Recent Trends of Summer

2010
Vol.01

Law & Regulation in Korea

Focusing on Business and Investment

A Message from the Minister

Law and Regulation
Introduction of the Policies of
the Ministry of Justice
Expert Column
Immigration Information of Korea
for Investors
Invest Korea
Introduction of the Korean
Legal System

Appendix
 Recent Trends of Summer
2010
Vol.01

Law & Regulation in Korea Focusing on Business and Investment

03 A Message from the Minister

Law and Regulation

04 Enactments and Amendments of Law
10 Court Decisions

Introduction of the Policies of the Ministry of Justice

14 Crackdown on the Distribution of Pirated Copyright Material
16 Establishing of Labor Relations and Strike Culture
that Respect Laws and Principles

Expert Column
17 The Maturing Korean Legal Market

Immigration Information of Korea for Investors

18 Information for Investment in Korea

Invest Korea
20 Foreign Investment Ombudsman System

Introduction of the Korean Legal System

22 Korean Legislative System and Procedures
Publisher 24 The Constitution
Lee, Kwi-Nam / Minister of Justice
Editor
Sung, Yung-Hoon / Deputy Minister, Office of Legal Affairs Appendix
Edited in International Legal Affairs Division 28 Government Departments, Law Schools, Public Enterprises
Published by Ministry of Justice
Recent Trends of Law& Regulation in Korea |
I wish that this magazine
provides both current
and potential foreign investors
with a useful "compass" to trust
Korea's investment-friendly
environment.
A Message from the Minister
D ear Readers:
The Republic of Korea has maintained a keen interest in attracting foreign direct investment
since it undertook industrialization back in the 1960s. Starting from 1998, Korea has made
every endeavor to improve its investment environment for foreign investors. As a result, for-
eign direct investment inflows into Korea have risen 3,281-fold to USD 11.483 billion in 2009
from USD 3.5million in 1962, and the nationalities of foreign investors have diversified,
expanding from not only the US but also Europe, Asia, and Central and South America today.
The increase in foreign direct investment has led to a rise of interest in Korea's laws, court
rulings, and government policies. However, the lack of materials regularly published regarding
Korea's latest laws, trend of court decisions, etc. for foreign investors sometimes hindered
them in making decisions to invest in Korea, and caused distrust or misunderstandings of the
transparency of the Korean government policies and the fairness of Korea's law enforcement,
and judicial system.
For these reasons, the Ministry of Justice of Korea is launching this inaugural issue of "Recent
Trends of Law & Regulation in Korea" which contains the latest laws and court precedents in
the areas of investment, economy, and trade. The "Recent Trends of Law & Regulation in
Korea" is a periodical published in English which consists of Korea's latest enactments or
amendments of laws, recent trends of court decisions, principal government policies relating
to foreign investment and business environment, an expert column, and immigration news for
foreign investors among other things.
I wish that this magazine provides both current and potential foreign investors with a useful
"compass" to trust Korea's investment-friendly environment, and better understand the Korean
government policies and legal system through easier access to Korea's policies and laws.
Minister of Justice Republic of Korea Lee, Kwi-nam
Summer 2010 Vol.1, No.1
03
Recent Trends of Law& Regulation in Korea | Law and Regulation
Enactments and
Amendments of Law
NOTE: The translation is NOT official, and only serves a guideline.
Act on the Registration of Real Estate under
01
Actual Titleholder's Name
Reason for Proposal and Main Content
The current law uniformly calculates penalty based on the real estate
value of "as of the day on which the penalty is imposed" when imposing
penalty on those who did not carry out the responsibility to register under
the actual titleholder's name. This calculation is regardless of whether
the title trust relations ended or registration under the actual titleholder's
name exists. The law violates the rights to property and equality guaran-
teed under the Constitution since it includes in calculation of the penalty,
the increase in real estate value during periods in which the law was not
infringed.
This proposal intends to revise the current law so that in cases where
the title trust relations exist, penalty is imposed as before, but in cases
where the title trust relations do not exist, penalty is imposed based on
the real estate value of the point in which the trust fund ended or the
real estate was registered under the actual titleholder's name (Article 5
(2) of the Proposal).
8th partial revision 11 May 2007, Act No. 8418
Recent Trends of Law & Regulation in Korea
04
The National Assembly of the Republic of Korea
02
Commercial Registration Act
Reason for Proposal
Under the existing law, a restriction is imposed for the identical type of
business operations to register under the same or similar trade name
that has already been registered by another entity. Moreover, even in the
case of the establishment of small stock company, the issuance of cer-
tificate of deposit of the paid-in capital from financial institutions must
be submitted. Thus, the establishment of enterprise is costly and time
consuming, and hence the need for reform.
Main Content
A Relaxation of the restrictions on the trade name that cannot be regis-
tered for the same business purpose (Article 30)
(1) At present, trade name which cannot be clearly distinguished from
trade name that has already been registered by another entity cannot be
registered in the same Special Metropolitan City, Metropolitan City, City
or District Area for the operation of the same kind of business. Hence, for
the establishment of enterprise, the search for and selection of trade
name is too time consuming and there is an apprehension for the volun-
tary discretion of the registration authority in distinguishing resemblance
of trade names.
(2) For the trade name that cannot be registered in the same Special
Metropolitan City, Metropolitan City, City or District Area for the opera-
tion of the same kind of business, the registration should be limited to
the register of identical trade name that has already been registered by
another entity.
(3) There is much anticipation that the business founder's predictability
for the use of trade name will be greatly enhanced, the required time and
cost for the selection of trade name will be reduced, and that the trans-
parency for trade name registration will be increased.
B Replacement of the certificate of deposit of paid-in capital with the
balance certificate in the case of the registration of alteration caused by
the registration of small stock company and the issuance of new shares
(Article 81.1 and Article 82.5)
(1) Even for the case of the establishment of small stock company, the
issuance of certificate of deposit of the paid-in capital from financial
institution must be submitted. Thus, the complex and burdensome issu-
ing process hinders speedy establishment of enterprise.
(2) For the incorporation of stock company with a total capital of less
than a billion won, the Commercial Act should be revised to allow the
transfer of the certificate of deposit of paid-in capital to the financial
institution's balance certificate. Consequently, for the application of reg-
istration of alteration due to the registration of establishment of stock
company and its issuance of new shares, the required documents stipu-
lated in the Commercial Registration Act must be in accordance to the
amended Commercial Act.
(3) It is much anticipated that the process for the establishment and reg-
istration for alteration of small stock companies will become more
streamlined.
1st partial revision 28 May 2009, Act No. 9749
inquiry about the property under debtor's title becomes impossible.
B Regulations regarding living expenses are determined by the
Presidential Degree (Article 195. 3, Article 246. 1. 4 proviso newly added)
(1) Specific range of amount prohibited for seizure regarding one-month
living expenses, minimum living costs, and average household living
expenses is determined by the Presidential Degree.
C Prohibition to seize the minimum living cost from a worker's wage
(Article 246. 1. 4)
(1) In order to reform the current practice of permitting the uniform seizure
of one half of worker's wage which would threaten the right to life
(2) To prohibit the seizure of a worker's wage that corresponds to the
minimum living cost.
D Permission to seize the amount of a worker's wage that exceeds the
average household living expenses (Article 246. 1. 4)
(1) In order to reform the current practice whereby allowing the uniform
seizure of only one half of a high wage worker, the rest of wage that
exceeds the average household living expenses are not being used to
discharge the debt.
(2) To permit the seizure of the amount of a worker's wage that exceeds
the average household living expenses.
E Simplification of preservative measures revocation process for preser-
vative measures (Article 281 and Article 288)
(1) Change the revocation trial regarding provisional seizure and disposi-
tion from ruling to determination
1st partial revision 27 Jan. 2005, Act No. 7358

03
Civil Execution Act
Reason for Proposal
This proposal is to enable tracking of property under a fugitive debtor's
title by relaxing the currently strict conditions for inquiry about the
debtor's property, to guarantee livelihood of low wage workers by pro-
hibiting the seizure of minimum living cost, and to provide swift remedy
of private rights violation by enabling a convenient method of revoking
unjust provisional seizure or disposition.

Main Content
A Permission to inquire about the property of a fugitive debtor
(Article 74. 1)
(1) In order to reform the current practice where in case the debtor flees,
because the procedure for specification of property cannot be concluded,

Summer 2010 Vol.1, No.1

05

04
Check Act
Reason for Proposal
In order to reduce logistics costs that amount to tens of billions of Korean
Won annually spent on tasks related to clearance of check and to
improve efficiency of the work process, the proposal seeks to grant
effect of presentation for payment to electronic transmission and recep-
tion of check information in accordance with the Check Act and newly
establish regulations on delegating verification among financial institu-
tions, thereby preparing legal basis for electronic exchange of check.
Main Content
A Acknowledgment of effect of presentation for payment by electronic
transmission and reception (newly established Article 31. 2 of the
proposal)
B Preparation of applicable provisions on delegating verification duty to
presentment banks (newly established Article 35. 2 of the proposal)
C Preparation of applicable provisions on delegating declaration of non-
payment to a presentment bank entrusted by drawee (Article 39. 2 of the
proposal)
2nd partial revision 17 May 2007, Act No. 8441
05
Bills of Exchange and Promissory Notes Act
Reason for Proposal
In order to reduce logistics costs that amount to tens of billions of Korean
Won annually spent on tasks related to clearance of promissory notes,
and to improve efficiency of the work process, the proposal seeks to
grant effect of presentation for payment to electronic transmission and
Recent Trends of Law & Regulation in Korea
06
reception of promissory notes information in accordance with the
Promissory Notes Law and to newly establish regulations on delegating
verification duty among financial institutions, thereby preparing legal
basis of electronic exchange of promissory notes.
Main Content
A Acknowledgment of effect of presentation for payment by electronic
transmission and reception (newly established Article 38. 3 of the
proposal)
B Preparation of applicable provisions on delegating verification of pre-
senting financial institutions (newly established Article 40. 4 of the
proposal)
2nd partial revision 17 May 2007, Act No. 8440
06
Customs Duties Act
Reason for Proposal
This proposal seeks to enhance and supplement inadequacies that have
arisen during the operation of the current system through measures such
as: a) preventing double taxation of bonded factories and simplifying the
procedures for declaring tax on raw materials; b) reinforcing the protec-
tion of intellectual property rights through measures such as the intro-
duction of a system where the head of the customs office has the power
to directly postpone the customs clearance of copyrights, as is the case
with trademarks; c) providing procedural benefits to excellent certified
enterprises in safety management of export and import.
Main Content
A Prevention of double taxation on bonded factories and improvement
of the procedures for declaring tax on raw materials (Article 106. 1. 2 and
Article 189)
(1) There is a need to improve the business environment of bonded facto-
ries by realizing the requirements for obtaining a refund of customs
duties, which is currently inducing double taxation, and simplifying the
procedures for declaring tax on raw materials.
(2) Where the goods produced in bonded factories are different from the
terms of a contract, the customs duties thereon shall be refunded even if
they are brought in a bonded factory other than the one that made an ini-
tial import declaration. Also, where application for taxation on raw mate-
rials is filed in bonded factories, the head of the customs office may
allow the factories to file an application, not by raw materials brought
into a bonded factory, but by raw materials or goods, or for the bonded
factory as a whole.
(3) It is expected that by preventing the double taxation of goods differ-
ent from contract terms and simplifying the procedures for declaring tax
on raw materials, the tax burdens of bonded factories will be lessened.
B Collection and analysis of information on the origins of exported and
imported goods (creation of Article 233-2)
(1) There is a need to provide countermeasures for the increase of tasks
regarding the identification, decision, and verification of the origin of
goods following the expansion of Free Trade Agreements, etc.
(2) The head of the customs office shall collect and analyze the informa-
tion necessary for the identification, decision, and verification, etc. of the
origin of goods but may consign a part of the task to a corporate body or
the head of an organization as prescribed by Presidential decree.
C Reinforcement of protection of copyrights, etc. (Article 235)
(1) Unlike trademarks, copyrights are not receiving sufficient protection
during the customs procedures, necessitating higher protective meas-
ures. In addition, there is a possibility that counterfeited goods may be
cleared in the case where the person declaring exports and imports pro-
vides security for such goods.
(2) As in the case of trademarks, matters related to copyrights shall be
allowed to be reported to the Commissioner of the Customs Service in
order to facilitate the efficient crackdown on goods that have infringed
copyrights, etc. In the event that infringement of copyrights, etc. is evi-
dent, the head of the customs office shall have the authority to postpone
the clearance of the goods. Counterfeits, goods with similar trademarks,
or illegal reproductions shall be forbidden from being cleared even if
security is offered.
(3) It is expected that the reinforcement of copyrights will support the
promotion of relevant industries.
D Provision of benefits to excellent certified enterprises in safety man-
agement of export and import (creation of Article 255-2)
(1) There is a need to provide benefits to excellent enterprises in safety
management in order to reinforce safety management of export and
import and facilitate prompt customs clearance by strengthening cooper-
Unlike trademarks, copyrights are
not receiving sufficient protection during
the customs procedures, necessitating
higher protective measures. In addition, there
is a possibility that counterfeited goods
may be cleared in the case where the person
declaring exports and imports provides
security for such goods.
ation between public-private entities or countries.
(2) If a business dealing with trade matters such as manufacture, trans-
port, storage and customs satisfies certain safety management stan-
dards, the Commissioner of Customs Service shall certify the business as
an "excellent enterprise in safety management of export and import", and
provide benefits during customs procedures, as well as facilitate recipro-
cal certification with other countries.
(3) It is expected that excellent enterprises in safety management will be
allowed speedy customs clearance.
59th partial revision 31 Dec. 2007, Act No. 8833
07
Framework Act on National Taxes
Reason for Proposal
The proposal seeks to improve and supplement the inadequacies in the
operation of the current system through various ways. This includes
extending the Period for Excluding Assessment of National Tax in accor-
dance with the extension, from five to ten years, of the Deduction Period
for Deficit Carried Forward, as well as integrating various committees
that perform similar tasks within the National Tax Service, Regional
National Tax Service, and tax offices into the National Tax Examination
Committee. In addition, the proposal also seeks to extend, from six
months to two years, the period during which surtaxes are reduced for
revised reports in order to encourage candid reporting by the taxpayer.
Main Content
A Extension of the Period for Excluding Assessment of National Tax in
accordance with the extension of the Deduction Period for Deficit Carried
Forward (creation of provisions Article 26-2.1.5 and Article 85-3.2)
(1) As the Deduction Period for Deficit Carried Forward has extended
from five years to ten years, there is a need to extend the Period for
Excluding Assessment of National Tax and the preservation period of
ledgers and documentary evidence.
Summer 2010 Vol.1, No.1
07
(2) If deduction for Deficit Carried Forward is applied exceeding five
years, then the Period for Excluding Assessment of National Tax and the
preservation period of ledgers and documentary evidence should be
extended by one year from the end of the legal term of return during
which the deficit carried forward is deducted.
B Expansion of surtax reduction benefits for revised reports (Article 48.2)
(1) There is a need to extend the surtax reduction period, currently limited
within six months for revised reports after the legal term of return.
(2) Even if the revised report is filed beyond six months but within one
year since end of the legal term of return, 20/100 of the surtax levied will
be reduced, and if the revised report is filed beyond one year but within
two years since the end of the legal term of return, 10/100 of the surtax
levied will be reduced.
(3) It is expected that the expansion of opportunities to self-revision will
encourage candid reporting by the taxpayers.
C Integration of Objections Review Commission and Pre-Taxation
Review Commission into the National Tax Examination Committee
(Deletion of Article 64.3, creation of Article 66, Article 81-12, and Article
66-2)
(1) The Objections Review Commission, the Pre-Taxation Review
Commission, and the National Tax Examination Committee, which per-
form similar tasks, need to be combined for efficient management and
operation.
(2) The National Tax Examination Committee, which is currently operated
by the National Tax Service, should also be installed at Regional
National Tax Services and local tax offices. In addition, the Objections
Review Commission, which is currently operated by the Regional
National Tax Service and tax offices, and the Pre-Taxation Review
Commission, which is currently operated by the National Tax Service,
Recent Trends of Law & Regulation in Korea
08
Regional National Tax Services, and local tax offices, are to be combined
with the National Tax Examination Committee.
D Permission of ledgers and documentary evidence to be converted and
stored as digitized documents (Creation of Article 85-3.4)
(1) Ledgers and documentary evidence stored as digitized documents in
certified electronic document archives in accordance with the Framework
Act on Electronic Commerce are to be acknowledged as such by the tax
code.
(2) The reduction of production, storage, and distribution costs of paper
documents of corporations due to the use of digitized documents in
accordance with the Framework Act on Electronic Commerce will hope-
fully increase productivity.
38th partial revision 26 Dec. 2008, Act No. 9263
08
Corporate Tax Act
Reason for Proposal
This proposal aims to a) reasonably improve the policy of non-inclusion
of dividend amount by one corporation from another; b) reduce the tax
burden of corporations through mitigating requisites for inclusion in
deductible expenses concerning business assets acquired through
National Treasury subsidies; c) increase additional tax rate imposed
when issuing false receipts in order to promote the transparency of the
donation system; d) impose the responsibility of report and payment to
transferors in order to supplement the withholding policy regarding capi-
tal gains from securities of foreign corporations; and e) improve and sup-
plement partial inadequacies that have risen during the operations of the
present system.
Main Content
A Include industry-academic cooperation technology holding companies
in the scope of holding companies subject to application of non-inclusion
of received dividend amount in gross income (Article 18-2. 1)
B Exclude non-profit domestic corporations from the scope of corpora-
tions subject to application of the non-inclusion of received dividend
amount in gross income (Article 18-3. 1)
C Clarify the scope of corporation subject to exclusion of the non-inclu-
sion of received dividend amount in gross income by indicating cases
that a) corporations that have been paid dividends, b) other domestic cor-
porations that have been paid dividends, and c) corporations that have
been invested by other domestic corporations that have paid dividends
are all subsidiaries (Article 18-3. 1. 4)
D Improve policy regarding inclusion of deductible expenses through
extending deadline for acquirement of business assets procured through
National Treasury subsidies (Article 36. 2)
E Clarify period of the determination of occasional imposts by proclaim-
ing that when a cause for occasional imposts has occurred before the
time limit of report of tax base, the period of occasional impost shall be
from the first day of the immediately previous business year until the day
the cause for occasional impost has occurred (Article 69. 2)
F Ensure transparency of the donation system by increasing the surtax
rate a) from 1/100 to 2/100 of the amount for which the donation receipt
is issued differently from the actual amount; and b) from 1/1,000 to
2/1,000 of the amount for which the details of the issuance of the dona-
tion receipts is not complied and kept properly (Article 76. 10)
G Impose the additional tax in the case of refusal to issue cash receipts
or issuing a falsified cash receipt, which shall be only applied to transac-
tions of 5,000 won or more (Article 76. 12)
H Improve taxation policies regarding gains from transfer securities
owned by foreign corporations through prescribing the obligation to
report corporate tax on domestic source income in cases where a foreign
corporation without any domestic place of business transfers stocks or
other securities to a non-resident or foreign corporation without any
domestic place of business (creation of Article 98-2. 3)
I Reduce stocks subject to the submission of "detailed statement on
change of stocks" to only stocks of majority holders and specially-related
persons thereof in the case of stock-listed corporations and KOSDAQ-
listed companies (Article 119. 2)
61st partial revision 31 Dec. 2007, Act No. 8831
Impose the additional tax
in the case of refusal to issue cash receipts
or issuing a falsified cash receipt,
which shall be only
applied to transactions of
5,000 won or more (Article 76. 12)
09
Deposit Act
Reason for Proposal
The current Deposit Act does not stipulate the extinctive prescription on
the rights to claim deposits and collect payments concerning the deposit-
ed principal and interest. Therefore, in practice, the 10 year extinctive
prescription for ordinary bonds under the Civil Act is applied. However,
the Deposit Act has no provision for the extinctive prescription provided
in the Civil Act to be applied to the Deposit Act as well. This not only
results in the interpretive problem of applying on extinctive prescription
provided by the Civil Act, but also prevents the general public from being
aware of such an extinctive prescription.
Therefore, it is necessary to state in the Deposit Act 10 year extinctive
prescription for claiming and collecting deposited principal and interest.
Main Contents
Rights to claim the deposited principal and interest in Articles 1 and 2 of
the Deposit Act become nullified if the rights are not exercised for 10
years following the first date on which the rights can be exercised.
(creation of Article 9(3))
6th partial revision 29 Dec. 2009, Act No. 9836
10
Nationality Act
Reason for Proposal and Main Content
The Ministry of Justice, according to established rules, has revoked per-
mission for naturalization, reinstatement of nationality, or adjudication of
nationality that have been received through use of false or unlawful
measures. However, as the acquisition of nationality is a critical issue
that determines the legal status of citizenship, the aforementioned cases
needed to be directly prescribed by law. The Prescription of the bases for
revocation by the Minister of Justice in the revised Act is to prevent
unlawful acquisition of nationality by securing the objectives of greater
clarity and enhancing administrative predictability.
9th partial revision 14 Mar. 2008, Act No. 8892
Summer 2010 Vol.1, No.1
09
 Court Decisions
NOTE: The translation is NOT official, and only serves a guideline.
Constitutional Judgment
01
The Constitutional Court, 29 Dec. 2009, 2009HunBa25
Confirmation of the Unconstitutionality of Article 130(3), etc.
of the Civil Execution Act
The system of required security deposits for appeals cannot be deemed
as violating the essential aspects of the right to be tried unless the
amount is unreasonably large as to make the appeal impossible or
extremely difficult. The dismissal of the appeal against the decision to
permit the sale due to the failure to comply with the security deposit pro-
vision cannot be seen as breaching the right to an appeal by making it
impossible or extremely difficult to exercise the right. Thus, according to
the principle of proportionality, the provision in question does not violate
the claimant's right to be tried.
This provision has a justified legislative purpose of attempting to prevent
the delay of compulsory execution due to the overuse of the right to
appeal. It is an appropriate method of requiring the appellant to pay a
security deposit that guarantees the non-abusive character of the appeal.
One tenth of the bid price paid as a security deposit is considered a rea-
Recent Trends of Law & Regulation in Korea
10
sonable amount in order to prevent the overuse of the appeals process,
and is subsequently returned when the appeal is accepted; thus, the pro-
vision also satisfies the principle of least infringement. Furthermore, a
balance of legal interests is displayed as the public interest of a speedy
and appropriate procedure of execution outweighs the private interest
regarding the obligation to pay the guarantee for appeal. Therefore, the
provision in question cannot be deemed as infringing the claimant's prop-
erty right by violating proportionality.
Civil Judgment
02
The Supreme Court, 15 Oct. 2009, 2007Da45876
Damages
1. Since the period of existence for the patented invention subject to this
case expired on the day of closing argument of the original court on
January 20, 2007, before the original closing of oral proceedings which
was to have taken place on April 19, 2007, the plaintiff cannot make an
allegation on the dismantlement of the prohibition against patent
infringement or patent infringed product under Article 126 of the Patent
Act towards the defendant on the already expired patented invention.
2. Since the defendants infringed the patent right of the plaintiff by manu-
facturing and selling the patented products, under Article 130 of the
Patent Act,, the defendant is thereby presumed at fault for committing an
act of infringement. Although the trial decision that corrects the scope of
request for the invention mentioned in No.1 above of this case has been
decided as such in the original court after the defendants have manufac-
tured and sold the patented products, as the invention mentioned in No.1
above of this case has not caused any substantial change to the scope of
request for patent to the decision made before and after the trial decision
for correction, the legal principles that presume the act of infringement of
the defendants on the patent right of the invention mentioned in No.1
above of this case shall remain the same before and after the correction.
03
The Supreme Court, 15 Oct. 2009, 2006Da43903
Registration of Ownership Cancellation
In a case requesting implementation of the registration recovery process
for expired property registration, defendant eligibility lies solely with the
obligator of registration recovery. In case that the provisional registration
expires after transfer of registration of ownership to the third party
acquisitor is complete for provisionally registered property, the obligator
in the case of registration recovery process for expired property registra-
tion is the third party acquisitor who is the property holder at the time of
expiration. Therefore, claim of registration recovery for such provisional
registration must be against the third party acquisitor, who is the obliga-
tor in such a case.
04
The Supreme Court, 10 Dec. 2009, 2009Da51158
Wages
The Supreme Court held that, even though the regulations regarding
working hours and holidays of the Labor Standards Act do not apply to
employees working in the businesses covered by Article 63.2 of the same
Act, if the User's employment regulations, etc., have provisions with the
intent of paying allowance for overtime work within the scope of regular
wage, it must be viewed that the User has agreed to pay the allowance
for overtime work according to terms of the employment regulations. The
legal principles of the decision will also apply to the businesses covered
by Article 63.1 of the Labor Standards Act, whose substance of labor
relations and intent of regulations subject to the foregoing legal princi-
ples can be seen as equivalent.
05
The Supreme Court, 10 Dec. 2009, 2008Da57852
Wages
When entering into employment contract, the principle is to pay employ-
ees the sum total of a determined base wage and various allowances.
Nevertheless, a wage contract or a collective agreement pursuant to the
so called inclusive wage system whereby the wage is determined 1) by
adding up various allowances without setting a base wage; 2) by a daily
wage rate; 3) by adding various allowances to a predetermined base
wage shall still be valid if the contract is not disadvantageous to the
employee. The evaluation to determine whether an agreement has been
made under the inclusive wage system must be based on a wide number
of factors including working hours, job design, nature of tasks required,
wage measurement unit, contents of collective agreements, conditions of
employment and working conditions of comparable workplaces. Even if
work during extended hours, night time, and on holidays ("overtime") are
typically expected for some individual cases depending on the nature of
the job, when a collective agreement, condition of employment or wage
regulation explicitly states that the wage for overtime shall be paid in
specific categories separately from the base wage, then the wage for
overtime shall be paid in specified categories separately from the base
wage, then the wage for overtime shall not be included in the inclusive
wage system. Thus, it cannot be hastily concluded that there has been an
agreement under an inclusive wage system such as the one mentioned
Summer 2010 Vol.1, No.1
11
above based on the argument that there has been an understanding on
overtime work in a collective agreement or that the rate of wage
increase includes various allowances in addition to base wage.
06
The Supreme Court, 24 Dec. 2009, 2007Da73277
Wages
In light of the normative intentions in regulating holiday and paid holiday
systems, certain premises can be naturally derived. These premises will
have to be met in order to apply the special provision of paid holidays,
during which employees are paid wages even without providing labor.
Such premises include normal employment relations, namely the condi-
tion where the employee has been providing labor and is expected to
continually provide labor in the future. Therefore, circumstances such as
a leave of absence due to personal reasons mean that the main rights
and obligations of the employee are discontinued and the employee does
not provide labor. Except in special cases, the employee cannot exercise
his or her right to demand wages, a right that compensates for the obli-
gation to provide labor, during such circumstances. Consequently, the
employee also cannot exercise his or her right to demand wages for paid
holidays that are included during the term of leave of absence. This legal
principle can also be applied in the case of a strike, an act of dispute dur-
ing which the main rights and obligations of the employee are discontin-
ued, and the employee cannot exercise his or her right to demand wages
as in the case of leave of absence. The employee also consequently can-
not exercise his or her right to demand wages for paid holidays that are
included in the period of strike.
07
The Supreme Court, 12 Nov. 2009, 2008Da41451
Price of Construction
Article 163(3) of the Civil Act states a short extinctive prescription for
three years that applies to "claims of contractors for the execution of
Recent Trends of Law & Regulation in Korea
12
their works," in which "claims" refer not only to construction loan claims
of the contracted work, but also to those claims that accompany the con-
struction. In the meantime, Article 166(1) of the Civil Act regulates that
"extinctive prescription shall run from the time it becomes possible to
exercise a certain right." In this context, "the time it becomes possible to
exercise a certain right" is when there are no legal obstructions such as
the failure to reach the time of performance or to fulfill the conditions of
exercising the rights entailed in a condition precedent.
08
The Supreme Court, 24 Dec. 2009, 2008Da15520
Consolidation of Shares
1. According to Addenda Article 5(2) of the former Commercial Act
(before being wholly amended by Act No. 4372, May 31, 1991), unlike
the consolidation of shares aimed to reduce capital, a consolidation of
shares in order to increase the value per share to more than KRW 5,000
does not accompany a reduction of capital; however, this is no different
from the consolidation of shares aimed towards a reduction of capital in
the sense that the consolidation of shares accompany a cancellation of
old shares and issuance of new shares. Nevertheless, if it is possible for
anyone to file a lawsuit without limitations regarding the effect of the
issuance of new shares and cancellation of old shares in the process of
shares consolidation, the legal relations between the material basis of
the stock company, shareholders, and shares influential to the interests
of a third party would not be confirmed in a prompt and uniform manner,
which may also threaten the internal stability of the stock company as
well as the security of its external transactions. Thus, Article 445 of the
former Commercial Act shall be inferred from and applied to such cases,
within a scope that does not go against the nature of this Act, in order to
enable nullification only through filing an action for nullification of con-
solidation of shares within six months from the date of registered alter-
ations of the consolidation of shares.
2. "Action" in Article 445 of the former Commercial Act refers to an
action for the modification of rights, which in principle allows neither
affirmation for nullification of the consolidation of shares through the
action for affirmation of nullification in typical civil cases nor the asser-
tion of nullification of consolidation of shares as a preliminary question
in a case handling other legal relations. However, in the case in which
procedural and substantial problems are so grave that the consolidation
of shares is deemed to be nonexistent, such as when the consolidation
of shares is registered superficially despite lacking any substance, the
nonexistence of consolidation of shares can be asserted without being
limited by the time for bringing action through an action for nonexistence
of consolidation of shares or as a preliminary question to a case handling
other legal relations .
3. The purpose of Addenda Article 5(2) pertaining to Article 440 of the
former Commercial Act which prescribes a certain period of time in the
consolidation of shares in order to enforce the procedure of notice and
public notification, is to enable the company to collect/withdraw the old
shares in advance in order to see those who will receive new shares and
to prevent the circulation of old shares. In the event that the company
has not adhered to such a process of public notification, a case for nullifi-
cation of consolidation of shares may exist without special cause.
However, if the company has already registered the consolidated shares
through proper procedures such as holding a stockholders' meeting and
has omitted only the aforementioned public notifications, the company
cannot be deemed as having grave procedural and substantial problems
in its consolidation of shares as to lead to its nonexistence.
Administrative Judgment
09
The Supreme Court, 10 Dec. 2009, 2007Du19683
Revocation of Disposition Rejecting Correction
for Corporate Tax
Even if a legal person facing favorable change in both the interest rate of
reorganization debt and the maturity date in accordance with the
Decision on the Authorization of Company Consolidation Plan has
assessed the book value of reorganization debt into present value with
the business accounting standard, deducting the discount on the present
value from the book value and including it as gains on valuation of debt,
thereby assessing the debt into present value with valid interest rate dur-
ing intermediate reimbursement of reorganization debt - in other words,
the difference between the value deducted from book value by discount
on present value and reimbursement value, - thus accounting the differ-
ence as profit and loss by reimbursement, unless the discount on present
value and gains from valuation that is calculated by assessing the unpaid
debt into present value are not approved by Corporate Tax Law, the debt
before it is assessed into present value, namely, the discount on present
value, should be included as income according to reimbursement based
on book value even in the case the debt is reimbursed intermediately. In
calculating income based on Corporate Tax Law when reorganization
debt is reimbursed intermediately, it is appropriate to include the gross
income the discount on the non-depreciated present value which equals
the difference between the book value and reimbursed value, as a
means to reflect the increase of net asset of the legal person arising
from the discrepancy in terms of calculating income.
Criminal Judgment
10
The Supreme Court, 12 Nov. 2009, 2009Do7908
Violation of the Labor Standard Act
The violation of Article 112(1) and Article 36 of the Labor Standards Act
(before wholly amended by Act No. 8372 on April 11 2007, hereinafter
the same shall apply) occurs when the employer fails to fulfill his pay-
ment obligation, such as the retirement allowance due to the worker's
retirement, within 14 days after the cause for payment has risen as is
defined by Article 36 of the said Act. As such, since a worker's applica-
tion for retirement allowance incurs when the employment relationship
legally terminates through retirement; as long as the employment con-
tract stays valid, under no circumstance is the employer's retirement
allowance payment obligation to be incurred and hence the above viola-
tion does not constitute a crime. Moreover, the same rule applies even
when the effectiveness of the dismissal and its retirement allowance
payment obligation retroactively terminates vis-a-vis the employer's can-
cellation of the disposition of dismissal.
Summer 2010 Vol.1, No.1
13
Recent Trends of Law& Regulation in Korea | Introduction of the Policies of the Ministry of Justice

Crackdown on the Distribution

of Pirated Copyright Material
Recent Trends of Law & Regulation in Korea
14

Intensive Crackdown on Intellectual
01
Property Right (IPR) Criminals
Korean Ministry of Justice(MOJ) launches a 24/7 intensive crackdown
on IPR criminals led by the "IPR Prosecutor Department" in 26
Prosecutors' Offices across the country and traces the supply source of
"heavy uploaders" and Web hard companies, etc. which lead to the dis-
tribution of counterfeit, and keeps it out of the distribution channel.
In addition, Korean government increased law enforcement personnel
cracking down on pirated copyright material including computer software
by more than threefold to 97,695 in 2009 from 31,106 in 2007. It also
raises awareness of Intellectual Property (IP) protection by holding
accountable large portal websites and online shopping malls, etc. for
neglecting infringement of IP.
Current principle crackdown cases
June 2008: cracking down on six employees of Web hard companies and
five people who counterfeited movies
December 2008: cracking down on eight executives and 40 users of large
Korean portal websites called "Naver" and "Daum" for illegally using
sound data
March 2009: cracking down on two employees of video clip portal web-
sites for assisting the breach of the Copyright Act
February 2010: cracking down on 17 Web hard businesses and uploaders
who massively distributed pirated movies and broadcast programs, etc.
through Web hard
management of the "Copyright Forensic Center" with the Ministry of
Culture, Sports, and Tourism and the Korea Copyright Commission, etc.
Copyright Forensic Center: An expansion of the "Department for Digital
Evidence Analysis" of the Korea Copyright Commission into the
"Copyright Forensic Center" in 2012, to support the special judicial police
in crackdown activities of the Ministry of Culture, Sports, and Tourism
04
Efforts to Increase Awareness
of the Protection of IPR
Korean government endeavors to prevent re-offense through promoting
awareness of the protection of IPR as well as requesting the Korea
Copyright Commission to educate adolescents charged for copyright vio-
lations and strengthening the legal educational program of the MOJ
regarding copyright protection including cases of online copyright viola-
tions. For example, MOJ conducted an online copyright protection cam-
paign jointly with seven major domestic portal websites in January 2009.
Strengthening the legal educational program of the Ministry of Justice
regarding copyright protection including cases of online copyright
violations

02
Tracking and Redeeming Criminal Proceeds
Government revised the Act on Gains from Crimes in December 2008 in
order to allow confiscation of gains from crimes such as the violation of
author's economic rights and program copyright (enforced on 20 March
2009) and tried to track and recover gains from copyright violations by
identifying the production, distribution profit, and distribution channels of
illegal copyright works.

Establishment of a Close Cooperative

03

Network with Relevant Agencies

MOJ held approximately 20 working level conferences with both domes-
tic and international agencies including the Ministry of Culture, Sports,
and Tourism, National Police Agency, Korea Copyright Commission, US
Embassy Seoul, and the European Union Chamber of Commerce in Korea,
since April 2008 and it is now discussing plans for the establishment and

Summer 2010 Vol.1, No.1

15
 Establishing of Labor Relations
and Strike Culture
that Respect Laws and Principles

01
Zero Tolerance for Illegal Strike Actions Cooperation and Prevention Network among
03

In Feb. 2010, Korea's MOJ has expanded the application of the
"Sentencing Guidelines for Labor and Collective Offenses" to all
Prosecutors' Offices across Korea (February 2010) and raised the aware-
ness that those who violate the law will be punished accordingly without
exception by enforcing laws in a strict and consistent manner
Relevant Authorities
The MOJ will establish an effective cooperation network through close
consultation among relevant authorities including the Ministry of Labor
and the National Police Agency and develop a firm and consistent com-
mon response strategy among relevant authorities by exchanging infor-
mation and sharing review results of legal principles

Application of Civil and Administrative

02

Sanctions Improved Labor Relations that Respect Laws

04

The Ministry will create a systemic network of support for civil lawsuits
over illegal collective action through close cooperation among relevant
organizations including the Ministry of Justice, Prosecutors' Offices, and
the Korean Government Legal Service and impose administrative sanc-
tions (e.g. suspending subsidy) by conducting thorough investigations on
organizations behind illegal violent strikes and facilitating notices to
supervising authorities
and Principles
The MOJ will enforce laws against unlawful acts committed not only by
labor unions, but also by managements including wage delay, industrial
accidents, and unfair labor practices. In addition, it will provide specific
punishment standards by crime type for unlawful labor practices in the
"Sentencing Guidelines for Labor and Collective Offenses"

Recent Trends of Law & Regulation in Korea

16
Recent Trends of Law& Regulation in Korea |
The Maturing
Korean
Legal Market
ecently, Korea has once again found
R itself on the global radar screen as a
result of events related to North and
South Korea. As Korea and the
world face the challenges presented
by the North's aggression and belligerence, it is
easy to lose sight of the many positive develop-
ments that are taking place in the southern half
of the Korean peninsula that deserve our atten-
tion. While perhaps not an item for the front
pages of the world's newspapers, recent devel-
opments in the Korean legal market certainly are
making an impact of their own.
The Foreign Legal Consultants Act, enacted last
year, sets the foundation for opening the Korean
legal market and a system in which foreign
licensed lawyers and global law firms can work
more proactively to assist their clients to conduct
business in a global economy. It is a positive
development for Korean licensed lawyers, who
continue to improve their English and lawyering
skills to prepare for the market opening, and for
foreign licensed lawyers working in Korea,
whose status has always been a bit fuzzy due to
the lack of a structured legal framework for such
lawyers.
The revamping of the Korean legal education
system and the opening of the first US-style law
schools in 2009 also bring major changes to the
Korean legal market. Previously, the study of
law was an undergraduate endeavor, with those
passing the bar exam attending a two-year train-
ing course at the Judicial Research and Training
Institute, run by the Korean Supreme Court.
Expert Column
David Waters
General Lawyer / Director, IBM Korea
Co-chair, Legal Affairs Committee,
AMCHAM KOREA
Under the new system, we will see greater
diversity, as the aspiring lawyers will study law
at one of 25 law schools nationwide upon com-
pletion of non-law undergraduate studies.
We also see significant developments in the
major Korean law firms. A number of law firms
have undergone changes through reorganiza-
tions or mergers. And while many global law
firms found themselves cutting back the number
of fee earners in recent years, this has created Whereas Korean
an opportunity for Korean law firms to pick up a firms traditionally
large number of talented foreign lawyers inter- focused
ested in relocating to Korea. By infusing them- on domestic matters,
selves with new blood, the Korean law firms are over the past few
rejuvenating.
years,
Another development in recent years has been the major firms have
the increase in outbound legal work. The been developing
"Korean Wave," or hallyu, a term normally used their own outbound
to describe the overseas success of the Korean practices as well,
entertainment industry, could just as easily be focusing on Korean
used to describe the outbound flow of Korean
clients seeking to
investment, and the involvement of Korean law
firms in those transactions. Whereas Korean
invest overseas.
firms traditionally focused on domestic matters, Nearly all of Korea's
over the past few years, the major firms have top law firms now
been developing their own outbound practices as have at
well, focusing on Korean clients seeking to invest least one or more
overseas. Nearly all of Korea's top law firms now international offices
have at least one or more international offices in
in places
places like China and Southeast Asia.
like China and
Let's hope to see more positive news about the Southeast Asia.
Korean peninsula in the future!
Summer 2010 Vol.1, No.1
17
Recent Trends of Law& Regulation in Korea | Immigration Information of Korea for Investors
Information
for Investment in Korea
01
General Information
Eligibility of Investor Visa(D-8)
Persons who are dispatched by a foreign business and stationed in an
FDI company in Korea.
- An essential professional engaged in management or production/
technology of FDI business defined by the Foreign Investment
Promotion Act. (Professionals employed by a business based in Korea
are excluded.)
A person who establishes(or will establish) a venture business in
accordance with the Special Law for the Upbringing of Venture
Business(Article2.2, Paragraph 1 sub-paragraph2, Item C)
- Persons who hold professional skills and secured the Certificate of
Venture Business(or Preliminary Certificate of Venture Business) in
accordance with the Special Law for the Upbringing of Venture
Business( Article 2.2, Paragraph 1, Sub-paragraph 2, Item C)
Necessary Document :
Persons who are subject to the Foreign Investment
Promotion Act(D-8-1)
Application Form for the Certificate for the Confirmation of Visa Issuance
A copy of Invitee's Passport
Resident's ID Card(for Chinese)
Order of Secondment from Headquarters, Certificate of Employment
Statement of Purpose for Invitation
A Copy of Business Registration Certificate, Incorporation Registry.
Certificate of FDI Company Registration
Proof of Operation
- Certificate of Tax Payment or Record of Introduction of Operating Funds
Recent Trends of Law & Regulation in Korea
18
For Investment from China
- Letter of Investment, Statement of Business Plan,
Certificate of Purchased Foreign Currency from a Chinese Bank
For essential professionals of a subsidiary of a financial holding
company,
- Business License of Financial Holding Company, A Letter of Request
for Visa Issuance, A Document showing that the company is a sub-
sidiary fully owned by a financial holding company.
Persons who are subject to the Foreign Investment
Promotion Act(D-8-2)
Certificate of Confirmation of Visa Issuance
A copy of Invitee's Passport
Resident's ID Card(for Chinese)
Statement of Purpose for Invitation
A Copy of Business Registration Certificate, Incorporation Registry.
Certificate of Venture Business or Preliminary Certificate of Venture
Business
Proof of Industrial Property Rights, Other technology and rights.
Incentives for Investors
Entry and Exit Clearance
- Installation and operation of Incheon airport express inspection lane
for Investors
Sojourn Permit
- exemption of various fees for sojourn permit
- Investment of USD 500,000 or more
Maximum period of sojourn granted for an extension will be increased
from 3 to 5 years.
 If a person employs 3 Koreans on a regular employment basis, s/he
may sponsor a housemaid.
A spouse of investor is granted employment permit to the level equiv-
alent to spouses of diplomatic attaches in Korea.
Eased Requirement for Acquiring Permanent Residence Status.
- Investment of USD 2 million or more: employment of 5 or more Koreans
- Investment of USD 500,000 : 3-year residency in Korea, Employment
of 3 or more Koreans
02
Changes for the year of 2010
Change of Requirements for Residence Status(F-2):
Real Estate and other property Investors
Basic Principle
- Foreigners who invest in real estate and other property designated by
the Minister of Justice will be allowed to change their sojourn status
to residence status(F-2). The residence status(F-2) enables a holder to
work in Korea without facing various restrictions.
- Designated Local Area: Jeju Special Self-governing Province
- Designated Types of Property
A accommodation facility with the main purpose of vacation such as a
resort condominium, a vostus, and a summer house located in a develop-
ment zone approved by the governor of Jeju Special Self-governing
Province in accordance with the Special Law for Establishment of Jeju
Special Self-governing Province and Creation of International Free City.
(Facilities only for accommodating tourists such as hotels and motels are
excluded)
- Investment Size: USD 500,000 or more, or KRW 500 million or more
- Eligible Persons: Holders of Short-term Visitor Status(incl. Exemption
of Visa and Visa-Free) who have invested the amount of fund stated
above in the designated types of real estate. (Holders of Visa for
Industrial Trainee(D-3) and Unskilled Workers(E-9, E-10),
Miscellaneous(G-1) are excluded)
Eligibility for Permanent Residence Status(F-5)
- If an investor maintains the invested property for 5 or more years from the
point of investment and does not have disqualifying reasons for sojourn.

03
Contacts and Websites for an FDI Information

Name Major Services Location Contact Website

Korea Immigration immigration management F8 Newcore Outlet , 7, 1345 http://www.

Service organization Byeoryang Commercial immigration.go.kr
and administrative information Street 1gil , Gwacheon city,
Gyeonggi Province

Global Expert and various consultation services 319-2, Sinjeong6-dong, 1345

Investor Support Center for foreing investors incl. Yangcheon-gu, Seoul
of the Seoul stay permit and
Immigration Office investment information.

Invest Korea information on attracting 300-9 Yeomgok-dong, T.02)3460-7545 http://www.

foreign investment Seocho-gu, Seoul investkorea.org

Seoul Global Center lodge application F3, Hanguk Press Building,, T.02)1688-0120 http://www.
of the Seoul City Hall for investor sojourn status 25, Taepyeongro 1ga,, global.seoul.go.kr
and issue various certificates Jung-gu, Seoul

Hi korea information on investment, e-government for foreigner 1345 http://www.

(e-Government for Foreigner) employment, residence, hikorea.go.kr
and other daily living information.

Summer 2010 Vol.1, No.1

19
Recent Trends of Law& Regulation in Korea | Invest Korea
Foreign Investment
Ombudsman System
Office of the Foreign Investment Ombudsman and Grievance Resolution System
Office of the Foreign Investment
01
Ombudsman(KOTRA)
Introduction of Foreign Investment Ombudsman
The Foreign Investment Ombudsman is commissioned from among the
persons of abundant learning and experience in the foreign investment
business for the purpose of supporting the affairs of grievance settle-
ment in foreign-invested companies.
Main responsibilities of the Foreign Investment Ombudsman include 1)
assigning Home Doctors to foreign-invested companies and providing sup-
port in grievance resolution efforts, 2) resolving grievances through cooper-
ation with the government and relevant government agencies and propos-
ing relevant policies, 3) encouraging system improvements and legal
amendments by serving on the Foreign Investment Committee, Foreign
Investment Working Committee, Presidential Council on National
Competitiveness, and Regulatory Reform Committee, 4) inducing reinvest-
ment by foreign-invested companies, and 5) taking preemptive measures to
prevent future grievances and improving Korea's investment environment.
Strengths of Korea's Foreign Investment Ombudsman System
In Korea, no case of Investor-State Dispute (ISD) has ever been filed,
thanks to the operation of the Foreign Investment Ombudsman system.
ISD experts participating in the APEC ISD workshop held in Washington
D.C. in November 2008 assessed that Korea maintains a sound ISD envi-
ronment through the Foreign Investment Ombudsman system and griev-
ance settlement body.
The Foreign Investment Ombudsman system not only provides after-
care services for foreign investors by resolving their grievances, but also
serves to prevent future grievances from arising by improving Korea's
investment environment.
Recent Trends of Law & Regulation in Korea
20
In order to enhance the quality and effectiveness of the aftercare serv-
ices, the Home Doctors, experts in diverse fields, provide foreign-invest-
ed companies with on-site support and assistance, based on the know-
how and expertise accumulated over the past 10 years.
One-on-one assistance provided by the Home Doctors allows foreign-
invested companies to practically enjoy one-stop services, maximizing the
effectiveness of on-site assistance. The Home Doctors also earn the trust
of foreign-investors by keeping any sensitive information concerning
grievances strictly confidential. The Home Doctors also play an important
role in bridging government bodies, especially those responsible for grant-
ing permissions and licenses, and foreign-invested companies that often
have a tendency to avoid direct contact with the government.
Given the outstanding achievements of the Office of the Foreign Investment
Ombudsman, many international organizations, such as the UNCTAD-WAIPA,
Indonesian Investment Coordinating Board (BKPM), and the World Bank visit-
ed Korea to benchmark the Foreign Investment Ombudsman system.
02
Grievance Settlement Body
Definition
The grievance settlement body was established on October 26, 1999
upon Article 15(8) of the Foreign Investment Promotion Act to improve
Korea's investment environment by eliminating obstacles to the business
operation of foreign-invested companies and resolving their grievances.
Assistance Offered by Grievance Settlement Body
When a foreign-invested company files a grievance, the grievance set-
tlement body, headed by the Foreign Investment Ombudsman, assigns one
of the Home Doctors, experts in a variety of fields including finance, taxa-
 Strengths of Korea's Foreign Investment Ombudsman System

Credibility Expertise Speed

·Civilian Status ·Experts with various expertise ·One-on-one, one-stop services
·Friendly, objective approach ·Know-how and database ·Ombudsman's easy access
·Client-oriented assistance accumulated over 10 years to government

Investor-State Dispute (ISD) - Free Environment

tion, law, construction, accounting, and IT to the filing company to provide
one-on-one assistance in resolving the grievance. In addition to offering
advice and consultations on simple management issues, the Home Doctors
also actively seek to help resolve more complicated legal and administra-
tive issues through on-site visits, e-mail, and other various means on-line.
In addition to handling grievances filed by individual companies, the
grievance settlement body organizes the Job Fair for Foreign-invested
Companies, the CEO Forum for Foreign-invested Companies, and various
meetings with foreign investors as part of an effort to address difficulties
more commonly experienced by foreign-invested companies.
Grievance Resolution Process
Once a grievance is filed by a foreign-invested company, it is first
examined by a Home Doctor before resolutions to the problem are
sought under the direction of the Foreign Investment Ombudsman. In
case that resolving the grievance requires an improvement of a system or
administrative intervention, the Home Doctor discusses the grievance
raised by the foreign investor with relevant government agencies. After
these discussions and the Foreign Investment Ombudsman's final review
of the issue, recommendations for the resolution of the grievance are for-
mally submitted to the relevant government bodies.

Grievance Resolution Process

Foreign Chambers of
Identification by OIO Foreign-invested Companies
Commerce in Korea
Investment Environment Survey
Major country case studies ·Home Doctor consultation
·Meetings with AMCHAM,
Identification of problems ·Telephone / fax / on-line
EUCCK, SJC, etc.
Drawing of solutions ·Meetings

Investigation into raised issuces, internal discussion, assignment of Home Doctors

Bringing issues to the

attention of government
Visits to concerned Collaboration with
through Presidential
companies relevant agencies
Council on National
Competitiveness, etc.
Follow-up Reinvestigation

Resolution of grievance through administrative intervention/system improvement

Improvement of investment environment Global standardization

Summer 2010 Vol.1, No.1

21
Recent Trends of Law& Regulation in Korea | Introduction of the Korean Legal System
Korean Legislative System
and Procedures
01
Korean Legislative System and Procedures
The Korean legislative system consists of the Constitution as the para-
mount law, Acts to realize the constitutional notions, and administrative
legislation including Presidential Decrees, Ordinances of the Prime
Minister, Ordinances of Ministries and so forth to effectively implement
the Acts. Since the Acts and subordinate statutes form a certain hierar-
chy, subordinate statutes that are enacted under powers delegated by
Acts or are enacted for the purpose of enforcing Acts are not permitted
to contain details in conflict with such Acts.
For cases on whether subordinate statutes are in conflict with Acts,
which are raised in the course of enforcing such Acts, the Adjudication
on the Constitutionality of Acts and the Constitutional Complaints of the
Constitutional Court address on whether any Act is in violation of the
Constitution. Furthermore, the Supreme Court holds the authority to
make a final review on whether any order, rule, or disposition is in viola-
tion of the Constitution or Acts.
02
Categories of Acts & Subordinate Statues
Constitution
The Constitution, as the paramount law, stipulates fundamental matters
Recent Trends of Law & Regulation in Korea
22
The National Assembly of the Republic of Korea
pertaining to the rights and obligations of the people, fundamental struc-
tures of the Government, economic order, management of elections and
so forth. The Constitution is the standard for the legislation and amend-
ment of Acts and subordinate statutes of the Republic of Korea. If an Act,
Presidential Decree or, etc. are in violation of the Constitution, the
Constitutional Court makes a decision on unconstitutionality of the rele-
vant Act or Presidential Decree by referring to the provisons and pream-
ble of the Constitution and interpreting the basic constitutional notions.
Acts·Emergency Executive Orders·Emergency Financial
and Economic Executive Orders
Acts are the forms of legal norms stipulated by the legislative principles
of the National Assembly and prescribe the principle of legality, principle
of legislated taxation, requirements for acquisition of Korean nationality,
expropriation and indemnity of property rights, establishment of
Ministries and categories of local governments, etc.
All of the rights and freedoms of the people may be restricted by Acts in
cases where it is deemed necessary to do so for the purpose of safe-
guarding national security and maintaining public order or public welfare,
and even if such rights and freedoms are restricted, essential elements
of such rights and freedoms are protected from being infringed on.
Emergency executive orders and emergency financial and economic
executive orders are issued by the President in the event of any national
emergency. They have the effect of Acts only when the President obtains
such approval from the National Assembly.
International Treaties & International Laws
International treaties are agreements concluded in writing among
nations while international laws are international customs and the
enforcement power of which is generally recognized by the international
community. The Constitution of the Republic of Korea stipulates the
observance of international law, and prescribes that treaties concluded
and promulgated under the Constitution and international laws generally
recognized have the same effect as those of domestic laws.
"The same effect as those of domestic laws" refers to the fact that any
treaties or international laws falling under any domestic Acts or subordi-
nate statues have the same effect as those of the relevant domestic Acts
or subordinate statutes respectively. In cases where the Government
concludes any treaty in conflict with domestic Acts, the Government is
required to seek consent from the National Assembly. Some treaties
require legislative measures for enactment as domestic Acts in order to
be implemented.
Orders - Administrative Legislation
Orders refer to all of subordinate statutes (excluding any treaties, inter-
national laws, and municipal ordinances and rules) prescribed by admin-
istrative power. Administrative legislation includes Presidential Decrees,
Ordinances of the Prime Minister and Ministries, and administrative
rules. Presidential Decrees issued by the President who is the head of
Hierarchy of Acts & Subordinate Statutes
Constitution
Acts·Emergency
Executive Orders·
Emergency Financial
and Economic
Executive Orders
Presidential Decrees
Ordinances of the Prime Minister· Ordinances of Ministries
Administrative Rules (Directives·
Regulations·Public Notices·
Guidelines, etc..)
the Executive, consist of delegated orders and execution orders. The
jurisdiction of such orders extends over all administrative affairs under
the jurisdiction of the Executive.
The Ordinances of the Prime Minister are enacted with respect to mat-
ters under the jurisdiction of the Ministry of Planning and Budget, the
Ministry of Government Legislation, the Ministry of Patriots and Veterans
Affairs, etc. that are administrative agencies under the direct supervision
of the Prime Minister among the Ministries of the Executive. Ordinances
of the Prime Minister are generally viewed to stand on par with
Ordinances of Ministries in their hierarchy.
Internal Rules of Constitutional Institutions
The National Assembly, Supreme Court, Constitutional Court, or National
Election Commission may lay down their internal rules to the extent of
not in conflict with Acts.
Ordinances and Rules of Local Governments
The Constitution guarantees self-governance of local governments. Local
governments exercise autonomous legislative powers to lay down local
Ordinances and Rules. Municipal Ordinances are laid down after going
through deliberation thereon by local councils. Municipal Rules are laid
down by the heads of local governments.
Treaties
·International Law
Rules of the National Assembly
·Rules of the Supreme Court
Rules of the Constitutional Court
Rules of the National Election Commission
Municipal Ordinances
·Municipal Rules of Local Governments
Summer 2010 Vol.1, No.1
23
 The Constitution
01
History
The Constitution of the Republic of Korea which was passed in the
National Assembly on 12 July 1948 promulgated five days later has
gone through many changes in the process of being amended nine times
so far. The present Constitution is the ninth amendment of the
Constitution (revised on Oct. 29, 1987), and is characterized by introduc-
tion of a direct presidential election system and establishment of the
Constitutional Court.
02
The Components and Content
of the Current Constitution
The Constitution of the Republic of Korea consists of a Preamble, ten
Chapters and 130 Articles of the main body/supplementary provisions,
and six Articles of the Addenda. The Preamble illustrates the historical
establishment as well as the basic ideals upheld by the Constitution. The
main body of the Constitution provides the basic rights and responsibili-
Recent Trends of Law & Regulation in Korea
24
ties of a State in ten chapters: Chapter 1, General Provisions; Chapter 2,
Rights and Duties of Citizens; Chapter 3, the National Assembly; Chapter
4, the Executive; Chapter 5, the Courts; Chapter 6, the Constitutional
Court; Chapter 7, Election Management; Chapter 8, Local Autonomy;
Chapter 9, the Economy; and Chapter 10, Amendments to the
Constitution. The specific details of the chapters are as follows:
A. Preamble and General Provisions
The Preamble of the Constitution not only states the traditional inheri-
tance of the Provisional Government of the Republic of Korea, but also
declares as indices of a new national order the principle of popular sov-
ereignty, national democratic reform and the reinforcement of a liberal
democratic order, succession of the democratic ideals seen in the April
19 Revolution (indirect expression of resistance), realization of a just wel-
fare state, strife for nationalism, and the pursuit of peaceful unification
and world peace.
The General Provisions declare the form of state as a democratic republic
and the principle of popular sovereignty (Article 1), and enact a provision
reinforcing the duty of the State to protect citizens residing abroad
(Article 1.2). In Article 3, it is indicated that "the territory of the Republic
of Korea shall consist of the Korean peninsula and its adjacent islands.
In Article 4, the provision "the Republic of Korea shall
seek unification and shall formulate and carry out a policy
of peaceful unification based on the principles of freedom
and democracy" was added. In Article 5.2, the mainte-
nance of political neutrality of the Armed Forces are men-
tioned for the first time in addition to the duty of the
Armed Forces to guarantee national security and to
defend the land. With regard to political parties, it is pre-
scribed that not only the organization and the activities,
but also their objectives must be democratic (Article 8.2),
and if the purposes or the activities of a political party are
contrary to the fundamental democratic order, the politi-
cal party shall be dissolved in accordance with the deci-
sion of the Constitutional Court (Article 8.4).
B. Fundamental Rights
The distinct characteristics of the chapters on rights and
duties of citizens are the expansion of procedural guaran-
tees to reinforce the freedom of a person to the maxi-
mum, the improved freedom of expression, and new
types of social fundamental rights.
First, it assures human dignity, respect for values, the
right to pursue happiness and the fundamental and invio-
lable human rights of individuals (Article 10). It also pro-
hibits violation of the essential aspects of freedoms and
rights (Article 37.2), thereby specifying that fundamental
human rights are natural or inherent rights .
Moreover, right to equality is provided (Article 11) so that
all citizens shall be equal before the law and shall not be
discriminated without a just or reasonable cause.
Fundamental rights with regard to civil liberties are stipu-
lated as personal liberty (Article 12); freedom of resi-
dence and the right to move at will (Article 14); freedom
of occupation (Article 15); freedom of privacy in residence
and correspondence (Articles 16 to 18); freedom of con-
science and religion (Articles 19 and 20); freedom of
speech, press, assembly and association (Articles 21 and
22); freedom of learning and the arts (Article 22); guaran-
tee of the right of property (Article 23), etc. Also, those
freedoms are not enumerated in the Constitution shall not
be neglected(Article 37.1).
Fundamental rights pertaining to the right to claim
include right to petition (Article 26), right to be tried
(Article 27); right to claim criminal indemnity (Article
28);right to claim for compensation of the state right to
claim for compensation of loss (Article23.3); right to claim
for aid for victims of crimes (Article 30); right to request
judgment on the constitutionality of a law (Article 107.1);
and the right to claim adjudication on a constitutional
appeal(Article 111.1).
The Constitution The article regarding political fundamental rights provides
of the Republic for the right to vote and the right to hold a public office.
of Korea which The age of the voters is to be prescribed by the law
was passed in (Article 24).
the National Social fundamental rights consist of the right to receive
education (Article 31); right to work and to receive mini-
Assembly mum wage (Article 32); right to independent association,
on 12 July 1948 collective bargaining, and collective action (Article 33);
and promulgated right to be entitled to a life worthy of human beings
five days later (Article 34.1); right to be entitled to social security and
has gone through welfare (Article 34.2 to 34.6); right to a healthy and pleas-
many changes in ant environment (Article 35); and the right of all citizens
to have their health protected by the State (Article 36.3).
the process of
being amended C. Fundamental Structure of Goverment
nine times so far. With regard to the fundamental structure of goverment,
check and balance is maintained by reasonably adjusting
the authority of the President, reinforcing the authority of
the National Assembly and activating its function, and by
newly implementing the institutional system for the inde-
pendence of judicial power.
First, concerning the National Assembly (1) the convening
requirements of extraordinary sessions of the National
Assembly have been eased from one third to one fourth of
the total members, the period of regular sessions have
been extended from 90 days to 100 days, and the restrict-
ing regulations on the yearly number of sessions have been
deleted (Article 47) (2) In the case of two or more candi-
dates receiving the same largest number of votes in the
Presidential election, the National Assembly will conduct
an indirect election (Article 67.2) (3) In order to allow the
National Assembly to inspect the affairs of state or investi-
gate specific matters of state affairs, the right to inspect
and investigate state administration has been reinstated
(Article 61) (4) The right to vote on the dismissal of the
Prime Minister or a State Council member from office has
changed to the right to recommend dismissal (Article 63).
Second, concerning the President, (1) in 1980, the method
of Presidential election changed from the indirect elec-
tion system by an electoral college to the direct election
system by the people, to guarantee the people's right to
vote in selecting their government. If and when there is
only one presidential candidate, at least one third of the
total eligible votes is needed to become elected presi-
dent(Article 67.3). However, the lack of a provision
regarding the necessary ratio of votes while adopting the
direct election system may be considered a defect of the
legislation (2) The provision which stated that a minimum
Summer 2010 Vol.1, No.1
25
five years of residence in Korea is required in order to be
eligible for the election stipulated in the Constitution of
1980 has been deleted. In the case of vacancy occuring in
Presidential office, a successor shall be elected within
sixty days (Article 68) (3) The term of office of the
President shall be five years, and the President shall not
be reelected so as to prevent the harmful consequences
of the long-term seizure of power by one person and to
build the foundations for a peaceful transition of govern-
ment (Article 70) (4) The rights of the president to take
urgent measures and to dissolve the National Assembly
have been deleted, but at the same time, the rights to
issue urgent orders, to take financial and economic
actions, and to issue orders have been newly added in
the case of national emergency so as to reasonably
adjust the authority of the President (Article 76) (5) The
President's consultative body, the Advisory Council on
State Affairs, is renamed as the Advisory Council of Elder
Statesmen and the Advisory Council on Democratic &
Peaceful Unification to the National Unification Advisory
Council (Articles 90 and 92). The National Economic
Advisory Council is newly established (Article 93).
Third, concerning the court, (1) the Chief Justice of the
Supreme Court shall be appointed by the President with
the consent of the National Assembly. The Supreme
Court Justices shall be appointed by the President with
the recommendation of the Chief Justice and the consent
Recent Trends of Law & Regulation in Korea
26
The Supreme Court of the National Assembly. Judges other than the Chief
Justice and the Supreme Court Justices shall be appoint-
Justices shall be
ed by the Chief Justice with the consent of the
appointed by the Conference of Supreme Court Justices (Article 104) (2) No
President with the judge shall be removed from office except by impeach-
recommendation of ment, or a sentence including imprisonment without
the Chief Justice forced labor or heavier punishment (Article 106.1). Such
and the consent of improvements in the appointment procedures and rein-
forcements in the guarantee of status contribute to
the National
strengthening the independence of the judicial branch.
Assembly. Fourth, concerning the Constitutional Court, (1) the
Constitutional Committee from 1980 is to be replaced by
the Constitutional Court composed of nine Justices. It
shall have to have jurisdiction over the constitutionality of
a law, impeachment, dissolution of a political party, com-
petence disputes, and constitutional complaints (Article
111.1) so as to revitalize the Constitutional Court system,
to strengthen legal guarantee of fundamental rights, and
to seek a legal solution to constitutional disputes.
Finally, concerning the form of government, the Prime
Minister shall assist the President and shall direct the
Executive Ministries under order of the President (Article
86.2) This form of the Prime Minister is rarely in a presi-
dential system of government. The Prime Minister is a
public official who is appointed by the President. He/She
directs the Executive Ministries under order of the
President, and thus differs entirely in character from the
The Constitutional Court of Korea
Prime Minister in a parliamentary system who is elected
by legislature and is the actual head of the Executive
Branch. Each executive Ministry executes administrative
power that is invested in the President and the Executive
Branch. They are administrative offices, since they are
central administrative bodies that execute policies decid-
ed by the president through deliberation of the State
Council and other matters pertaining to the Executive
Branch. For the President is elected by the people and
executes executive policies among the nation's policies
through the Executive Ministries, in relation to the
President, the Executive Ministries are in direction and
submission to the order of the president.
D. Local Autonomy
The local autonomy, is defined in Chapter 8 (Articles 117
and 118). There are no reservation clauses in the addenda
regarding the local government system like the
Constitution of 1980. The local government system intends
to realize "grassroots democracy" and make the functional
control of power effective. The local goverment adminis-
ters the residents' property and welfare-related issues.
The residents directly vote for the regional congress, a leg-
islative organ, and the president of the local government,
an executive organ, in order to establish regulations on
local autonomy within the boundaries of the statute.
E. Economic Order
First, with regard to the economic order, it is to be based
on the capitalistic free market economy that respects free-
dom and creativity of individuals and enterprises. At the
same time, the order intends to democratize the economy
by maintain the balanced growth of the local economy,
ensuring proper distribution of income, and prevent abuse
of economic power. Regulations and adjustments may be
enforced to realize these purposes (Article 119). Thus, as a
whole, it aims to create a social market economy.
Second, the basic economic policies include the follow-
ing: (1) based on the land-to-the-tillers principle, tenant
farming shall be prohibited (Article 121.1), (2) the State
may impose, under the conditions as prescribed by Act,
restrictions or obligations necessary for the efficient and
balanced utilization, development, and preservation of
the land of the nation that is the basis for the productive
activities and daily lives of all citizens (Article 122), (3) the
State shall establish and implement a plan to comprehen-
sively develop and support the farm and fishing communi-
ties in order to protect and foster agriculture and fisheries
(Article 123.1), (4) the State shall have the duty to foster
Regulations and regional economies to ensure the balanced development
adjustments may be of all regions (Article 123.2), (5) the State shall endeavor
enforced to realize these to stabilize the prices of agricultural and fishery products
purposes (Article 119).
Thus, as a whole, it aims by maintaining an equilibrium between demand and sup-
to create a social market ply of such products and improving their marketing and
economy.
distribution systems (Article 123.4), (6) the State shall fos-
ter organizations founded on the spirit of self-help among
farmers, fishermen and businessmen engaged in small
and medium industry, and shall guarantee their independ-
ent activities and development (Article 123.5), (7) the
State shall strive to develop the national economy by
encouraging innovation in science and technology, and by
developing information and human resources (Article
127.1), (8) the state shall install the National Economic
Advisory Council (Article 93), etc. and thus these policies
contribute to promoting social justice in the economic
There are no sector and the realization of economic democratization.
reservation clauses
in the addenda F. Constitutional Amendments
Whether they are proposed by a member of the
regarding the local National Assembly or the President, the proposed
government system amendments to the Constitution shall be subject to a
like the Constitution national referendum after the decision is made by the
of 1980. The local National Assembly (Article 130.2), making amendments
government system difficult. Also, amendments to the Constitution for the
intends to realize extension of the President's term of office or for the
reelection of the President are not applicable to the
"grassroots democracy"
President in office at the time of the amendment's pro-
and make the posal (Article 128.2) so as to institutionalize the peace-
functional control of ful change of government and the prevention of a pro-
power effective. longed one-person rule.
Summer 2010 Vol.1, No.1
27
Recent Trends of Law& Regulation in Korea | Appendix

Government Departments, Law Schools, Public Enterprises

The Board of Audit and Inspection of Korea Ministry of Public Administration Statistics Korea
http://english.bai.go.kr/ and Security http://www.kostat.go.kr/eng
82-2-2011-2114 http://www.mopas.go.kr/gpms/ns/mogaha/user/n 82-2-2012-9114
olayout/main/english/userEngMainDisplay.action
National Intelligence Service 82-2-2100-3399 Supreme Prosecutor's Office
http://eng.nis.go.kr/app/main/index http://www.spo.go.kr/user.tdf?a=user.renewal.mai
82-111 Ministry of Culture, Sports and Tourism n.MainApp&lang=eng
http://www.mcst.go.kr/english/index.jsp 82-2-3480-2337
Korea Communications Commission 82-2-3704-9114
http://eng.kcc.go.kr/user/ehpMain.do Korean National Police Agency
82-2-750-1114 Ministry of Food, Agriculture, Forestry and http://www.police.go.kr/eng/index.jsp
Fisheries 82-1566-0112
Ministry of Government Legislation http://english.mifaff.go.kr/main.tdf
http://www.moleg.go.kr/english/ 82-2-503-7200 Small & Medium Business Administration
82-2-2100-2520 http://eng.smba.go.kr/main.jsp
Ministry of Knowledge Economy 82-42-481-4365/4474
Fair Trade Commission http://www.mke.go.kr/language/eng/index.jsp
http://eng.ftc.go.kr/ 82-2-1577-0900 Korea Intellectual Property Office
82-2-2023-4238~4248 http://www.kipo.go.kr/en/
Ministry of Health and Welfare 82-42-481-8637
Financial Services Commission http://www.mw.go.kr/front/index.jsp
http://www.fsc.go.kr/eng/index.jsp 82-129 Korea Food & Drug Administration
82-2-2156-8000 http://eng.kfda.go.kr/index.php
Ministry of Environment 82-1577-1255
Anti-Corruption & Civil Rights Commission http://eng.me.go.kr/
http://www.acrc.go.kr/eng_index.html 82-2-2110-6546 Korea Metereological Administration
82-1588-1577 http://web.kma.go.kr/eng/index.jsp
Ministry of Labor 82-2-2181-0900
Ministry of Strategy and Finance http://www.molab.go.kr/english/main.jsp
http://english.mosf.go.kr/ 82-31-345-5000 Law Korea
82-2-2150-2455 http://www.lawkorea.com/
Ministry of Gender Equality and Family 82-2-6099-3800
Ministry of Education, Science, and http://english.mogef.go.kr/index.jsp
Technology 82-2-2075-4500 National Digital Library
http://english.mest.go.kr/ http://www.dlibrary.go.kr/
82-2-6222-6060 Ministry of Land, Transport, and 82-2-535-4142
Maritime Affairs
Ministry of Foreign Affars and Trade http://english.mltm.go.kr/intro.do National Assembly Library
http://www.mofat.go.kr/english/main/index.jsp?la 82-2-1599-0001 http://www.nanet.go.kr/english/
ng=eng 82-2-788-4211
82-2-2100-2114 National Tax Service
http://www.nts.go.kr/eng/ The Supreme Court of Korea
Ministry of Unification 126 http://eng.scourt.go.kr/eng/main/Main.work
http://www.unikorea.go.kr/eng/ 1588-0560 / 82-2-2076-5711 82-2-3480-1100
82-2-2100-5747
Korea Customs Service Supreme Court Library of Korea
Ministry of Justice http://english.customs.go.kr/ http://library.scourt.go.kr/jsp/index.html
http://www.moj.go.kr/HP/ENG/ 82-42-472-2120 82-2-3480-1551~2
82-2-503-7023
Public Procurement Service Constitutional Court of Korea
Ministry of National Defense http://www.pps.go.kr/english/ http://english.ccourt.go.kr/
http://www.mnd.go.kr/mndEng_2009/main/index.jsp 82-42-481-4114 82-2-708-3460
82-2-795-0071

Recent Trends of Law & Regulation in Korea

28
Judicial Research & Training Institute Foreign Investment Promotion Act-Ministry Specific Areas of Legal Counseling
http://jrti.scourt.go.kr/english/about_jrti.asp?flag=0 of Strategy and Finance http://www.yeslaw.com/
82-31-920-3114 http://english.mosf.go.kr/ 82-2-576-8620
82-2-2150-2455
Supreme Prosecutor's Office Korea Agro-Fisheries Trade Corporation
http://www.spo.go.kr/user.tdf?a=user.renewal.mai Immitration Law-Ministry of Justice http://www.at.or.kr/tp0500/tp0506/se060100/se
n.MainApp&lang=eng http://www.moj.go.kr/HP/ENG/index.do 060101/se060101.html
82-2-3480-2337 82-2-503-7023 82-2-6300-1114

Ministry of Government Legislation Intellectual Property Law-Korea Intellectual Korea Broadcasting System
http://www.moleg.go.kr/english/ Property Office http://english.kbs.co.kr/
82-2-2100-2520 http://www.kipo.go.kr/en/ 82-2-781-1000
82-42-481-8637
Korean Bar Association Korea Electric Power Corporation
http://www.koreanbar.or.kr/eng/01_01.asp Labor Law-Ministry of Labor http://www.kepco.co.kr/eng/
82-2-3476-4000~6 http://www.molab.go.kr/english/main.jsp 82-2-3456-3114
82-31-345-5000
The Korean Commercial Arbitration Board Korea Tourism Organization
http://www.kcab.or.kr/servlet/kcab_adm/member Maritime Law-Ministry of Land, Transport, http://www.visitkorea.or.kr/
auth/5000 and Maritime Affairs 82-2-7299-600
82-2-551-2000~19 http://www.molab.go.kr/english/main.jsp
82-2-1599-0001 Korea Trade-Investment Promotion Agency
Comparative Policy Law-APEC http://english.kotra.or.kr/wps/portal/dken
http://www.apeccp.org.tw/doc/Korea.html Network of Committed Social Workers 82-2-3460-7114
- http://www.welfare.or.kr/
- Korea Expressway Corporation
The National Assembly of the Republic http://www.ex.co.kr/english/company/ceo/com_
of Korea Korea Association of Social Workers ceo.jsp
http://korea.assembly.go.kr/index.jsp http://www.welfare.net/site/Index.action 82-1588-2504
82-2-788-2114 82-2-786-0845~7
Korea Land & Housing Corporation
Consumer Protection Act-Korea Global Legal Information Network http://world.lh.or.kr/
Consumer Agency http://www.nanet.go.kr/glin/index.jsp 82-31-738-7114
http://www.kca.go.kr/index.jsp 82-2-788-4211
82-1372 Korea Minting &
Korean Library Information System Network Security Printing Corporation
Economic Law-Korea Legislation Research (Korean Library Information System) http://english.komsco.com/
Institute http://www.nl.go.kr/kolisnet/index.php 82-2-710-5230~382-2-564-0384
http://www.klri.re.kr/index.jsp
82-2-579-0090 Korea Law Service Center Korea Railroad
http://law.go.kr/LSW/main.html# http://info.korail.com/2007/eng/eng_index.jsp
Environmental Law-Ministry of Environment 82-2-2100-2580 82-1544-7788
http://eng.me.go.kr/main.do
82-2-2110-6546 VOD Service for Conferences Korea Appraisal Board
http://na6500.assembly.go.kr/ http://www.kab.co.kr/
Foreign Exchange Transactions Act 82-2-788-2298 82-2-2189-8000
Specialized Institute for Domestic Foreign
Direct Investment (Invest Korea) Online Legal Information Service Korea Resources Corporation
http://www.investkorea.org/ http://www.netlaw.co.kr/ http://www.kores.or.kr/
82-2-3460-7545 82-2-326-2277 82-2-840-5600

Summer 2010 Vol.1, No.1

29
Incheon International Airport National Research Foundation of Korea Yonsei University
http://www.airport.kr/eng/ http://www.nrf.go.kr/htm/main/main.jsp http://lawschool.yonsei.ac.kr/eng/index.asp
82-32-741-0114 82-2-3460-5500 82-2-2123-3801

Korea Housing Guarantee Co., Ltd. Hanyang University Ajou University

http://www.khgc.co.kr/khgchp/en/en000000.jsp http://www.hanyang.ac.kr/english/ http://lawschool.ajou.ac.kr/
82-2-3771-6300~2 82-2-2220-0114 82-31-219-1667,1539

Korea Gas Corporation Hanguk University of Foreign Studies Sungkyunkwan University

http://www.kogas.or.kr/kogas_eng/00_main/main.jsp http://law.hufs.ac.kr/ http://www.sls.ac.kr/
82-1588-1604 82-2-2173-2461~2 82-2-760-0923

Korea National Oil Corporation Chungbuk National University University of Seoul

http://www.knoc.co.kr/ENG/main.jsp http://lawschool.cbnu.ac.kr/eng/ http://english.uos.ac.kr/
82-31-380-2114 82-43-261-3172 82-2-2210-2114

Korea Rural Corporation Chungnam National University Seoul National University

http://www.ekr.or.kr/ekr/eng/index.jsp http://law.cnu.ac.kr/ http://law.snu.ac.kr/english/index.asp
82-31-420-3114 82-42-821-5814 82-2-880-9160

Korea District Heating Corporation Chung-Ang University Sogang University

http://www.kdhc.co.kr/eng/ http://law.cau.ac.kr/school/index.asp http://lawschool.sogang.ac.kr/
82-31-780-4114 82-2-820-5423~4 82-2-705-7833

Korea Water Resources Corporation Jeju National University Pusan National University
http://english.kwater.or.kr/ http://lawschool.jejunu.ac.kr/ http://law.pusan.ac.kr/
82-42-629-3114 82-64-754-2991~2 82-51-510-1574~5

Korea Transportation Safety Authority Chonbuk National University Dong-A University

http://eng.ts2020.kr/ http://lawschool.chonbuk.ac.kr/ http://cms.donga.ac.kr/user/law/
82-1577-0990 82-63-270-2661 82-51-200-8581~2

Korea Rail Network Authority Chonnam National University Korea University

http://www.kr.or.kr/english/ http://lawschool.chonnam.ac.kr/ http://www.korealawschool.com/eng/overview.asp
82-1577-7270 82-62-530-2206~8 82-2-3290-1427,1428

Korea Infrastructure Safety & Inha University Kyung Hee University

Technology Corporation http://ils.inha.ac.kr/ http://www.khls.ac.kr/
http://www.kistec.or.kr/english/main.html 82-32-860-7917 82-2-961-9218~9
82-1599-4114
Ewha Womans University Kyung Pook National University
Korea Container Terminal Authority http://law.ewha.ac.kr/ http://lawschool.knu.ac.kr/english/01.htm
http://www.kca.or.kr/en/index.jsp 82-2-3277-2733~4 82-53-950-5456,5466
82-61-797-4300
Wonkwang University Konkuk University
Korea Ship Safety Technology Authority http://lawschool.wonkwang.ac.kr/ http://lawschool.konkuk.ac.kr/
http://www.kst.or.kr/eng/main/ma_main.jsp 82-63-850-5082~5 82-2-450-3592
82-32-260-2241~2
Yeungnam University Kangwon National University
Road Traffic Authority http://lawschool.yu.ac.kr/index.jsp http://law.kangwon.ac.kr/
http://eng.rota.or.kr/Eng/Main/main.jsp 82-53-810-2691~2 82-33-250-6503,6510
82-2-2230-6114

Recent Trends of Law & Regulation in Korea

30
 Emblem
This emblem symbolizes that Ministry of
Justice is the leading state authority
which promotes liberty, democracy,
equality, justice and respect for humanity
and achieves prosperity for the nation
through fair and transparent enforce-
ment of law. The emblem is made up of
a person holding a scale, three pillars
that support the scale and flower with
five petals.

Symbolize that the Ministry of Justice is

the cornerstone for the safeguard of law
and order, the protection of human rights
and the prosperity of the nation.

Stands for fair and equal enforcement of

law and the body of law.

One flower with five petals : The flower

as a whole symbolize prosperity, growth
and vitality of the nation and each petal
symbolizes liberty, democracy, equality,
justice and respect for humanity.

The Ministry of Justice Republic of Korea

 Recent Trends of Law & Regulation in Korea
Focusing on Business and Investment

MINISTRY OF JUSTICE REPUBLIC OF KOREA

Ministry of Justice,
Goverment Complex Gwacheon,
88, Gwanmoonro, Gwacheon-si, Gyeonggi-do,
427-720, Republic of Korea

TEL: 82-2-2110-3661, FAX: 82-2-504-1378

ildhd@moj.go.kr, www.moj.go.kr