Ask Korea Law

Published by Chung & Partners Since 2008


Leave a comment

Do I Have to Make Any Filing Including Tax Report with the Korean Authority Regarding the U.S. House Gifted by My Korean Parent – Korean Tax Implication of International Gifts

When receiving gifts of money or other property, we should check any tax issues involved.  When the gifts cross the national borders or involve foreign parties, it becomes more complicated.  It could entail an additional filing with a government of the foreign country where the foreign party resides.  And even further, foreign tax liability could arise.  Today, we are going to introduce what report and tax liability the parties should take care of and under what condition, when a U.S. resident receives a U.S located house as a gift from his Korean resident parent.

Report to the Bank of Korea

According to Article 7-46 and 7-44 of Foreign Exchange Transaction Regulation(FETR), when a resident of Korea gifts a real property, which is even located abroad, to any non-resident, the resident(devisor) should report the transaction in advance to the Bank of Korea.

The nationality of the parties doesn’t matter here. What does matter is the place of residence of each party.  The Korean Tax authority (National Tax Service) has an internal rule to apply when Continue reading


Leave a comment

[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 the 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


Leave a comment

Chung & Partners Successfully Advised Korean Real Estate Developer on Project Financing For Acquisition and Development of Commercial Building in the amount of USD 140 Million

In September 2012, Chung & Partners successfully advised a Korean real estate development company(the “Company”) in connection with a project financing for the land acquisition, development and construction of commercial building to be built in downtown Seoul.  The financing package enabled our client to receive funds in the amount equivalent to USD 140,000,000.  Thanks to this transaction, the Company has successfully launched the project.

Our attorney Mr. Wonil Chung acted as counsel for the Company and provided legal advice on every aspect of the deal from structuring to documentation.


2 Comments

Current Issues in Korean Project Financing and Savings Banks

I found a very informative article for foreigners interested in Korean project financing market.  Korean project financing deal is largely dominated by real estate development financing deal.  The author addressed current situation and problem of Korean Savings banks regarding withering Korean project financing market.  I have seen many bank clients considering extension of their project financing or ABCP terms due to the withering project-financing market and Continue reading