Welcome

January 11th, 2009
Don Southerton, Editor and Chief Blogger

Don Southerton, Editor and Chief Blogger

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Our Goals

This resource shares recent developments in U.S.-Korean legal and business affairs, as well as topics such as family court, litigation, labor, and intellectual property issues.

We support the Blogger’s Code of Ethics as posted in www.cyberjournalist.net. We will abide by three main principles, “be honest and fair, minimize harm and be accountable.”

We strictly prohibit any postings that contain incorrect or misleading information.

Our Experts and Chief Blogger

Overseeing our team of experts and contributors is Bridging Culture Worldwide (BCW) CEO and President Don Southerton. Look for posting by top legal experts on Korea and international law related to Korean business.

Contribute your thoughts to this Blog…

Please note we promote open communications. In order to protect against spam and abusive remarks, all comments will be reviewed before being posted. That said, we look forward to your thoughts, contributions, and participation.

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Korea to Sign Hague Convention on Parental Child Abduction

March 8th, 2010

By Don Southerton, Editor KoreaLegal.org
Last year I was involved in a child custody case as an expert witness. One of the divorced parents wanted to return to Korea with her 2 children. The dad opposed such a move on a number of grounds. One key point was that Korea was not party to the Hague Convention on Child Abduction. That will change.

Chosun Ilbo notes:
Korea is to join the Hague Convention on the Civil Aspects of International Child Abduction in an effort to prevent a divorced parent in an international marriage from taking children to his or her native country.

The Hague Convention stipulates that if parents in international marriage get divorced, children have the right to stay in the country where they have lived. Once Korea joins, if either parent takes children to his or her native country after the divorce, the other will be able to take them back to Korea in case the country of the former spouse is also a signatory.

As international marriages increase in Korea, many disputes have arisen over who should raise children after divorce.

A government officials cited the case of a Korean woman who divorced her American husband in the U.S. and took the child to Korea, and her ex-husband presented it as an abduction.

“Conversely, if an American spouse who has lived in Korea takes his or her child to the U.S. without the former spouse’s consent after divorce, there is currently no international legal basis for the Korean spouse to bring the child back to Korea,” the official added.

Some 81 countries have signed up to the Hague Convention. The government has been pushing for a revision of relevant domestic law after completing a review last year.

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Louis Vuitton, Hyundai Motor Trademark Infringement

March 5th, 2010

By Don Southerton, Editor Korealegal.org

Recently the luxury fashion firm Louis Vuitton filed a trademark infringement suit against Hyundai Motor (see below). As the news broke it caught my attention on several levels. For one this Blog looks at U.S. Korea legal issues. IP is a common theme. Moreover, Lux and the Korean car market are common themes of our sister website–Bridging Culture Worldwide Blog.

Trademark infringement can be a sensitive issue. I understand Vuitton has a brand and image to uphold. That said, they might be getting this one wrong—Hyundai had been driving toward Luxury. The Genesis model has won a number accolades.  In fact, the Lux brand Prada and Hyundai did strong co-branding last year in Korea—with a Genesis Prada model. More significant, Hyundai will soon launch in the U.S. market its luxury model the Equus.

Hyundai is sued over Super Bowl ‘Luxury’ ad
LVMH Moet Hennessy Louis Vuitton SA , the world’s largest luxury-goods manufacturer, sued Hyundai Motor Co. accusing the  car company of trademark infringement in a Super Bowl ad. The complaint was filed in Manhattan federal court. LVMH, based in Paris, is seeking unspecified damages and an order barring Seoul-based Hyundai, South Korea’s largest automaker, from diluting its trademark.

The suit is over a commercial Hyundai broadcast on Feb. 7 to a record 106 million people watching the football game. In a commercial entitled “Luxury” Hyundai featured a group of men playing basketball with a dark brown ball covered in a pattern of initials that resembled Louis Vuitton’s trademark, according to the complaint. Hyundai’s conduct is likely to both dilute the distinctiveness and tarnish the reputation of the LVM marks, according to the trademark dilution complaint.
Detroit News

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Korea’s Maternity Protection Laws

February 28th, 2010

By Don Southerton, KoreaLegal.org Editor

A client asked about workplace maternity leave coverage in Korea. In the US coverage can vary state to state. Some like California, include provisions for the spouse to take time off for bonding, too. Similar laws exist in Europe.

In South Korea, thee Ministry of Gender Equality was established in 2005 as an administrative agency maintaining and overseeing the social safety network under which married  and unmarried women can work without feeling discrimination.

With regard to having children, Maternity Protection Laws took effect in 2001. Women employees must be given 90 days paid maternity leave and an additional 45 days of unpaid leave; employers pay for 60 of the 90 days and the government the remaining thirty. However, this law applies just to firms covered by state employment insurance, which can leave out some. Currently there is discussion that State employment insurance protections should be extended to cover those that fall outside government coverage. Other feel the laws in general need to be strengthened, with declining birth rates a concern.

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Toyota Korea Sees First Lawsuit

February 25th, 2010

By Don Southerton, Korea Legal.org Editor

AP notes….WASHINGTON – Even as Toyota CEO Akio Toyoda wrapped up a grueling appearance before Congress, the head of the world’s largest automaker wasn’t leaving his problems behind.

Toyota faces a criminal investigation by federal prosecutors in New York. The Securities and Exchange Commission is investigating the company. Its beleaguered U.S. dealerships are facing repairs to potentially millions of customer vehicles that have been recalled. The company is offering customers new reimbursements for rental carsand other expenses.

Its lawyers are bracing for waves of death and injury lawsuits. The Senate will conduct a new hearing next week. And the cost to Toyota’s reputation is only now starting to emerge.

Toyota is taking a beating in the media and in Washington, DC before a congressional hearing. Korea, too, feels the pressure against Toyota, as a respected benchmark for Asian auto success, a desired high quality import, and a rival for Hyundai and  Kia Motors ( globally and even in Korea).  That so, some in Korea feel Toyota is a ripe target for lawsuit.

Chosun Ilbo notes

According to the Seoul Central District Court on Wednesday, a 54-year-old woman identified only as Kim has filed suit against Toyota Motor, Toyota Korea, and Toyota’s Korean dealer Hyosung for damages of W138.9 million (US$1=W1,144), including the car price and compensation. She bought a 2010 Prius Hybrid in September last year.

Kim complains of a serious problem in the car’s braking system, which made her afraid to drive. She alleges that Toyota and others have continued selling cars in the country since 2009 after deliberately covering up serious defects, delaying the improvement of the braking system until this February. Kim suffered no accident.

Her attorneys said it is likely that more buyers of the Prius will sue Toyota due to the latest recall in the U.S.

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More Korean Legal Resources

February 20th, 2010

Hello,  all.  I’m Andrew Barbour, and I’m a Connecticut-licensed attorney working for one of Korea’s larger general trading firms here in  Seoul.  Don was good enough to  entrust me with an admin account, but I’ve been mostly dormant except for a few comments on previous posts.  However, the last post on Korean Legal Resources reminded me that I have a decent collection of Korean law and government links that might be worth sharing.  So here are a few to begin with. This is by no means a comprehensive list–if you have suggestions, please mention links in the comments, and we’ll update this list as soon as possible.

NB: Many (if not most) Korean websites have reduced functionality in browsers other than Internet Explorer, so if the page isn’t cooperating, give IE a shot.

Law Firms:

Shin & Kim http://www.shinkim.com

Yoon Yang Kim Shin & Yu http://www.yoonpartners.co.kr/

First Law Lee & Ko http://www.firstlaw.co.kr/

Sojong Partners http://www.sojong.com/

Wonjon Intellectual Property Law Firm http://www.wonjon.com/

Barun Law http://www.barunlaw.com/

Hwang Mok Park http://www.hmpj.com/

Kim Chang Lee http://www.kimchanglee.co.kr/

Ahnse Law Offices http://www.ahnse.com/

Kim & Chang http://www.kimchang.com/

Bae Kim & Lee http://www.baekimlee.com/

Law Firm Pureun http://www.pureunlaw.com/

Yulchon http://www.yulchon.com/

Saegil Law Firm http://www.saegillaw.co.kr/

LOGOS law http://www.lawlogos.com/

Government Agencies:

MOLEG (Ministry of Government Legislation) http://www.moleg.go.kr

KIPO (Korean Intellectual Property Office) http://www.kipo.go.kr/

KOTRA (Korea Trade-Investment Promotion Agency) http://www.kotra.or.kr/

National Assembly of the Republic of Korea http://korea.assembly.go.kr/index.jsp

National Assembly Library http://www.nanet.go.kr/english/

NHIC (National Health Insurance Corporation) http://www.nhic.or.kr/

Foreign Investment:

Invest Korea http://www.investkorea.org/

Invest Korea Journal http://www.ikjournal.com/

FEZ (Free Economic Zones Korea) http://www.fez.go.kr/

Gyeonggi Province Office of Investment http://www.invest.go.kr

BJFEZ (Busan-Jinhae Free Economic Zone Authority) http://eng.bjfez.net/

Busan Ports Authority http://www.pba.or.kr/

Miscellaneous:

Seoul Bar Association http://www.seoulbar.or.kr/

Korean Bar Association http://www.koreanbar.or.kr/

법률신문 (Law Times) Korean-only http://www.lawtimes.co.kr/

Journal of Korean Law (Seoul National University Law Research Institute) http://www.snujkl.org/

KIPRIS (Korean Intellectual Property Rights Information Service) http://eng.kipris.or.kr/

KFIA (Korean Financial Investment Association; formerly “Korean Securities Dealers Association”) http://www.ksda.or.kr/english/eng_index.cfm

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University of Washington Korean Legal Research

February 17th, 2010

By Don Southerton, Korea Legal.org Editor
One goal of Korea Legal.org is to share resources. This UW site  is a great source of information. UW has long been a center for Korean studies in the West.

한국법학연구지침
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Book Review–Korea Business Law: The Legal Landscape and Beyond

February 12th, 2010

By Don Southerton, Korea Legal.org Editor

A Korean lawyer acquaintance mentioned he was reading this book. It prompted me to investigate. Seems like a book worth reading if you are involved in Korea business and legal issues.
Here’s a link for a preview. Click Here.

Korean Business Law: The Legal Landscape and Beyond
Jasper Kim; Carolina Academic Press; 358 pp., $40

This book written by Jasper Kim, a professor of Ewha Graduate School of International Studies is the first of its kind in English that explains Korean business laws for business leaders, bankers, students and academics as well as lawyers.

The book consists of 18 chapters, each written by experts in their fields ― law firm partners, scholars and members of the judiciary ― to essentially help globalize Korea’s legal commercial infrastructure. Each chapter is based on the relevant experts’ empirical background that provide essential information on business law through the author’s thoughtful insights.

Targeting a diverse global audience both inside and outside Korea, the book presents clear and concise explanations of what the law means relating to South Korea’s often complex and changing business environment.

Major issues include corporations, mergers and acquisitions, securities offerings, the Korean judicial system, intellectual property rights, project financing, private equity funds, competition law, broadcasting/telecommunications, renewable energy law, corporate governance, legal risk management, labor law, real estate, trade law and torts.

-Chung Ah-young,  Korea Times

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Hyundai Motor Chairman Fined for Damages

February 8th, 2010

By Don Southerton, Korea Legal.org Editor

Korea’s industrial groups and their family management are under constant public scrutiny. For decades they have attracted both praise and attack. Hyundai and Samsung tend to get most of the attention ( note my previous few posts). This surfaced today. In defense of  the actions of Chairman Chung Mong Koo, considerable restructuring efforts were required across Korea following the 1997 IMF Crisis. Much of this was for survival.

Korea media notes:

Chung Mong-koo, chairman of Hyundai-Kia Automotive Group, and Kim Dong-jin, vice chairman of Hyundai Mobis, the carmaker’s parts manufacturer, were ordered to pay 70 billion won ($60 million) in damages and penalties to the automaker for “managerial misconduct.”


The ruling follows Chung’s conviction for breach of trust in June 2008 when he was given a three-year suspended jail term. The 71-year-old tycoon was later pardoned by President Lee Myung-bak.

The Seoul Central District Court ruled in favor of the Solidarity for Economic Reform (SER) and 14 minority shareholders, Monday, who filed a lawsuit against Chung and Kim for losses they inflicted on the company when they diverted funds from affiliates to beef up the eroded capital base of the now-defunct Hyundai Space and Aircraft after the 1997 currency crisis.

The amount is the biggest ever to have been awarded by a court in a damages suit initiated by minority shareholders against the CEO of a conglomerate.

“The court rejects claims by Chung and Kim that it was an inevitable managerial decision that overall inflicted no losses on the company,” presiding senior Judge Shin Hyun-chul said. “The court also does not accept their claim that the lawsuit was filed after a statute of limitations had expired.”

Shin concluded that Chung had ordered a capital increase for Hyundai Aerospace in order to defend his managerial control and tried to have his company cover his personal debt guarantees ― all actions that supported the plaintiffs’ argument.

A Hyundai representative said that Chung has not yet decided whether to appeal or pay the damages as ordered.

“Our legal team is checking the pros and cons before making a final decision,” he said, complaining that the amount was “too much.”

The plaintiffs lodged the lawsuit after Hyundai Motor rejected their request to its board of directors to take action against the chairman. SER cited the conviction of Chung for embezzling 70 billion won in corporate funds on top of a 45 billion won fine levied by the Fair Trade Commission for illegally subsidizing Hyundai Aerospace through affiliate Glovis, now Mobis. [ not sure this is correct, I believe it was Hyundai Precision, not Glovis--which was created in 2001.]

Under current regulation, this request must precede any legal action by minority shareholders to seek damages for losses a company sustains.

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US International Trade Commission To Investigate Samsung

February 6th, 2010

By Don Southerton, Korea Legal Editor

IP issues interest me. For one, as Korea moves from a heavy industy, labor intensive export production model to more gray matter sectors like bio tech, Green and renewable, and high tech I see more and more IP issues surfacing. On another level, vicious competition within the high tech sectors coupled with internal corporate pressure to perform add to the situation.

Seems like Samsung at the center of many controversies. It’s shear and scale had lots to do with this…

DOW JONES NEWSWIRES Feb. 4, 2010

The U.S. International Trade Commission said it has voted to embark on an investigation into allegations that Samsung Electronics Co. (005930.SE) has violated Sharp Corp.’s (6753.TO) patents used to make components in flat-screen televisions.

The latest complaint comes after the Korean electronics giant in December filed a complaint with the U.S. commission against Sharp alleging that the Japanese firm infringed on Samsung’s patents for liquid crystal display devices. It joins a growing list of disputes about patent breaches in the highly competitive electronics industry as companies strive to protect their intellectual property and cutting-edge technologies.

Patent-related legal disputes happen often in the flat-panel display industry, although in most cases they end up in cross-licensing deals.

Officials at both Samsung and Sharp said they had no immediate comment on the issue.

In a statement on its Web site, the ITC said the products involved the probe are LCD modules for products used in televisions.

The ITC is beginning the investigation after Sharp filed a complaint against Samsung on Jan. 8. In the complaint, Sharp asked that the ITC issue a cease-and-desist order on the export and sale of such products.

“By instituting this investigation, the U.S. ITC has not yet made any decision on the merits of the case,” the commission said in the statement.

The ITC’s chief administrative law judge will assign the case to one of the ITC’s six administrative law judges, who will schedule and hold a hearing.

The administrative law judge will then make an initial determination as to whether there is a violation, it said.

Samsung in November lost a patent infringement case raised by Sharp in 2008 that involved LCDs. In that case, the U.S. ITC ruled that Samsung infringed on four of Sharp’s patents for technology to improve the picture quality of LCDs and said the South Korean company should stop selling devices in the U.S. that trespassed on the patents.

Link http://online.wsj.com/article/BT-CO-20100204-722715.html?mod=WSJ_World_MIDDLEHeadlinesAsia

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Korean Justice and Samsung Leadership Saga

January 30th, 2010

This Economist issue looks at the Samsung’s leadership saga. For decades there has been a love-hate relationship between the government and the family leadership of Korea’s top business groups. Many have been investigated, charged, convicted, and then pardoned–several times.

All in the family Lee Kun-hee may return
Jan 28th 2010 | SEOUL | The Economist

JUSTICE in South Korea can be elastic. Industrialists who break the law have had their sentences commuted or been pardoned on the basis of their contributions to the national economy, sweeping them back to their corner offices. Lee Kun-hee, the patriarch of Samsung, appears to be on the same trajectory.

In early January Mr Lee appeared at a big American electronics show, a rare act for a notoriously private person. Upon his return to South Korea Mr Lee said he was “thinking about” returning to a formal role at Samsung, whose sales account for about a fifth of the country’s gross domestic product and which the Lee family controls through a convoluted web of shareholdings.

Mr Lee, who is 68, had resigned as Samsung’s chairman in April 2008 after being charged with breach of trust, tax evasion and securities violations. Convicted of the first two, he was ordered to pay 46 billion won ($40m) in taxes and 110 billion won in fines. A three-year prison sentence was suspended.

On December 31st South Korea’s president, Lee Myung-bak, pardoned Mr Lee, wiping his record clean. The president said the country needed his help to win its bid to host the 2018 Winter Olympics. Shareholder activist groups squawked over the pardon and were duly ignored.

Mr Lee’s possible re-ascension to the chairmanship throws a spotlight on Samsung’s corporate governance. Yet the leadership saga seems not to have hurt its performance. Last October Samsung Electronics posted record quarterly operating profits of 4.2 trillion won—better than any of Japan’s big electronics makers. It expects to report record sales for 2009 of 136 trillion won when it releases its earnings on January 29th. It is now the world’s largest maker of computer memory-chips and the second-biggest mobile-phone company after Nokia.

Last year a South Korean court declared that a sale of Samsung securities by Mr Lee to his children at below market prices was legal, clearing the way for the next generation to take control. In December his only son, Lee Jae-yong, was named chief operating officer of Samsung Electronics. He is regarded as the heir apparent. On February 12th Samsung will celebrate the birthday of its founder, Lee Byoung-chull. The family, after all, must be honoured.

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