Ahnse Law Offices

25/11/2019

We were asked to provide an overview of big data and various legal issues as they pertain to South Korea......

06/09/2019

Distribution Agreements in Korea

Introduction

There are at least two general themes which pervade: (1) Korea is a highly specialised market; and (2) while Korea has continued to grow and has actively encouraged foreign investment, it has at the same time been protective of its industries often to the chagrin of foreign businesses. If you proposes to enter the Korean market by way of a distributorship arrangement, here are some considerations.

The Law

The main legislation which tends to affect distribution agreements is the Monopoly Regulation and Fair Trade Act (“MRFTA”), the Fair Agency Transaction Act (“FATA”), their supporting Enforcement Decrees and various subordinate guidelines. The law in this regard is administered by the Fair Trade Commission.

• Re-sale price maintenance is illegal.

• Required minimum purchases are illegal.

• Targets and early termination therefor need to be considered with extreme caution.

• Imposing more stringent contractual terms when a contract subsists is a very tricky area.

• Excessive contractual provisions impinging on local management are illegal.

Conclusion

Do you do due diligence before entering the market.

11/03/2018

http://www.atimes.com/article/kims-initiative-breakthrough-world-waiting/

The consensus seems to be that talking is better than killing one another. However, I do not see how it is possible to have good faith talks with an amoral regime. My feeling is that Trump put the cart before the horse somewhat by agreeing to meet without prior preliminary discussions. He reminds me of a rather repugnant (and again amoral) Bruce Willis / Die Hard type character. Both the ends and means are suspect!

North Korea has offered every precondition Seoul and Washington set for talks. But while the spectrum of opportunity has dramatically expanded, so, too, have the risks

06/02/2018

A great day for the rule of law!

The invulnerability of business leaders, contrasted with the vulnerability of political ones, indicates that even the reformist Moon administration remains wary of taking on the big Korean corporations.

05/02/2018

The in and outflow of capital is regulated by the Korean government. The Foreign Investment Promotion Act was enacted following the Asian Financial Crisis of the late 1990s to encourage foreign investment into Korea. The Act provides certain benefits to foreign investors. The minimum FDI qualifying amount is KRW100 million (US$93,000 approx.).

01/02/2018

It will be interesting to see how the Korean authorities will regulate the emerging crypo markets. There are currently restrictions on foreign individuals trading on local exchanges. These restrictions do not however apply to Koreans. We heard anecdotally yesterday of a Japanese who came to Korea to arbitrage the price differential between cryptos in Japan and Korea. That person made a profit and converted it first into gold and then into Yen. The gold and Yen transactions were supported by the proper paperwork. However, the person fell foul of the authorities when he tried to take Yen out of Korea because the original transaction being crypto based had not been reported. It is not clear however whether there is a defined reporting process for such! As an aside, we have been approached by foreign investors who want to establish a Korean corporation presumably to avoid the restrictions on foreign individuals and to arbitrage the price differentials.

28/01/2018

Korea has a Civil law system (as opposed to Common law). Ultimately, it has its roots in Roman law. It can also trace its history to the Napoleonic Code. In the latter part of the 19th century the Emperor Meiji of Japan sent envoys to assess foreign legal systems. It was considered that Prussia had the best at the time. Japan broadly adopted that system of laws. These were then imposed on Korea during the colonial period in the early part of the 20th century. More recently, it has been influenced by US law. Globalisation is not a new concept!

24/01/2018

Interesting.

23/01/2018

An interesting article on seemingly discriminatory practices in the crypto currency market. I heard from a friend yesterday that exchanges were imposing money laundering controls on foreigners but not Koreans.

“If they’re not Korean citizens, then they can invest in exchanges provided in their countries. Why do they have to invest in ours?”

23/01/2018

The purpose of this page is to provide information about current issues of interest in Korea - not just legal but general - to assist in creating a genuine awareness of what is happening on the ground.

23/01/2018

http://www.atimes.com/article/sensitivities-flare-south-korea-north-korean-visit/

A good article on the perceived rapprochement between the Koreas by a local journalist friend of mine.

Seoul is devoting significant resources to enable the last-minute participation of North Korea at next month’s Winter Olympics. The process is not without its critics