Global Law Experts top search results to help tackle law in South Korea

In South Korea, a Jusik Hoesa (stock company) is a joint-stock company allowing shares to be publicly or privately held, suitable for large businesses and investors, with strict governance and disclosure rules. A Yuhan Hoesa (limited company) is simpler, privately held, limits liability to contributions, and is easier to set up, ideal for small to medium enterprises.

In South Korea, divorce by agreement (Hyeobui Ihon) occurs when both spouses mutually consent to end their marriage. They must submit a joint application to the local family court or district office, agreeing on issues like child custody, property division, and alimony. Once approved, the divorce is legally registered, finalizing the dissolution without litigation.

Buying real estate in South Korea involves selecting a property, signing a sales contract, and paying a deposit (usually 10%). Foreigners must file a report with the local government under the Foreigner’s Land Acquisition Act and register the purchase with the court registry. Buyers also pay acquisition, registration, and property taxes. Legal due diligence is recommended to avoid risks.

Civil lawsuits in South Korea begin when the plaintiff files a complaint with the court. The defendant responds, and the court holds hearings where both sides present evidence. Judges play an active role in examining facts and encouraging settlement. If unresolved, a judgment is issued, which can be appealed. The process is document-heavy, formal, and designed for efficiency and fairness.

In South Korea, suspects have key rights under the Constitution and Criminal Procedure Act: the right to remain silent, to be informed of charges, to legal counsel during questioning, to apply for bail, and to be free from unlawful arrest or detention. They must be brought before a judge within 48 hours, and confessions obtained by coercion are inadmissible in court.

South Korea’s tax system is based on residence and source. Residents are taxed on worldwide income, while non-residents pay only on Korean-sourced income. Main taxes include income tax (progressive up to 45%), corporate tax, VAT (10%), and property taxes. Employers withhold income tax, while individuals file annual returns. Foreigners may get exemptions or reduced rates under tax treaties.

M&A deals in South Korea involving foreign firms must comply with the Foreign Investment Promotion Act and Commercial Code. Foreign buyers must file reports with authorities, especially if acquiring 10%+ of shares. Certain sectors face restrictions for national security or public interest. The Fair Trade Commission may review for antitrust issues. Regulatory approval is often required before closing.

Key South Korean labor laws include the Labor Standards Act (sets working hours, overtime, rest, and dismissal rules), Minimum Wage Act, Industrial Safety and Health Act, and Employment Insurance Act. Employers must provide written contracts, ensure equal treatment, contribute to social insurance, and comply with rules on severance pay, maternity leave, and worker protections against unfair dismissal.

If arrested in South Korea, a foreigner should remain calm, request a lawyer, and exercise the right to remain silent. They must be informed of charges and brought before a judge within 48 hours. They should contact their embassy for assistance and interpretation. Legal counsel is vital since trials are in Korean and confessions under coercion are inadmissible in court.