Jin & Kim, PLC | Legal Blog

Short AnswerYes, potentially. However, whether attendance is mandatory depends on which authority is conducting the investigation and what legal procedure is being used.An interview request from the Korea Fair Trade Commission (KFTC), the Personal Information Protection Commission (PIPC), or another regulatory authority is different from questioning by Korean prosecutors or police in a criminal ..

Short AnswerA foreign investor may subscribe for new shares in a Korean company, but the subscription process should be carefully structured.Before subscribing, the investor should confirm that the company has completed the necessary corporate approvals, addressed any existing shareholders' preemptive rights, complied with its articles of incorporation, completed any required foreign investment ..

Short AnswerA shareholders’ agreement in Korea is a private contract among shareholders that regulates how the company will be managed, how shares may be transferred, and how shareholders can protect their rights after investment.It is especially important for foreign investors, minority shareholders, strategic investors, and joint venture partners because the company’s articles of incorporation..

Short AnswerBefore buying shares in a Korean company, foreign investors should review the transaction structure, target company records, share ownership, share transfer restrictions, foreign investment filing requirements, tax issues, and whether a shareholders’ agreement is needed.A Korean share acquisition is not only a payment issue. The investor should confirm who legally owns the shares, wh..

Short AnswerYes. A foreign investor may generally recover investment money from Korea through lawful methods such as dividends, share transfer, capital reduction, loan repayment, or company liquidation, depending on the investment structure and the company’s financial condition.However, a foreign investor cannot simply withdraw paid-in capital from a Korean company at any time. Once investment f..

Short AnswerThe main steps for foreign investment registration in Korea generally include foreign investment notification, remittance of investment funds, incorporation registration, business registration, and registration as a foreign-invested company.It is important to distinguish between two separate concepts:foreign investment notification, which is generally filed before the investment is m..

Short AnswerA liaison office in Korea is a limited, non-revenue presence typically used for preparatory or auxiliary activities, such as market research, communications, promotional support, and coordination with the foreign head office.Unlike a branch office or Korean subsidiary, a liaison office generally should not conduct direct sales, issue invoices, receive payments, or provide revenue-gen..

Short AnswerA foreign company can set up a branch office in Korea by preparing parent company documents, appointing a branch representative, completing required notarization or apostille procedures where applicable, and completing the relevant registration steps, including court registry registration and tax/business registration.A Korean branch is generally not a separate Korean legal entity. I..

Short AnswerBefore forming a joint venture or foreign-invested company in Korea, foreign investors should confirm three key issues: the proposed structure and governance, foreign investment and regulatory requirements, and the practical process for investment, registration, and business operation.In practice, establishing a Korean JV or foreign-invested company usually involves both corporate le..

Short AnswerChanging a representative director of a Korean company generally requires both internal corporate approvals and a corporate registration filing in Korea.In most cases, the key practical issues are not the appointment decision itself, but rather matters involving board and shareholder resolutions, resignation and acceptance documents, notarization and apostille procedures, Korean tran..