Jin & Kim, PLC | Legal Blog

Short AnswerYes. Foreign companies may generally pursue recovery of unpaid invoices and other monetary claims against Korean companies through Korean court procedures.In practice, recovery in Korea often involves three separate stages:Securing an enforceable title through procedures such as a payment order or civil lawsuitPreserving assets through provisional attachment (가압류)Enforcing against id..

Short AnswerIn international contracts involving Korea, enforcement should be considered at the drafting stage. The key issue is often not whether a contract is valid, but whether it can be effectively enforced against assets in Korea through appropriate jurisdiction, governing law, and dispute resolution clauses.Why Does Enforcement Matter in Contract Drafting?In cross-border transactions, a we..

Short AnswerUnder the Korean Private International Act, a contract is governed by the law expressly or impliedly chosen by the parties (party autonomy). However, an implied choice is recognized only where it can be reasonably inferred from the contract terms and surrounding circumstances. Even where a foreign law is chosen, certain mandatory provisions of Korean law may still apply.How Is Govern..

Short AnswerYes. An English-language contract may be valid and enforceable in Korea. However, enforceability in practice depends on governing law, jurisdiction, compliance with mandatory Korean law, and the ability to prove the contract in Korean court proceedings.When Is an English Contract Enforceable in Korea?Under Korean law, a contract is generally enforceable if:The parties have reached a ..

Short AnswerGenerally, not without agreement. A Korean supplier cannot automatically increase the contract price simply because raw material costs, labor costs, exchange rates, transportation costs, energy prices, or production expenses increased after the contract was signed.In most commercial contracts, the supplier remains bound by the agreed price unless the contract contains a price adjustm..

Short AnswerIt depends on the contract, the nature of the product, and the applicable law.A Korean supplier does not automatically have unlimited authority to subcontract production to another company simply because it remains responsible for delivering the finished products.If the contract is silent, the issue may become a dispute over contract interpretation, industry practice, the customer’s ..

Short AnswerPotentially, yes. A force majeure clause may excuse, suspend, or delay contractual performance under Korean law, depending on the wording of the contract and the facts of the case.However, force majeure is not automatically recognized simply because an unexpected event occurred. The affected party generally needs to show that the event was outside its control, not reasonably foreseea..

Short AnswerYes, potentially. Under Korean law, a contract may be changed through emails, messages, purchase orders, meeting minutes, or other business communications if they show that the parties actually agreed to modify the contract.However, later communications do not automatically amend an existing contract simply because one party sent them or the other party did not immediately object.The..

Short AnswerYes, potentially. Under Korean law, the absence of a detailed liability clause does not automatically prevent a party from recovering damages for breach of contract.If a party fails to perform its contractual obligations, the other party may generally seek damages under Korean Civil Act principles. However, the recoverable amount will depend on the type of loss, causation, foreseeabi..

Short AnswerPotentially, yes — but only within limits.If a Korean distributor has already lawfully purchased and obtained ownership of genuine inventory, the distributor may have an argument that it can continue selling that inventory after the distribution agreement ends, unless the contract clearly provides otherwise.However, selling remaining inventory is different from continuing to use the ..