Labor: Is poor performance a “justifiable” cause for employment termination?

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It is first noted that the cases that have dealt with employment termination based on poor performance are only a few. The reason may be that employers rarely terminate employees on the ground of poor performance alone because they know that it is difficult to justify such termination under the provisions of the Labor Standards …

Litigation: How is hearsay treated under Korean law?

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Hearsay is the legal term that describes statements made outside of court or other judicial proceedings. With few exceptions, hearsay is not allowed as evidence in the U.S. However, in Korea, hearsay evidence would be admissible and have probative value in court at least in civil proceedings if accepted by courts as evidence, and, therefore, …

Corporation:  Role of Representative Director under Korean law

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Under Korean commercial laws, the representative director of a corporation (a joint stock company that is normally called jushik hoesa in Korean) is responsible for implementation of resolutions of the board of directors and shareholders.  The representative director is also responsible for making decisions in regard to the ordinary matters not stipulated under the Commercial …

Labor:  “Justifiable cause” under the Labor Standards Act

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Paragraph 1 of Article 30 of the Labor Standards Act of Korea (“LSA”) states that “An employer shall, without justifiable cause, not dismiss, lay off, suspend, transfer a worker, reduce wages, or take other punitive measures against a worker”   So what is exactly “justifiable cause” under LSA?   For instance, when is an employer deemed …

Corporation:  Frequent questions asked for establishing and operating a branch office in Korea

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When foreign companies wish to build local presence in Korea, and, when building such presence rather on a small scale, they prefer to set up a branch office in Korea and then move on to establishing a local subsidiary if the Korean operations could expand on a larger scale.  The below questions are frequent questions …

Litigation: Dispute Resolution Through Korean Courts

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Constitutional Court   The power to determine the constitutionality of laws is vested in the Constitutional Court. A judgment by the Court that a law is unconstitutional binds the ordinary courts, other state organizations, and local governments. When laws or provisions thereof are declared unconstitutional by the Court, they lose effect from the date of …

Commercial:  Korean law on Assignment of Right to Payment

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How do you effectively assign loans or your rights to certain receivables under Korean laws?   Under the Civil Act of Korea (the “Civil Act”), any right to payment held by a party (the “Creditor”) can be assigned to a third party unless there is an agreement between the Creditor and the party who is …