2019.
Key Changes to Korean Labor Standards Act in 2019
19th February 2019Key Changes to Korean Labor Standards Act in 2019
In 2018, Korea experienced major reforms to the employment laws including, but not limited to, the Labor Standards Act. For example, many employers scrambled – many are still struggling – to adjust their work hour structures to comply with the new 52-hour work hour limit. In 2019, legislative reforms and amendments proposed in 2018 have taken effect. For your information, we have highlighted two major changes in the employment law landscape for 2019.
Korean TR, Finally and Officially Coming Soon
19th February 2019Korean TR, Finally and Officially Coming Soon
Korea is finally adopting a trade repository (“TR”), which is an infrastructure that collects and stores data related to over-the-counter (“OTC”) derivatives transactions. The Financial Services Commission (“FSC”) has decided to implement the TR system by making amendments to the Regulations on Financial Investment Business (which is aligned with Article 166-2(2) of the FSCMA), instead of making amendments to the Financial Investment Services and Capital Markets Act (“FSCMA”) or its Enforcement Decree, and has approved the amendment as of January 31, 2019. As a result, the TR is expected to be activated in July, 2020 as scheduled. Korea is introducing the TR system in order to improve transparency and systematic risk management in its OTC derivatives market as part of its effort to adhere to the G20 accord.
Direction of Financial Regulatory Environment of Korea in 2019: Legislation Supporting Financial Inn
13th February 2019Direction of Financial Regulatory Environment of Korea in 2019: Legislation Supporting Financial Innovation and Reform of Supervisory System
For 2019, it is expected that the financial regulatory/legislative environment will see further developments along two key tracks, with one track consisting of the enactment of special laws favoring new business initiatives aimed at promoting innovation in the financial business sector, and the other track consisting of legislative activity aimed at reforming and improving the existing financial supervisory system to promote greater efficiency and integration. The following specific examples of legislation are representative of the overall direction planned for the financial regulatory environment in the year ahead.
Korean Financial Regulators Advance Legislation to Introduce Regulatory Sandbox to Spark FinTech
17th January 2019Korean Financial Regulators Advance Legislation to Introduce Regulatory Sandbox to Spark FinTech
The 2018 year in review in Korea was notable for the sluggish overall economy, uncertainty surrounding the geo-politics and impact on Korea due to the global trade wars, on-going concerns related to the lack of jobs and unemployment, increased taxes and burdens for businesses and families, and no meaningful improvement or clarity in the current situation for 2019. In response, the Korean National Assembly passed a legislation called the Financial Innovation Support Act (the “FinISA”) on December 7, 2018 to spark the financial services industry in conjunction with FinTech products and services. The FinISA, which will soon take effect in March 2019, is intended to lay the legal foundation to introduce a regulatory sandbox for innovative financial services, where FinTech firms test their new products and services without certain regulatory oversight pursuant to exemptions for a limited period of time (“Sandbox”). As the FinISA exempts or defers application of existing finance-related regulations for new financial technology, products or services with the purpose of fostering the creation of innovative and new financial products and services, it will also support the stabilization of such services in the financial services market at the end of the testing period and is expected that the FinISA will support a revitalization of the FinTech industry which experienced sluggish growth in recent times. In particular, as companies and investors become more interested in security tokens and Security Token Offerings (“STO”) which are regulated by the Financial Investment Services and Capital Markets Act (the “FSCMA”), there have been on-going discussions and debates as to whether the FinISA could lead to a breakthrough in the crypto-asset industry based on blockchain technology. Crypto assets encompasses those assets which utilize blockchain technology where the asset is digitalized by utilization of cryptography, peer-to-peer networks and a public ledger of verified transactions resulting in a ‘units’ of such a crypto asset without any involvement by middle-persons or brokers (e.g., cryptocurrency.
New Legislation: Amendment to the Enforcement Decree of the Act on External Audit of Stock Companies
9th January 2019 New Legislation: Amendment to the Enforcement Decree of the Act on External Audit of Stock Companies The amendment to the Act on External Audit of Stock Companies (the “Act”) and the enforcement decree thereof (the “Enforcement Decree”), whose key feature pertains to the external audit and disclosure requirements for limited liability companies, became effective as of November 1, 2018. Certain provisions relating to the category of targets of external audits will become effective with respect to the fiscal years that commence on or after November 1, 2019. Therefore, for the majority of companies whose fiscal years begin on January 1 and ends on December 31 of each year, the revised category will become effective with respect to the fiscal year that begins on January 1, 2020.Flying Under the Radar
9th January 2019Flying Under the Radar: Companies Must Increase Awareness of the Potentially Dormant and Disruptive Changes to the Minimum Wage in Korea
Korea has experienced unprecedented yearly increases to the statutory minimum wage since 2017 in addition to changes in the applicable legislation. While companies are aware of the more patent impacts of the recent major changes to the Labor Standards Act and have initiated proactive measures to ensure legal compliance, companies often overlook the impacts of the significant changes to the statutory minimum wages and associated legislation until it is too late. And as an employer may face criminal sanctions (i.e., imprisonment up to 2 years or criminal fine not exceeding KRW 20 million) for unpaid wages, companies must be aware of the changing legislation related to the statutory minimum wage and – as with changes to the Labor Standards Act – take proactive measures to ensure continued legal compliance.
New Proposed Tax Law Amendments Provide Clarification on the Taxation of Foreign Funds
26th November 2018On July 30, 2018, the Korean Ministry of Economy and Finance (“MOEF”) announced the proposed tax law changes/amendments for 2019 and beyond (“Proposals”). The Proposals are expected to be reviewed and finalized by the Korean National Assembly in December 2018.
Some key Proposals that should be of great interest to private equity funds and other investors relate to the Korean taxation of a foreign collective investment vehicle, referred to as an Overseas Investment Vehicle (“OIV”) in the Korean tax law. An OIV is broadly defined as an overseas vehicle that raises funds through an investment offering, manages investment assets, derives value from the acquisition and disposition of such assets, and distributes such derived value to its investors. Consequently, partnerships, limited liability companies and other types of collective investment vehicles (e.g., trusts) would likely be included in the definition of OIV.
The key provisions of the Proposals in relation to an OIV that will impact tax planning for foreign funds are summarized below.
KFTC to Expand Scope and Penalties of Korea’s Antitrust Enforcement Regime
22nd November 2018Korea’s competition authority, the Korea Fair Trade Commission (the “KFTC, has announced a proposal to expand its existing enforcement authority to the courts and prosecutors through a full-scale reform of the Monopoly Regulation and Fair Trade Act, Korea’s primary competition statute. If all proposed reforms are passed by the National Assembly as currently drafted, the impact on the Korean economy and antitrust enforcement will require companies doing business in Korea to tighten their risk management and compliance measures, as the scope and penalties of Korean antitrust enforcement would be broadened.
The Use of Dispatch Workers: Ironing Out Yet Another Wrinkle for its Successful Implementation
27th February 2017From a purely employer’s perspective, foreign companies operating in Korea are often frustrated (or at times, even amazed) at some of the protections provided to employees under the Korean employment laws. A few of the most difficult legal requirements include the strict just-cause requirement for termination, the durational limits on the use of fixed-term (contract) employees, the statutory severance obligation, and the statutory allowances for overtime, night-time, and holiday works. In light of such requirements and to minimize the burden of potential employer liabilities, many foreign companies may naturally wonder: How can we structure our workforce so that we can preserve an increased degree of flexibility when managing our personnel?
Korea’s New Supreme Court Case Excludes Mileage From Vat Taxation:
27th February 2017Used mileage points interpreted as sales allowance deductible from tax base
If a business operates a customer loyalty program together with other business, in which the amount of mileage points granted for the customers’ primary transaction is deducted from the purchase price of the customers’ secondary transaction and those customers only have to pay the remaining price, the amount deducted from the purchase price during the secondary transaction should not be additionally included as the value of supply(i.e. should not be subject to VAT) of the secondary transaction(Summary of Supreme Court 2015 du 58959, 2016. 08. 26.).
Comparative Guides
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South Korea: Energy – Oil & Gas
Published: December 2021
Authors: Jin Kim Sun Young Yang
This country-specific Q&A provides an overview to Energy – Oil & Gas laws and regulations that may occur in South Korea.
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South Korea: Private Equity
Published: January 2022
Authors: Daehoon Koo Kyu Seok Park Kyung Gyoon Park Hyungmin Joo
This country-specific Q&A provides an overview to Private Equity laws and regulations that may occur in South Korea.
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South Korea: Employment & Labour Law
Published: March 2022
Authors: Sang-Hoon Lee William Kim
This country-specific Q&A provides an overview to Employment & Labour Law laws and regulations that may occur in South Korea.
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South Korea: Mergers & Acquisitions
Published: April 2022
Authors: Ki Wook Kang Kyung Chun Kim Gu Beom Kwon Esther Jingyung Lee
This country-specific Q&A provides an overview to Mergers & Acquisitions laws and regulations that may occur in South Korea.
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South Korea: Tax Disputes
Published: September 2022
Authors: Sunghyun Ryu Tom Kwon Junghong Kim Taekyung Kim
This country-specific Q&A provides an overview to Tax Disputes laws and regulations that may occur in South Korea.
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