It is well known that the Korean labor law provides the employees with generous protections when it comes to the matter of disciplinary measures taken by the employer.  In this article, we explain what protection is given to foreign employees in the area of termination and other disciplinary actions.

Employment Is Not “At-Will” in Korea

Unlike many other foreign legal regimes, Labor Standard Act of Korea (LSA) requires the employer having five or more employees to establish a just cause in order to exercise dismissal and any other disciplinary actions.  In other words, employment is not “at-will” in Korea.  (Note:  There is a legal concept of no-fault dismissal based on the managerial hardship under the LSA, which requires very strict requirements to execute.  This will be the subject of our upcoming article) 

Foreign Employees Can Be Protected By the Korean Labor Law Even If the Labor Contract  Says Korean Labor Doesn’t Apply

This rule of labor laws shall equally apply to the employment contract between Korean employers and Foreign employees in Korea, and vice versa.

More importantly, this is the case even when the employee working in Korea agrees in his employment contract that the Korean labor law does not apply.  That is because the Private International Act of Korea which provides the general principles for the choice of law enables every Korean and foreign employee working in Korea to enjoy the protections under the mandatory rules of the Korean labor law.

Therefore, it is highly advisable that any foreign employee working in Korea and a multinational which has employees in Korea must understand how the Korean labor law regulates the dismissal and under what situation the dismissal becomes a wrongful termination.

What is the Just Cause for Dismissal in Korea?

The LSA does not provide what the just cause exactly means.  It is up to the court’s review and interpretation.  In this regard, it is firmly established in the Supreme Court’s precedent that (more…)

Question) I am an American expat working in South Korea.  Originally I was working for a U.S. company incorporated in the state of New York, but 3 years ago I was seconded to the Korean branch of my U.S. company, and have been working for the branch until now.  When I was seconded, my new employment contract provided that the New York state law shall apply to my employment relation in Korea.  Now, my employment contract is expiring and I would like to know whether I am entitled to the severance pay under the Korean labor law.  I know my employment contract and my company’s policy do not provide the right to severance pay.  But, as I have been working in Korea for 3 years, I am wondering if the statutory rights of severance pay under the Korean labor law could be given to me.

Answer) The answer is Yes.  Expats are entitled to severance pay under the Korean labor laws.  (check here as to how the severance pay under Korean law is recognized and operates)

This answer could sound quite surprising considering the fact that the parties had previously agreed (i) the Korean labor should not apply and (ii) the severance pay should not be awarded.  How come the Korean labor law intervenes in the parties’ employment relation?  The answer lies in the provisions of the Private International Act of Korea which provides the general principles for the choice of law in Korea.

When a legal relation has certain foreign elements, the court must decide which jurisdiction’s law shall apply to interpret that legal relation.  In Korea, the Private International Act provides the general rules and principles for the governing laws of the various types of legal relations.  Specifically, the Act provides that if the employer and employee agree, the employment contract is governed by the law chosen by the parties.  But, this does not mean the parties can freely determine which law and regulations apply to their employment relation.  It is true in Korea that the party autonomy is a general principle of governing laws, but party autonomy is subject to limits imposed by the overriding public policy and mandatory rules.

Accordingly, (more…)

그림 2In April 2013, attorney Mr. Wonil Chung successfully obtained a Supreme Court’s ruling which overturned lower court’s decision in connection with the sponsored links, Internet keyword advertising services, operated by Overture Services Inc., a wholly-owned U.S. subsidiary of Yahoo! Inc.  Before this ruling from the Supreme Court of South Korea, there had been an increased controversy over whether Overture system user’s deployment of an automated program to access to the sponsored links could fall into a crime causing a harm to the Internet network system.  In this case, attorney Mr. Chung argued before the Supreme Court of South Korea that it cannot constitute a statutory crime, otherwise the result would be an over-reaching of Korean criminal statute and cause an excessive chilling effect on the free access to the Internet.  Responding to Mr. Chung’s arguments, the Supreme Court of South Korea held that it does not constitute a statutory crime of interference with stable operation of the Internet network.  With its ruling, the Court struck down the prosecutor’s attempt of excessive criminalization and reinforced online service user’s right of free and unrestricted access to the (more…)

There have been disputes as to whether Digital Rights Management(DRM) does violate competition law.  By using a DRM, the company can tie the playback of certain digital files to its own IT device.  The problem arises when the company has a dominant market position, because it entails an argument from competitors that the company has abused its dominant market position to distort a free competition at the market.

In November last year, the Supreme Court of Korea firstly issued a ruling addressing this issue.  The case dates back to 2006, when Fair Trade Commission(FTC) of South Korea ordered SK Telecom, the largest mobile carrier company and music download service provider, to lift up a DRM which had prevented the purchasers of MP3 mobile phone of SK Telecom from playing MP3 files downloaded from other online music store that SK Telecom does not operate.  SK Telecom had appealed the FTC’s decision to the court.

At the heart of this lawsuit lies the issue of whether SK Telecom’s use of DRM does constitute an abuse of its dominant market position under Korean Competition law.  In this regard, the Monopoly Regulation and Fair Trade Act(MRFTA) of Korea provides that any market dominant enterpriser shall not commit an act of either (i) unreasonably interfering with the business activities of other enterprisers or (ii) unreasonably doing considerable harm to the interests of consumers.  The FTC found SK Telecom’s using a DRM (more…)

Q) I wish to file a divorce from my wife.  Our relationship ended in practice earlier this year and she returned to Korea in August. We were married in Korea. I wonder how can I file for our divorce as she is in Korea but I am not living in Korea. I would prefer uncontested but would go with a contested divorce if necessary. But I am living in the UK. Can you tell me what process I should pursue?

A) At the outset, as your wife lives in Korea, you can file for divorce to a Korean Family Court.  Even if your wife does not have a Korean nationality, it is still the same. But you probably need to hire a Korean legal counsel who can represent you in the court, as you are not living in Korea and more importantly you might not be familiar with how the divorce works in Korea. With that said, if you hire a Korean divorce attorney, you are not required to come to Korea nor to attend the court.  Your Korean divorce attorney will handle everything for you.

The next issue will be which nation’s divorce law will govern your case, when you file for divorce in Korea.  If your wife is a Korean, then the Korean divorce law shall be the governing law.  If your wife is a UK citizen, then the divorce law of the UK shall apply.

When the Korean divorce law becomes the governing law, in order to get a divorce decree, you have to show some types of justifiable causes for divorce under Korean law such as domestic violence, unchastity, etc.  Not surprisingly, the Korean court quite often issues a divorce ruling when it founds the marriage was irretrievably broken.  Common grounds (more…)

There have been an increasing conflict between the free expression and the copyright protection in relation to the matter of a UCC, a user-created content, posted on the internet site.  For example, in the United States, there was a legal dispute concerning a 29-second YouTube video clip of a toddler dancing to Prince’s “Let’s Go Crazy”. In that case, the copyright holder to the Prince’s song alleged the YouTube video clip explicitly infringed the song’s copyright.

Almost the identical lawsuit had been filed in South Korea. In Korea, a father uploaded to his blog operated by Naver, the largest Internet portal site, a video capturing his 5 year-old daughter singing and dancing to a famous Korean female singer(Dambi Sohn)’s song, titled “Crazy” – what a coincident that two cases even had very similar song titles, “Let’s Go Crazw” and “Crazy”.  Just soon after the video clip was uploaded, it was taken down by the portal site operator upon a request from the copyright holder to the song alleging the video is a copyright infringement as it was used without permission. Then the father filed both a declaratory lawsuit claiming that uploading the video did not constitute a copyright infringement and a monetary compensation lawsuit for mental distress which he suffered from the unjust take down of the video he’d made.

On February 18, 2010, the Seoul Southern District Court sided with the father. The court ruled that uploading a video at issue did not constitute a copyright infringement because it fell within the scope of “the quotation from works made public” under Article 28 of the Copyright Act, which (more…)

Q) I have some questions about marriage and divorce law in Korea regarding two non-Koreans living in Korea.  Can they divorce and re-marry in Korea?

A) The Korean court hears an international divorce lawsuit basically if the defendant resides in Korea.  So long as the defendant resides in Korea, the duration of his residence does not matter. Even if the plaintiff does not reside in Korea, she can file a divorce lawsuit to a Korean court. If the defendant does not reside in Korea, the divorce lawsuit can be accepted only when the plaintiff fails to locate the defendant or the defendant answers the lawsuit filed under the Korean court.

Regarding the governing law, the divorce case shall be governed in the following order:

  1. the same law of nationality of both spouses
  2. the same law of the habitual residence of both spouses
  3. the law of the place where is most closely connected with both spouses.

If one party is a Korean national having a habitual residence in Korea, notwithstanding the foregoing, the law of South Korea will be the governing law.

The Korean court shall decide (more…)