South Korea: Legal environment

Business Contract

General Observation: You must state precisely the obligations of the vendor and the methods of quality control.
A contract is the beginning, rather than the end, to a negotiation. Any change in the contract may cause problems to arise. Koreans may regard a contract as a "gentlemen's agreement" subject to further negotiation if conditions change.
Law Applicable to the Contract: You must be particularly vigilant about the law applicable to the contract and the methods of conflict resolution. Indeed, Korea is not a signatory to the Vienna Convention on International Contracts.
The Korean legal system is not easy for a foreigner to understand so you are advised to choose international law or a system of settlement by arbitration.
Advisable Incoterms: FOB and CIF are widely used in Korea, even if Incoterms 2010 recommends FCA in case of container, air or complicated delivery.
Language of Domestic Contract: Korean, English
Other Laws Which Can Be Used in Domestic Contracts: If the Korean law is not used, you could select the international laws - especially in English - or the law of your contactors (in English).

National Organisations: Korea Institute of Patent Information (KIPRIS)
International Intellectual Property Training Institute (IIPTI)
Regional Organisations: Intellectual Property Rights Experts Group (IPEG)
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

Type of property and law	Validity	International Agreements Signed
Patent Patent Law	20 years	Patent Cooperation Treaty (PCT)
Trademark Trademark Law	10 years, renewable every 10 years	Trademark Law Treaty Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design Design Law	15 years
Copyright Copyright Law	50 years after the death of the author (It will be 70 years from the end of 2009 or 2010)	Berne convention For the Protection of Literary and Artistic Works Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty WIPO Performances and Phonograms Treaty
Industrial Models Utility Model Law	10 years

Equal Treatment of Nationals and Foreigners: Yes
The Language of Justice: Korean
Recourse to an Interpreter: Yes
Legal Similarities: The system is modelled on European systems with Anglo-American and Japanese influences.

Securities-related Laws	Futures Trading Act Collective Investment Scheme Act Commercial Code
Commerce Laws	Unfair Competition Prevention Act and Trade Secret Protection Act
Consumer Laws	Act on the Protection of Personal Information Maintained by Public Agencies Consumer Protection Act On Electronic Transaction Door-To-Door Sales, Etc. Act Electric Appliances Safety Control Act Food Sanitation Act Regulations On Consumer Disputes Resolution Product Liability Act, etc.
Tax Laws	Special Taxation for Foreign Investment in Restriction of Preferential Taxation Act

Checking National Laws Online: Korean Law Service of Supreme Court
Korean Law Service
Ministry of Government Legislation (MOLEG)
Korea Legislation Research Institute (KLRI)
Other Useful Resources: MOJ, Ministry of Justice
MOLEG, Ministry of Government Legislation
National Assembly, Recently Enacted Law
Country Guides: Buy USA Info Country Guide

The Constitutional Court	Decides on the constitutionality of laws, ruling on competence disputes between governmental entities, adjudicating Constitutional Complaints filed by individuals, etc.
Supreme Court	Hears appeals from judgments or rulings rendered by the High Courts, the Patent Court, and the appellate panels of the District Courts or the Family Court.
High Courts	Hear appeals from judgments or rulings rendered either by a panel of three judges of the district courts or the family court, or by the administrative court. The jurisdiction of high courts is exercised by a panel of three judges.
District Courts & Branch Courts	There are 18 district courts throughout the nation. In each district court, there is an administration bureau to handle administrative affairs. The district courts or branch courts retain original jurisdiction over civil and criminal cases.
Family Court	Exclusively deals with domestic relations and juvenile offense cases, the Family Court was established on October 1, 1963, on an equivalent level to the district courts.
Administrative Court	The only Administrative Court is located in Seoul.
Patent Court	Operates in a two-tier system. When a party is dissatisfied with the decision of the Intellectual Property Tribunal, a lawsuit may be filed with the patent court and later to the Supreme Court.

Public prosecutors: Public interest representatives who investigate crimes, indict suspects and direct/supervise the police in the investigation of crimes.
Attorneys-at-law: Participate in judicial proceedings as representatives of parties in civil or administrative cases or as defense counsels in criminal cases.
Notary publics: They draw up notaries deeds on juristic acts and attest to the authenticity of any instruments or writings signed by private persons.
Judicial scriveners: They perform such duties as preparation of documents to be submitted to a court or public prosecutor's office, preparation of documents necessary for registration and proxy of application for registration or deposit.
Marshals: Independent, extra-judicial officers affiliated with the district courts. They are engaged in the execution of judgments and the service of documents.

Arbitration: Recognized under Korean law as a legitimate method for settling disputes; used specifically in the field of international transactions.
Arbitration Law: Arbitration Act
Arbitration Rule (Dec. 13, 2004)
International Arbitration Rules (Jan 25, 2007)
Conformity to International Commercial Arbitration Rules: Party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Party to the Geneva Protocol on Arbitration Clauses.
Party to the Geneva Convention of the Execution of Foreign Arbitral Awards.
Appointment of Arbitrators: Free determination of the number (minimum 3) and the method of appointment by the parties.
Arbitration Procedure: After hearing the parties, the arbitrator makes an award.
No appeal is allowed against an award except if it has been made on false evidence. In this case, it can be cancelled by the law.
Permanent Arbitration Bodies: Korean Commercial Arbitration Board (KCAB)

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