Doing Business in Korea
Seven things to know
before doing business in Korea.
Familiar commercial situations can have different legal consequences. These are seven points worth discussing before you commit.
01Civil & criminal lawCan a commercial dispute in Korea also become a criminal matter?
It can, depending on the facts. Some commercial disputes in Korea may give rise to criminal allegations as well as civil claims. An early assessment should consider both dimensions, the evidence available and the implications for negotiations and business operations.
Practical considerationAssess civil exposure and potential criminal issues together.
02Commercial contractsWhat should a contract with a Korean business cover?
Foreign businesses may encounter short-form agreements that leave important issues unstated. Before signing, address each party’s obligations, liability, remedies, governing law and dispute resolution. Detailed provisions can help align expectations with a Korean counterparty and reduce uncertainty if the relationship changes.
Practical considerationMake responsibilities and remedies explicit before signing.
03Regulatory complianceShould we check Korean regulatory approvals before entering the market?
Yes. The approvals, licences, registrations and restrictions that apply depend on the activity and industry. A business model that is permitted in your home jurisdiction may require a different approach in Korea. Review foreign investment, employment, data privacy, fair trade and sector-specific requirements before launch.
Practical considerationCheck the permissions your actual business model needs.
04Discovery & evidenceIs evidence discovery in Korea the same as in the United States?
No. Korean civil proceedings generally provide more limited discovery than U.S. litigation. A targeted K-Discovery framework under the Act on the Promotion of Mutually Beneficial Cooperation Between Large Enterprises and SMEs is scheduled to take effect on 20 February 2028 for specified technical-information misuse disputes. Its scope and application need to be assessed for the particular case.
Practical considerationPlan how to preserve and obtain evidence from the outset.
Read the enacted legislation05AppealsWhat should a foreign business expect from Korean civil appeals?
A first civil appeal can involve both factual and legal issues and may substantially revisit the case. A further appeal to the Supreme Court generally concerns questions of law. Businesses should account for the possibility of proceedings across multiple court levels when considering timing, costs and settlement strategy.
Practical considerationBuild the potential appeal process into your dispute strategy.
06Registration & formalitiesWhat is the role of a certified judicial scrivener in Korea?
Certified judicial scriveners (beopmusa, 법무사) assist with corporate and real estate registrations and court-related documentation. Their procedural expertise can be useful alongside legal advice when establishing a company, recording a property transaction or handling formal documentation in Korea.
Practical considerationCoordinate legal advice with the required registration steps.
07Advance planningWhen should we plan for disputes and enforcement?
Before the transaction is signed. Consider the governing law, dispute resolution forum, evidence, available remedies and practical enforcement options together. Structuring the relationship with these issues in mind can reduce avoidable uncertainty and help protect your position if a dispute later arises.
Practical considerationThink through the end of the relationship at the beginning.