Archive for the ‘News’ Category

South Korean Supplier Tied to Apple Kickback Scandal

Saturday, August 21st, 2010

By Don Southerton, Korea Legal Editor

The Apple supplier scandal now has a Korean connection. Apple Insider and numerous media sources report a Korean supplier has revealed it was involved in the Apple kickback scheme. It will be interesting to see how things unfold. I’m wondering if the Asian suppliers will be subject to civil lawsuits by Apple, along with accused ex-Apple supply manager, Paul Shin Devine.

A South Korean earphone and headset maker this week admitted it entered into what it believes was a legal consulting contract with an Apple supply manager.

South Korea’s Cresyn said on Tuesday that it first met Paul Devine, an Apple global supply manager, in early 2006. The company was in negotiations to supply Apple, and Devine offered consulting services according to Reuters.

An unnamed official said the company made a “legal contract” with the supply manager in 2007, through which it paid him a “small consulting fee” in exchange for “general information about U.S. markets.” Cresyn supplies the ear buds that ship with Apple’s line of iPods.

In addition, JLJ Holdings, owner of Jin Li Mould Manufacturing, said it was looking into the accusations of kickbacks made by Apple. The company said that a former Jin Li employee was named in the indictment, along with Devine.

On Monday, Pegatron, the parent company of Kaedar Electronics, admitted it did pay a brokerage fee to an intermediate trading company between 2005 and 2008. The incident occurred before Pegatron acquired Kaedar, which has supplied iPod packing boxes to Apple since 2005. A company spokesperson said that no money was ever paid to an individual.

Three more companies have been named in the case but have not commented: Glocom/Lateral Solutions and Fatestning Technologies of Singapore, and Nishoku Technology in Taiwan.

Devine appeared in a San Jose, Calif., court on Monday and pleaded not guilty to accusations that he shared confidential information with Apple’s suppliers to give them an advantage in negotiations. He was arrested Friday and charged with 23 counts, including wire fraud, kickbacks and money laundering.

Devine also faces a civil suit from Apple, alleging that he accepted more than a million dollars in kickbacks from Asian suppliers.

Source: Apple Insider

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Google’s Korea Office Raided

Saturday, August 14th, 2010

By Don Southerton, Korea Legal.org Editor

Culminating in a recent raid on Google’s South Korean office, issues continue to surface regarding data mining, data collection (intentional and unintentional), and privacy. We’ll have to see how things unfold.  BTW I like the service under scrutiny–  Google’s Street View, which gives viewers street level view of a map location.

SEOUL—Police raided Google Inc.’s South Korean offices Tuesday to probe potential violations of the country’s telecommunication-privacy law, in the latest move by authorities around the world to ratchet up scrutiny of the Internet search giant’s privacy practices.

The National Police Agency said it is investigating whether the U.S. company collected and stored private information illegally while it prepared for the South Korean launch of its Street View mapping service, which provides panoramic views of streets for Internet search users.

The agency said Google collected information on unspecified users from Wi-Fi wireless network for about six months until May while sweeping through the streets in special vehicles used to assemble street photos for the service.

“We began the probe after having confirmed that the company seized and kept open data as well as unauthorized private communication data collected by its special data-collecting vehicles,” the police said in a statement. Open data refers to data such as businesses’ street addresses that can be kept and stored legally under Korean law.

“We can confirm that the police have visited Google Korea in conjunction with their investigation around data collection by Street View cars. We will cooperate with the investigation and answer any questions they have,” said Lois Kim, a Google spokeswoman.
The raid doesn’t necessarily mean the Internet search giant will face charges. Such raids are common in South Korea as part of initial investigations that often fail to go much further.

Still, the raid will likely keep a spotlight on Street View. A number of U.S. states have joined in on an investigation of whether privacy laws were broken when Google’s Street View vehicles collected personal data of unsuspecting Internet users. Authorities in the Italy, Spain, Germany and Australia are investigating the service.

Also Tuesday, Google said it plans to introduce its Street View feature for 20 of Germany’s largest cities, including Berlin, Munich and Frankfurt, before the end of the year.

At the insistence of authorities, the faces of individuals and licenses plates will be blurred. People can also ask to have images of their homes removed from the database starting next week, a move aimed at dispelling privacy fears, the Associated Press reported.

“This tool available before the launch of the service is unique to Germany,” Google spokeswoman Lena Wagner said Tuesday, according to the AP.

Google said in May that the roving vehicles it uses to create its Street View program had for years inadvertently collected data over public, unsecured Wi-Fi networks. Google has said the collection was a “mistake” but that the company “did nothing illegal.”

Google has a weak presence in the South Korean market, where local search portal sites such as NHN’s Naver, Daum Communications and others enjoy a comfortable dominance near 90% of the market.

Privacy concerns have been also emerged around Daum’s Road View, which is similar to the Street View and started January 2009. The company has taken several steps to protect privacy such as blurring people’s faces on photos.

Read more: http://online.wsj.com/article/SB10001424052748704164904575421033257417518.html#ixzz0wWd0pXDR

Source: The Wall Street Journal

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South Korea-based NCsoft’s Suffer $28 Million Texas Verdict Setback

Saturday, July 31st, 2010

This is a fascinating court case.
AUSTIN, Texas, July 30 /PRNewswire/ — Attorneys from Fish & Richardson P.C. today announced a $28 million breach of contract verdict delivered in favor of computer gaming pioneer Richard Garriott against South Korea-based NCsoft Corp.

Jurors in the case found that NCsoft breached its stock option agreement with Mr. Garriott by falsely stating that he left the company voluntarily in order to force him to exercise his stock options during a down market.

Mr. Garriott is a legend in the video game industry, and was among the first to develop and market role-playing video games. In 2001, NCsoft acquired Mr. Garriott’s company, Destination Games.

In 2008, Mr. Garriott took a pre-approved temporary leave of absence from NCsoft to pursue his lifelong dream of space flight. The son of a NASA astronaut who spent time aboard the Skylab space station and Space Shuttle, Mr. Garriott traveled aboard a Russian Soyuz spacecraft to the International Space Station.

During his post-flight quarantine, Mr. Garriott was informed by NCsoft that his time with the company was over.

As part of NCsoft’s purchase of Destination Games, Mr. Garriott was issued stock options valid through May 30, 2011. These options were to remain in place in the event of his termination by the company, but would expire within 90 days in the case of his voluntary departure.

When Mr. Garriott was let go during NCsoft’s reorganization of its North American operations, the company claimed his termination was a voluntary resignation, his attorneys argued during the trial.

Because NCsoft mischaracterized his termination as voluntary, Mr. Garriott was forced to sell his stock options 2 1/2 years early, costing him millions of dollars. Jurors found NCsoft liable for breaching the stock option agreement with Mr. Garriott, and awarded him $28 million in damages.

“In Texas, a deal is a deal, no matter how a company might try to spin the events after the fact,” says Fish & Richardson principal Stephen E. Fox, lead counsel for Mr. Garriott. “We’re pleased that the jury listened to the facts in this case, and decided it is ‘game over’ for NCsoft’s attempt to deny Richard what he is rightfully owed.”

The July 29, 2010, verdict in Richard Garriott v. NCsoft Corp., No. A09 CA 357 SS, was handed down following a three-and-a-half-day trial and three hours of deliberations by a jury appearing before the Hon. Sam Sparks of the U.S. District Court for the Western District of Texas in Austin.

PR Newswire Source LiNK

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Korean Lawsuit Over Murder of Queen Min

Sunday, July 25th, 2010

This article caught my attention.  I wear many hats–consultant, author, coach, expert witness, strategist– but at the core I’m a cultural historian focused on Korea.  This new lawsuit centers on the death of Empress Myeongseong, also known as Queen Min. As Korea was beginning to open to the West, she was brutally murdered by a group of Japanese assassins on Oct. 8, 1895. (More details here).

(AP) — SEOUL, July 16 (Kyodo)-A South Korean civic group said Friday it plans to file a lawsuit against the Japanese government over the 1895 murder of Queen Min, the wife of the King Gojong of the Joseon Dynasty (1392-1910), by Japanese assassins, according to Yonhap News Agency.

At a protest rally in front of the Japanese Embassy, the group issued a statement saying it will demand, through the lawsuit, that the Japanese government reveal the truth about the murder case, and the Japanese emperor make an apology.

“Japan has not made an official apology or repented on the barbarian act of murdering Empress Myeongseong, which happened 115 years ago,” according to the statement from the group of South Korean victims from the Pacific war.

“Japan has not made an official apology or repentance 100 years after it obliterated the Korean people for 35 years through the 1910 Korea-Japan Annexation Treaty,” the statement said.

The lawsuit will be filed if the Japanese government does not accept their demands that the Japanese government issue a special statement on Aug. 15, offering the emperor’s apology and mentioning whether it will release related documents on the murder case.

A group of people to handle the lawsuit will leave for Japan on Aug. 5 and hold rallies to demand the Japanese government accept their demands.

Academics in South Korea and abroad have raised the possibility that the murder of the Korean empress could be a state crime on grounds Japanese diplomats played a major role in the case, Yonhap said.


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New Korean Journal Focuses on Business and Foreign Investment Law

Sunday, July 18th, 2010

Thought this was timely since we posted several articles on Korean FDI.

Korea media notes that the Ministry of Justice  has published an English-language journal on major foreign investment-related articles, court rulings, immigration rules and other information foreign investors need to know.

The ministry will initially publish 500 copies and distribute them to embassies, law schools and justice ministries in countries with an interest in Korea. It plans to publish more if deemed necessary.

The magazine, titled “Recent Trends of Law and Regulation in Korea: Focusing on Business and Investment,” will be published on a quarterly basis, it said.

This is a response to chronic complaints from foreign investors who have struggled with a lack of credible sources of information about Korea’s legal system, the ministry explained.

“We expect the book will help deepen investors’ knowledge and understanding about Korean law,” said Lee Ki-young, a ministry official. “This will also serve as the most credible source for overseas researchers and experts.”

Lee said the ministry will gradually extend the scope of issues covered by the magazine and also shorten the period of time for updates to make it possible for foreign investors to get access to up-to-date information as quickly as possible.

The government has paid greater attention to providing legal information in foreign languages, particularly English, with the strong belief that this will help boost the country’s international competitiveness.

Along with the justice ministry, the Ministry of Government Legislation (MOLEG) is also translating Korean laws and regulations into English.

MOLEG has run a website (oneclick.law.go.kr) providing basic legal information on six major subjects in English to support English-speaking foreigners here ― foreign investment, foreign workers’ employment, foreign students, interracial marriage, overseas Koreans and transportation/driving.

Source: Korea Times

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Korean Companies Desire Foreign Law Firms Services

Wednesday, June 30th, 2010

By Don Southerton, KoreaLegal.org Editor
When Korea opens its legal services market to foreign firms some Korean companies might turn to foreign law firms—especially in specialized areas.  This comes as no surprise to those who follow the dynamics of the Korean legal system. Many feel opening the market will encourage competitiveness, reduce fees to clients, and improve service.

The article notes…
Major domestic companies has given Korean law firms 79 out of 100 points for competitiveness, and 83 percent of the companies say they could turn to foreign law firms should Korea’s legal market be opened.

The Dong-A Ilbo polled 50 large domestic corporations, state-run companies and financial institutions and 18 major law firms on the competitiveness of Korean law firms in response to the opening of the Korean legal market.

On whether they would turn to foreign law firms after the market’s opening, 71.4 percent or 35 of the legal departments of the 50 companies said they would do so for “certain sectors.” Just five companies (16.3 percent) said no.

On which sector will be the most affected by the opening, 13 law firms said the financial sector and six firms said the corporate sector, including mergers and acquisitions and fair trading. This indicates that foreign law firms will gain ground in the domestic market for legal services in finance and business, where they have a competitive edge.

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South Korea Ponders Move Towards U.S.-style Grand Jury System

Sunday, June 20th, 2010

By Don Southerton, Editor KoreaLegal.org

South Korea’s legal system has evolved over the past decades. Once rooted in Neo Confucian tradition, as Korea opened to the West they adopted much from Europe.  This WSJ article notes a mandate  to change, which includes, for example, a move towards the American-style grand jury system.

SEOUL—South Korea’s top prosecutor announced his support for the introduction of grand juries in the country, in what would be a major change to a legal system where power is concentrated with prosecutors.

The move is the most significant of the proposals announced Friday by Prosecutor General Kim Joon-gyu in response to a bribery and sex scandal involving about 100 current and former prosecutors in Busan, a city on South Korea’s southeast coast.

Mr. Kim proposed legislative changes to enact a U.S.-style grand jury system, a process that could take months, and said he would create citizens’ review panels for major cases in the meantime.

The decision could bring an advance in civil rights for South Korean individuals and a reduction in sometimes-abusive investigations of foreign businesses that have effectively been a trade barrier, analysts say.

For companies, South Korean prosecutors’ power has meant that simply being the target of an investigation can taint a reputation and damage business, even if no charges are brought. In the most high-profile such case in recent years, an attempt by the U.S. owner of Korea Exchange Bank to sell the institution was twice thwarted by a prolonged investigation into whether the company should have been allowed to buy the bank in the first place.

“It’s a paradigm shift,” says Jasper Kim, who teaches law in the international studies program at Ewha Women’s University in Seoul. “The question is in the execution, whether the grand juries function as simply a rubber stamp for prosecutors or as a bellwether test to a case.”

Prosecutors hold enormous power in South Korea’s justice system. Prosecutors, rather than police, preside over civil and criminal investigations. They decide whether to charge people with crimes, and don’t have to first prove the merit of the charges before a grand jury.

Prosecutors routinely disclose investigations to the media before charges are filed or trials are held, a practice that makes trials and court rulings less important for the public than an investigation.

The Busan scandal brought to a boil South Koreans’ long-simmering anger with prosecutors’ relatively unchecked power. In April, an investigation by South Korean TV network MBC turned up a construction-company executive who claimed to have systematically paid dozens of prosecutors for more than 20 years with cash, gifts, meals and prostitutes.

On June 9, the chairman of a special committee appointed to investigate the news report said some of the allegations were true. He recommended dismissal for a handful of prosecutors and financial penalties for others, though he didn’t recommend criminal charges because he found it difficult to link the payments to favors or other misconduct.

In a videoconference with 1,700 prosecutors nationwide on Friday, the prosecutor general, Mr. Kim, said the country needs a U.S.-style grand jury system for prosecutors to regain credibility. “The behavior of the prosecution will be revamped and those who do not follow the new trend will not keep their job,” Mr. Kim told the prosecutors.

South Korea’s legal system is rooted in communal practices that stretch back centuries, but it was modified 62 years ago with a civil-law-style system similar to France’s. The system instilled South Korean prosecutors with power and remained unchanged after the nation adopted a democratic constitution in 1987.

Abuses mounted through the years. In addition to occasional bribery scandals, prosecutors were widely perceived to be influenced by whatever political party held power. President Roh Moo-hyun, during his tenure from 2003 to 2008, sought to break the relationship between politicians and prosecutors and increase the role of judges as a check on prosecutors, but he stopped short of proposing a grand jury system.

WSJ Article Credit Evan Ramstad at evan.ramstad@wsj.com

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U.S.-Korean International Child Custody Fight

Sunday, June 13th, 2010

By Don Southerton, KoreaLegal.org Editor

Child custody cases draw much emotion. International child custody cases even more so, and occur when a parent leaves with the children or in this case refuses to abide to a court order. (See my article on Korea and the Hague Parental Child Abduction Convention HERE)

NJ Man Embroiled In US-Korea Custody Battle

Alejandro Mendoza Fighting For Custody Of Children, Trying To Clear His Name After Wife Accuses Him Of Abusing Kids

A New Jersey man is fighting for his family and defending his name after his wife took his children and accused him of abuse. Two young children are at the heart of an international custody battle, with their mother behind bars and their father fighting to clear his own name. Those circumstances dominated a routine status conference in the Bergen County Courthouse Friday morning.

The case involves Broadway violinist Alejandro Mendoza, who owns a popular music school in Tenafly, and the fallout from his troubled marriage to concern violinist Si Nae Shim, who’s currently being held in the Bergen County Jail on a charge of interference with custody.

Their problems began in the spring of last year, when Mendoza says he gave in to his wife’s wishes and moved the family back to her native South Korea, where he was hired as a university professor. However, he says he changed his mind after about two months and returned to the United States to explore getting a new job here.

“She did call me from Korea and tell me not to come back,” Mendoza said.

Mendoza did go back – with an order of custody from Bergen County courts – but he found his apartment in South Korea empty, and his wife and two young children were gone.

“No parent should ever have to go through what I have gone through for a year,” Mendoza said.

Around the same time, Shim – still in South Korea – accused Mendoza of sexually abusing their children, a charge Mendoza denies.

“This is the most devastating thing that can be done to a loving father, such a monstrous thing,” Mendoza said. ” This is going to hurt the children.”

While traveling in Guam, Shim was arrested for violating the custody order and extradited back to the United States. The children are still in South Korea, living with Shim’s family.

There are several issues on the table, and as attorneys for both sides try to resolve criminal charges and custody rights for the couple’s two children, Judge Carver is keeping everyone on a tight leash in the interest of putting the children first. Everyone is due back in court next Friday.

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North Korean Lawsuits in South Korea’s Courts

Sunday, June 6th, 2010

By Don Southerton, Editor KoreaLegal.org

This amazed me. North Koreans have rights in South Korean courts.  It does reflects a popular Korean mindset–One People, Two Nations.

An article in JoongAhn Ilbo, “More North Koreans filing lawsuits in the South” notes:
More North Koreans are filing claims in South Korean courts as the North’s economy worsens, experts say.

Yoon Dae-kyu, a professor at the University of North Korean Studies in Seoul, said because the South Korean Constitution recognizes the North as a part of the Republic of Korea, North Koreans have the same protections as their Southern neighbors.

The reverse does not hold true. Because the South’s constitution does not recognize the North Korean regime, other legal experts say it’s impossible for a South Korean organization or individual to stand trial based on North Korean law.

In one ruling last month, the Seoul Western District Court rejected a suit filed by a North Korean interest group in Seoul on behalf of North Korean writers who charged that a South Korean publisher violated their copyrights on a medical book.

The Foundation of Inter-Korea Cooperation had hired a lawyer to represent the North Koreans in their 100 million won ($81,499) claim, but the court “couldn’t establish that the attorney had the right of representation for the writers.”

North-South copyright disputes are not an unusual issue in South Korean courts. In another recent case, the North Korean grandson of a North Korean writer was awarded 5 percent of all future royalties on copies of his grandfather’s book “Hwang Jin-i” sold by a South Korean publisher.

The Foundation of Inter-Korea Cooperation, which was established in 2004 to foster cultural exchanges between the two Koreas, said it has so far handled nine cases of copyright violation on behalf of North Koreans with help from a North Korean office that deals with copyright issues.

“Literary works by writers from the North have been introduced to the South through China ever since the South Korean government formed diplomatic ties with China in 1992,” an official from the North Korean interest group said. “But copyright issues remain unresolved.”

But South Korean courts also address inheritance issues between families divided by the Korean War of 1950-53. In February, four North Korean siblings surnamed Yoon filed a 2.5 billion won inheritance claim against their South Korean half-brother and stepmother, after missionaries told them that their physician father had amassed a 10 billion won fortune after defecting to the South during the war.

The North Korean families sought an injunction to prevent their South Korean relatives from selling the father’s real estate, and the case is ongoing.

Attorney Han Myeong-seob, a member of Society for Research on North Korean Law, said he’s aware that the staggering economy in North Korea drove the North Korean government to issue guidelines that encourages its people to file suit to obtain inheritance rights in South Korea.

“It’s critical to come up with special laws that would react properly when local courts rule in favor of North Korean residents,” Han said.

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Korean Law School Strives to Educate Koreans Students in U.S. Law

Sunday, May 23rd, 2010

By Don Southerton, Editor KoreaLegal.org

I found this to be interesting. First the school is in Pohang, which is in southeast Korea and home to POSCO Steel. Second, it seems to be strongly supported by the Christian Legal Society, a non-denominational US-based Christian membership association of lawyers, judges, law professors, law students.

Joongang Ilbo notes
Although Handong International Law School in Pohang, North Gyeongsang, has a short history, it has made great strides toward educating Korean students in U.S. law and helping them to secure jobs overseas.

The school was established in 2002 by Handong Global University with the goal of providing an American-style law school curriculum and nurturing prospective attorneys who will practice in the United States.

Since then, of the 199 students who have graduated from Handong so far, 105 of them have passed bar exams in the United States.

In an interview with Eric Enlow, the dean of Handong International Law School, Enlow said that Handong is making remarkable progress, especially considering that an average of only 32 percent of bar exam applicants who were educated in countries other than the United States pass the U.S. bar exam.

“Fifty-three percent of our graduates have passed bar exams in seven U.S. states including Tennessee and Missouri,” Enlow said. “This is the first time that a Korean law school has produced more than 100 students who passed U.S. bar exams.”

Handong is the only university in Korea that offers and meets the academic requirements set forth by the American Bar Association, which accredits U.S. law schools.

Although the American Bar Association does not accredit foreign law schools outside of the United States and Canada, some states, such as Tennessee, permit the graduates of some foreign law schools to take their state bar exam. Other states, like New York, only allow graduates of foreign law schools who have completed an LL.M. degree at an accredited U.S. law school to take the bar exam.

“Those who have obtained a legal license to practice in the U.S. take jobs in various fields that would not usually be open to an attorney who passed the Korean bar exam,” Enlow said. “We have graduates working at the top five law firms in the U.S., such as Paul Hastings. And between 50 and 60 Handong graduates now work at eight law firms in Korea.”

While there are graduates who work in the legal departments of Korean companies, there are others who serve as legal advisers or attorneys at NGOs working on human rights issues, Enlow added.

Some graduates also get well-paying jobs without obtaining licenses in the United States, Enlow added.

Although Handong is located in the city of Pohang, which is outside of Seoul, Enlow explained the school is quite international. Over 20 percent of Handong International Law School students are foreigners and most of them are scholarship students from developing countries, he said.

“Three graduates work at Vietnamese law firms and a Jordanian graduate works as a United Nations High Commissioner,” he said.

All Handong classes are conducted in English and all put a heavy emphasis on in-class discussions, Enlow said.

“As Handong was established to nurture attorneys in the U.S., our curriculum is very similar to that offered in law schools in the United States, so that’s why states like Tennessee have permitted our students to take their bar exams,” Enlow said. “Students can study here, with a curriculum that is similar to that offered in U.S. law schools, at half the price.”

When asked whether he has any regrets about taking a position that pays him less than he would make as an attorney in the United States, Enlow, a Yale alumnus, said his income has changed drastically but that he had found meaningful work here based on his Christian faith.

Most of the school’s 12 faculty members are members of the Christian Legal Society and many consider teaching here as volunteer work.

“My wife and four children live here with me and my wife educates my children at home,” Enlow. “I’m satisfied with life here and I want to continue working here.”

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