Losing a family member is difficult enough. When that family member leaves behind assets in Korea — and you are unfamiliar with Korean law, whether you live abroad or are a foreigner residing in Korea — the situation quickly becomes legally complex.
Korean co-heirs may contact you promptly, urging you to sign documents, making representations about what the estate contains, or proposing how the inheritance should be divided. Without a clear understanding of your rights under Korean law, you are at a serious disadvantage.
Korean inheritance law, Part V of the Civil Act, is detailed and, for foreign heirs, often unfamiliar. Your share of the estate, your right to challenge a will, your ability to protect against an unfair distribution — all of these depend on rules that may be very different from those in your home country. And in many cross-border cases, it is not even obvious from the outset whether Korean law applies at all.
In this article, our Korean inheritance lawyer explains the core principles of Korean inheritance law as they apply to foreign heirs — from who qualifies as an heir and how the estate is divided, to the protections available to you and the steps you can take if your rights are being overlooked.
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Recently our office has represented US clients whose German father had passed away in South Korea without any will. At the time of passing, the deceased was domiciled in Korea and remarried to a Korean wife. The Korean wife contacted the US family out of blue to discuss how to distribute the estate in Korea. The US clients were the children from the deceased’s previous marriage in the US. They contacted our office for the legal advice and representation.
When 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.