Jin & Kim, PLC | Legal Blog

Short AnswerGenerally, yes.For a Korean corporation or Korean subsidiary, Korean law does not generally require a Korean citizen or Korean resident to serve as a director or representative director solely because the company operates in Korea.Accordingly, foreign-invested companies commonly appoint foreign nationals as directors or representative directors of Korean subsidiaries in Korea without..

Short AnswerNot always. A foreign company may carry out limited activities in Korea without forming a Korean entity.However, once the activities go beyond preparatory or auxiliary functions and start to constitute a business presence in Korea, the company may face Korean corporate registration and tax issues (e.g., permanent establishment (PE) exposure and VAT considerations).Can a Foreign Compa..

Short AnswerA foreigner can set up a company in Korea by establishing a Korean subsidiary, typically in the form of a stock company (주식회사) or a limited liability company (유한회사).The process generally involves foreign investment reporting, capital remittance, incorporation procedures, post-investment registration, and business registration.Can Foreigners Start a Business in Korea?Yes. Foreign indi..

Short AnswerA liaison office (also known as a representative office) in Korea is a local office established by a foreign company for non-commercial activities.It is intended for preparatory or auxiliary functions and is generally not used for revenue-generating business activities in Korea.What Is a Liaison Office?A liaison office is a form of presence that allows a foreign company to operate in..

Short AnswerForeign companies should cooperate appropriately with Korean authorities, but they should first determine which authority is conducting the investigation and what legal procedure is being used.Each authority has different legal powers, investigative procedures, and potential consequences. The appropriate response depends on the type of investigation—not simply on the fact that govern..

Short AnswerYes, but cross-border transfers of personal data are regulated under Korean law.Under the Korean Personal Information Protection Act (PIPA), personal data collected in Korea cannot simply be transferred overseas without a proper legal basis.In practice, foreign companies should check whether the transfer falls under one of the recognized legal grounds, such as separate consent, a sta..

Short AnswerCompanies should stay calm, cooperate appropriately, and quickly identify the legal basis for the raid.In Korea, a “dawn raid” may refer to different types of government action.It may involve:A criminal search and seizure by prosecutors or policeAn on-site investigation by a regulatory authorityAn inspection by an agency such as the Korea Fair Trade Commission (KFTC), Personal Inform..

Short AnswerForeign companies doing business in Korea should understand that Korean competition law may apply even if the company is incorporated overseas.Under the Korean Monopoly Regulation and Fair Trade Act (MRFTA), conduct outside Korea may still be regulated if it affects the Korean market.For foreign companies, competition law issues commonly arise in ordinary commercial activities, inclu..