Jin & Kim, PLC | Legal Blog

Short AnswerA Korean real estate sale dispute may give rise to different remedies depending on whether the buyer seeks the property itself, wants to exit the transaction, or primarily seeks repayment or damages.Potential remedies include a court order requiring ownership-transfer registration, termination of the agreement for breach, restitution of payments, damages, a provisional disposition pr..

Short AnswerSometimes. Under Article 565 of the Korean Civil Act, a buyer may generally terminate a real estate purchase agreement by expressly giving up the contract deposit, while a seller may generally terminate by offering to return twice the amount of the contract deposit received.This deposit-based termination mechanism is generally available only if the parties have not agreed otherwise a..

Short AnswerIf a seller refuses to complete a Korean real estate sale after signing a binding purchase agreement, the buyer may have several legal remedies depending on the contract and the stage of the transaction.These may include seeking registration of transfer of title, terminating the agreement for breach, recovering amounts already paid, and claiming damages.If there is a risk that the se..

Short AnswerBefore signing a real estate purchase agreement in Korea, a foreign buyer should review more than the purchase price and payment schedule.The buyer should verify the seller’s ownership and authority, mortgages and other encumbrances, trust arrangements, existing tenants and occupants, deposit and termination provisions, closing conditions, vacant possession, and foreign-buyer reporti..

Short AnswerYes. A foreign company can generally acquire and own real estate in Korea, either directly, through a Korean branch, or through a Korean subsidiary.A Korean subsidiary is not automatically required simply because the purchaser is a foreign company.However, the appropriate structure and procedures depend on the type and location of the property, purpose of the acquisition, activities ..

Short AnswerA foreign buyer can generally use funds held overseas to purchase real estate in Korea.However, the payment structure should be confirmed before signing the purchase agreement or transferring a substantial deposit. The applicable procedure can depend on the buyer’s foreign-exchange status, source and location of the funds, payment route, Korean bank arrangements, and whether a repres..

Short AnswerYes. A non-resident foreigner can generally buy real estate in Korea without traveling to Korea.The transaction may be handled through a properly authorized representative in Korea. However, an overseas buyer should coordinate several matters in advance, including the power of attorney, authentication of overseas documents, real estate transaction reporting, foreign exchange procedur..

Short AnswerA foreign company can close its Korean subsidiary, but simply stopping business operations does not terminate the Korean legal entity.For a typical Korean stock company (주식회사), a voluntary closure generally involves:A formal shareholder resolution for dissolutionAppointment or confirmation of a liquidatorCorporate registry filingsNotice to and settlement with creditorsCollection and ..

Short AnswerAs a general rule, a Korean company is a separate legal entity, and its directors are not personally responsible for the company’s debts or business losses merely because they serve as directors.Personal liability may arise, however, where a director breaches statutory or fiduciary duties, violates the company’s articles of incorporation, engages in wrongful conduct, or personally gu..

Short AnswerA Korean subsidiary is a separate Korean legal entity, even if it is wholly owned by a foreign parent company. Korean courts have also recognized that 100% ownership alone does not eliminate a subsidiary’s separate legal personality.A foreign parent can exercise substantial shareholder and governance control, but the Korean subsidiary’s directors and representative director must cont..