Ask Korea Law

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[Q&A] Fake ID and Citizenship Revocation

Q) Recently, the Ministry of Justice(MOJ) had revoked my Korean citizenship.  I came from Pakistan, lived in Korea for 12 years without any problem and duly acquired my Korean citizenship 3 years ago.  The MOJ’s decision was made on the ground that my passport had been forged.  But that is not true.  It has a different name on it but it was a newly issued one which can be authorized by the local government.  Can I get my Korean citizenship back?

A) First of all, the MOJ’ decision to revoke your Korean citizenship is under the judicial review of Korean Administrative court.  There are cases where the court overturned the MOJ’s citizenship revocation on the ground that either (i) there is no legal ground for revocation and/or (ii) the decision causes too much personal harm rather than serving a public cause.

There are many fake/newly-issued foreign passport cases in Korea.  Some courts held that the revocation made against a person who had submitted a fake/newly-issued foreign passport while Continue reading


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[Q&A] Do I Really Have to Give up My Inheritance Share as Other Korean Heirs Claim?

Q) My mother passed away a few months ago. There was no will. She was a Korean citizen and her husband too. All two children live in US. As we understand I have inherited a 2/7 share of my mother’s condominium and some cash in Korea. My stepfather and his Korean lawyer seem to up to no good. They both have sent conflicting and in my opinion false information to me. Especially his lawyer is threatening me that I would not able to sell my share so I had no choice but to give up or transfer my share. The stepfather asked me to sign POA and a Renunciation of Inheritance but I refused. Can you give any advice?

A) As your deceased mother was a Korean, the Korean inheritance law shall be the governing law in Korea(Please click here for general overview of the Korean inheritance law).  Under Korean inheritance law, you and other heirs had already become the co-owners of the condominium and the bank assets of the deceased.  You have no reason to give up your share nor transfer the share to the stepfather as he advised.  The stepfather’s lawyer alleged that Continue reading


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Paternity, Child Custody, Visitation and Child Support under Korean Law

We have received many inquires regarding the child support obligation and custody/visitation rights under the Korean law.  Some cases are related to the divorcing parties and some to the unmarried couples who had babies during the relationship.

In case of unmarried couples, the birth father has no parental rights and obligations until his paternity is established in Korea.  That can be done in 2 ways.  One is to report himself as the father with the Korean local government and the other one is a filing a paternity suit.

When the parental relationship is established by either way, the parties need to agree on the matters of child custody, visitation and child support.  The same goes for the divorcing couple.  When it is hard to reach an agreement, Continue reading


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[Case Report] Attorney Wonil Chung Wins for Expat’s Korean Severance Entitlement – Foreign Employers Cannot Circumvent Severance Liability through a Contract Manipulation

There are so many foreign expats working in Korea.  As you know well, Korean labor law recognizes a severance liability of all employers in Korea regardless of the size of their business and also the nationality of the employee(check here as to how the the severance pay under Korean law is recognized and operates).  This also applies to the foreign employers such as Korean branches of foreign companies.  The problem is that some foreign employers are ignorant of their severance liability under the Korean law.  Even further, some foreign employers try to evade from their severance liability.  Sometimes they provide wrong information such as “foreigners are not entitled to the Korean severance” to their staffs, designate a foreign law as the governing law of their labor contracts, and have their staffs in Korea enter into the employment contract with their non-Korean entity such as a head office in the U.S. or a Singapore branch.  Those attempts, however, are all meaningless in a sense that regardless of those, they are still liable for the severance pay.  Actually, we have represented foreign employees for their Korean severance claim against the Korean branch and recently we won the case.

This case involved the expats working as ship inspectors in Ulsan Gorgon project.  We filed the severance suit on behalf of Continue reading


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Specific Grounds for Disciplinary Action or Termination under Korean Labor Law

It is first noted that the basic law in Korea regulating labor standards is the Labor Standards Act (“LSA”), ”), which is applicable to the employers with at least 5 employees.  As for the employers with less than 5 employees, only a part of LSA provisions would be applicable.  And, LSA provisions relating to our comments below are not applicable to these employers with less than 5 employees.  The only statutory restriction for a employer with less than 5 employees is the prohibition of dismissal during a particular period of time such as employee’s illness and childbirth.  That said,  please bear in mind that our comments below are only provided for employers and employees at a workplace with at least 5 employees.

Article 23 of LSA requires a “justifiable cause” if and when an employer takes disciplinary actions, including termination of employment, with regard to its employees.  Korean courts have held that a “justifiable cause” refers to such causes as criminal offence, serious illegal acts, and gross negligent acts, etc. which would make maintaining of the relevant employment relationships no longer possible under generally accepted public notions.

Especially, because a termination of employment is the most extreme measure, taking away an employee’s means of making a living, Korean courts are known to be very strict in applying the above-noted criteria, when it determines whether a particular termination is justified.  Thus, Continue reading


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[Q&A] Leaking Employer’s Confidential Information and Employment Termination : What Is Confidential Information under Korean Law?

“Hello, I am a U.S. citizen working for a Korean listed company.  Recently my company sent me a dismissal notice saying I had breached the employment contract by leaking their confidential information.  Informations at issue are a set of sale/purchase statements of the company.  I downloaded those informations from the company’s server to my personal email account.  But, there has been no warning mark of confidentiality.  My other colleagues have a free access too, and the information sometimes was provided to our suppliers.  Did I really breach the confidentiality of my Korean employer?”  

Leaking employer’s confidential information could result in a termination of the employment contract.  The legal issue, however, still remain whether or not the information can be regarded as a confidential information.

Most employers in Korea have their own rules of employment which state what is a confidential information.  And even an employment contract could list a set of confidential informations which the employee should not disclose to 3rd parties.  But, defining what is a confidential information is a matter of law and, therefore, the Korean court does not always follow the definition which an employer had been set in their internal documents.

The Korean court has well-established precedent that the confidential information should be Continue reading


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Classifying a Foreign Incorporated Corporation as a Domestic Corporation for Korean Tax Purposes: “Actual Business Management Place” Rule

그림 67When a foreign incorporated company does a business in Korea, it is very fundamental to determine whether the company is a domestic or a foreign corporation for Korean tax purposes.  A major difference in tax liability is that, in principle, a foreign corporation is liable for taxes only on the incomes generated in Korea rather than a worldwide income.

In this regard, the Corporate Tax Ac of Korea(“CTA”) defines a “domestic corporation” as a corporation with its headquarter, main office, or actual business management place located in Korea, and a “foreign corporation” as an organization which has its head office or principal place of business in a foreign country.  What makes distinguishing domestic corporation for a foreign corporation under CTA difficult and challenging is the meaning and application of the term of “actual business management place” set forth in CTA.  For example, in a case decided by the Supreme Court of South Korea in 2016, a Singapore incorporated company had challenged the Korean tax authority’s decision that its actual business management place was in Korea.

The Singapore company had a wide variety of international business portfolio and among them was a trading foreign issued corporate bonds including a Korean corporate bond.  The Korean tax authority decided that the company’s actual business management had taken place in Korea after finding the facts that the company had a liaison office in Korea, one of the directors was residing in Korea and financial documents relating to the Korean business was stored and managed in Korea.  And this Continue reading