INSIGHTS

法律简讯
Korea Environmental Legal Update (Spring 2024) This issue includes: Ministry of Environment’s Plans for 2024 Amendments to Reform the Chemical Substance Management System Overhauled Circular Economic Society Act Upcoming First Reporting Deadline for the CBAM Transitional Period and EC’s Publication of Default Values for Embedded Emissions Updates on the Amendments to the Emissions Trading Act Which Expand the Scope of Participants in the Emissions Trading System The National Assembly Enacts Act on the Capture, Transportation, Storage and Utilization of Carbon Dioxide [Korean Version]
2024.03.08

法律简讯查看更多
法律简讯
Announcement of Consumer Protection Measures for Users of Overseas Online Platforms On March 13, a meeting was held by the Deputy Prime Minister for Economic Affairs where relevant ministries had a discussion on the “Consumer Protection Measures for Users of Overseas Online Platforms” (the “Protection Measures”). With the recent growth in the number and volume of overseas direct purchases, as well as the rapid increase in consumers’ use of overseas online platforms, concerns over consumer damages and reverse discrimination against domestic platforms have been escalating and became a social issue. Accordingly, on March 7, the Government decided to organize the Task Force (“TF”) for Comprehensive Measures on Overseas Direct Purchase under the auspices of the Office for Government Policy Coordination to jointly respond to these issues with the relevant ministries. Against such backdrop, the Protection Measures have been prepared as a comprehensive measure to strengthen compliance by overseas online platform operators with their obligations under Korean laws and to prevent and provide remedies for consumer damage. Accordingly, it is expected that various ministries will carry out inspections and surveillance on overseas online platforms, conduct investigations on legal violations, and make a concerted effort to improve relevant systems. In this regard, it would be highly advisable for overseas platform operators to pay close attention to the Government’s policy and enforcement trends. The Protection Measures are comprised of Three Major Implementation Strategies and Four Key Items. The key points are as follows. Strict Enforcement of Korean Laws against Overseas Online Platforms With regard to the Four Key Items of concern over consumer damage, the Government announced that it will focus on preventing consumer damage through a joint response system involving relevant ministries as follows, and strengthen its management and enforcement of Korean laws vis-à-vis overseas online platforms. Key Items Main Details Relevant Ministries Harmful Foods and Drugs Special inspection of illegal distribution or unfair advertisement of blood glucose meters, blood pressure gauges, and antipyretic analgesics Request overseas direct purchase platforms to block advertisements, etc. Execution of MOU with overseas platforms Ministry of Food and Drug Safety (“MFDS”) Counterfeit Enhanced measures for overseas direct purchase customs clearance Amendment to the Trademark Act to clarify grounds for detecting counterfeit goods at the customs clearance stage Implementation of a voluntary correction system for counterfeit prodcts Korean Intellectual Property Office (“KIPO”) Korea Customs Service (“KCS”) Products Harmful to Youth (Including Adult Products) Focus on the inspection of six overseas shopping malls that provide services in Korean Strengthen the response system by monitoring and blocking access to the youth, etc. Ministry of Gender Equality and Family (“MOGEF”) Korea Communications Standards Commission (“KCSC”) Privacy Infringement Investigate overseas direct purchase service providers’ compliance with the Personal Information Protection Act Conduct evaluations of privacy policy Check whether users are notified of, and consent to, the overseas platform operator’s access to smartphone apps Personal Information Protection Committee (“PIPC”) Korea Communications Commission (“KCC”) In addition, the Korea Fair Trade Commission (“KFTC”) plans to amend the E-commerce Act to require overseas business operators of a certain size to designate a local agent in order to fulfill their obligations to protect consumers. Further, in order to block the entry of hazardous goods at the customs clearance stage and strengthen the management of items prohibited from importation, the KFTC plans to strengthen overseas risk management activities and upgrade the customs clearance-related risk management system. Establishment of a Pan-Government Response System Considering that consumer damage caused by overseas online platforms is linked to various issues, the Government has decided to establish a pan-government response system with the TF for Comprehensive Measures on Overseas Direct Purchase under the Prime Minister’s Office. The Government plans to regularly inspect the implementation status of the Protection Measures through this TF, thoroughly check the status of direct overseas purchases, and prepare/implement comprehensive measures such as (i) strengthening of safety management by blocking the entry of hazardous goods, (ii) resolving consumer complaints and inconveniences, and (iii) resolving difficulties in related industries. Furthermore, the Government plans to establish legal grounds for activities by the working-level consultative body for blocking the entry of hazardous goods from overseas by proposing the enactment of the Framework Act on Consumer Safety to effectively respond and expand the scope of authority. Prevention and Relief of Consumer Damage The KFTC and the Korea Consumer Agency plan to proactively prevent and relieve consumer damage caused by overseas online platforms as follows: Promote consumer damage relief (establishment of a hotline to communicate with overseas platforms, operation of an exclusive window for consumer complaints and dispute settlement, etc.). Provide integrated information through the “Consumer 24,” etc. Provide prompt response in case of a crisis (e.g., issuance of a warning) when there is risk of serious consumer damage. Conduct fact-finding surveys on domestic and overseas platforms to inspect whether they are in compliance with their obligations to protect consumers (e.g., obligations under the E-commerce Act). Execute voluntary agreements with overseas platforms to preemptively block the entry of hazardous goods into Korea. Work in parallel with consumer groups monitoring hazardous goods.
2024.03.20

法律简讯查看更多
法律简讯
Legislative Notice of Proposed Amendment to the Enforcement Decree of the FSCMA on Mandatory Prior Disclosure of Insider Transactions for Listed Companies As previously noted (Link), on December 28, 2023, the National Assembly introduced a proposed amendment to the Financial Investment Services and Capital Markets Act (the “FSCMA”) requiring certain insiders (executives and major shareholders) of listed companies to disclose proposed large-scale share transfers. The proposed amendment was passed on January 23, 2024 and is set to take effect on July 23, 2024. On February 29, 2024, the Financial Services Commission issued a legislative notice of a proposed partial amendment to the Enforcement Decree of the FSCMA (the “Proposed Amendment”), as well as a pre-announcement of amendments to (i) the Regulations on Disgorgement of Short-Swing Profits and Unfair Trading Investigation and Report, Etc., and (ii) the Capital Markets Investigation Operations Manual. With respect to mandatory prior disclosure of insider transactions, the Proposed Amendment sets forth (i) persons exempt from disclosure obligations, (ii) transactions subject to disclosure obligations and exceptions, (iii) details of and procedures for disclosures, (iv) grounds for withdrawal, and (v) standards for imposing administrative fines for violations of the disclosure obligations. The key details are as follows: 1. Persons Exempt from Disclosure Obligations The Proposed Amendment exempts from the new disclosure obligations professional investors who are domestic financial investors expected to have a relatively high level of internal control standards and be less likely to misuse undisclosed information (e.g., pension funds, collective investment vehicles such as private equity funds (including special purpose companies), banks, insurance companies, specialized credit finance companies, financial investment businesses, venture capital firms, and the Korea SMEs and Startups Agency) and similarly situated foreign investors. 2. Transactions Subject to Disclosure Obligations and Exceptions The Proposed Amendment and related regulations provide that the disclosure obligations should apply only in cases where the trading volume and amount of shares and equity-linked securities (including convertible bonds, bonds with warrants and related depository receipts) aggregated over the past six months are 1% or more of the total number of issued and outstanding shares of a listed company or where the total value of transactions is KRW 5 billion or more. However, the types of transactions listed below, viewed as being unavoidable, are exempt from the disclosure obligations. In particular, exceptions to disclosure are recognized in a transfer of shares that entails a change of the largest shareholder (including any transfer or acquisition accompanied by or subsequent to such a transaction), M&A transactions involving control interests, and a sale of equity securities of other shareholders as a part of or subsequent to such transaction. In addition, an exception to disclosure is granted even where a major shareholder sells its shares in a block trade to raise funds for inheritance and gift taxes, enabling flexible trading. (1) Where the sale or purchase of shares is inevitable due to a statutory requirement; (2) Where specific securities publicly offered, privately placed, or sold are acquired through an underwriting process or where specific underwritten securities are disposed; (3) Where shares are acquired through the exercise of stock options; (4) Where stock is acquired through the exercise of rights to equity securities already owned (such as through preemptive rights, convertible bonds or bonds with warrants); (5) Where securities are acquired or disposed through the exercise of other rights or the issuance of exchangeable bonds; (6) Where newly issued specific securities are acquired; (7) Where specific securities publicly offered or sold are acquired by subscription; (8) Where a member of an employee stock ownership association acquires shares of the relevant company through such employee stock ownership association; (9) Where shares are disposed through the exercise of appraisal rights; (10) Where stock is disposed through a tender offer; (11) Where stock is acquired by means of a tender offer; (12) Where securities are acquired through stock dividends; (13) Where securities are acquired by inheritance; (14) Where specific securities are acquired or transferred through a share transfer agreement that entails a change of the largest shareholder (including acquisition or transfer of specific securities as a part of or subsequent to such transaction); (15) Where specific securities are disposed as a result of a creditor’s enforcement of its security interest; (16) Where certain securities are acquired, transferred, or otherwise disposed as a result of a merger, acquisition or transfer of a material business or asset, comprehensive exchange or comprehensive transfer of shares, split-up or split-merger; (17) Where a major shareholder sells specific securities to raise funds for the payment of tax by annual installments permitted under the Inheritance Tax and Gift Tax Act; and (18) Other cases where the Securities and Futures Commission recognizes that no material undisclosed information is likely to be used. 3. Details of and Procedures for Disclosures The Proposed Amendment and related regulations require executives and major shareholders to report their transaction plans 30 days prior to the commencement of the relevant transaction. Transaction plan reports should include the expected trading price and volume of the shares to be traded, and the trading period (limited to up to 30 days). In addition, the Proposed Amendment allows the flexibility of up to 30% of the amount set out in the transaction plan, if deemed necessary to reflect the market situation at the time of the transaction. 4. Grounds for Withdrawal The Proposed Amendment and related regulations allow withdrawal of transaction plans in unavoidable circumstances such as the death or bankruptcy of the filing party, delisting of the company, suspension of trading, etc., or where the market situation changes rapidly, such as when the relevant stock price exceeds 30% of the closing price of the day before the reporting date of the transaction plan. 5. Standards for Imposing Administrative Fines for Violations of Disclosure Obligations Under the amended FSCMA, failure to disclose transaction plans, providing false disclosures, failure to perform transaction plans and any other violations of disclosure obligations may result in an administrative fine of up to 2/10,000 of the market capitalization (but not exceeding KRW 2 billion), with the standards for imposing such fines set forth in detail in the Proposed Amendment and related regulations. The pre-announcement period for the Proposed Amendment and related regulations will be goes from February 29 to April 11, and the Proposed Amendment and related regulations will take effect on July 24 after the review of the Ministry of Government Legislation, the holding of the Vice-Ministerial Meeting, and resolution by the State Council. The disclosure obligations require that executives and major shareholders who engage in such large-scale stock trading make a disclosure regarding such trading 30 days in advance, and they are restricted, in principle, from changing or withdrawing such transaction after disclosure. As a result, exposure to the risk of stock price fluctuations up to the time of trading is inevitable. Therefore, the determination of who is exempt from the disclosure obligation and whether a transaction is eligible for any disclosure exception under the Proposed Amendment and related regulations may have a significant impact on the review of transaction structures and schedules. Potentially affected parties should stay informed regarding any change to the Proposed Amendment after the legislative notice. [Korean Version]
2024.03.13

法律简讯查看更多
法律简讯
Strengthened Regulations on Dark Patterns On January 25, 2024, the National Assembly passed a bill targeting so-called “dark patterns,” through a proposed amendment (“Proposed Amendment”) to the Act on the Consumer Protection in Electronic Commerce (“E-Commerce Act”). “Dark patterns” are interface features on websites and apps that can be used to manipulate users into making decisions that they would not have made had the relevant information been presented transparently. The Proposed Amendment will come into force on February 14, 2025 and notably identifies specific types of features that will be prohibited. The KFTC had announced an intent to amend existing laws (including the E-Commerce Act) to bolster enforcement against dark patterns, after previously establishing the Guidelines on Self-Regulation for Dark Patterns in July 2023 (distinguishing dark patterns that can be regulated under existing laws from those that would require a separate statutory basis). With these developments, we expect the KFTC to actively investigate potential dark pattern-related violations and continue to explore legislative amendments to address dark patterns. Key Provisions of the Proposed Amendment The Proposed Amendment imposes administrative fines for violating the new provisions targeting dark patterns: (i) requirement for prior consent from consumers when increasing subscription fees or converting free trials to paid services (addressing so-called “hidden renewals;” Article 13, Paragraph 6 of the E-Commerce Act), and (ii) prohibition against the following five types of dark patterns (Article 21-2 of the E-Commerce Act): Gradual Disclosure of Costs: Displaying or advertising a lower price on the initial search results page, and then revealing previously hidden costs only at the final step of the checkout process (without justifiable reason). Pre-selection of Purchase Options: When asking consumers whether they would like to purchase other products, preselecting items for purchase by default. False Hierarchies: Deceiving consumers into believing a particular option (advantageous to the seller or disadvantageous to the consumer) is the only available choice, by displaying the other possible options in a matter that differs significantly in size, shape and color (e.g., smaller font, faded color, etc.). Obstruction of Cancellation or Withdrawal: Interfering with cancellation or unsubscription by consumers without justifiable reason by making cancellation/unsubscription difficult or requiring a cancellation/unsubscription process that is different from the sign-up process. Repeated Interference: Interfering with consumers’ decision-making process by repeatedly asking them (e.g., through pop-up windows) if they want to change a selection or choice they have already made. We expect more specific aspects of the Proposed Amendments to be clarified through amendments of the subordinate regulations to the E-Commerce Act, and through official interpretations by the KFTC. These will include, for example, (i) the method of obtaining prior consent or informing consumers of an increase in service fees or free-to-paid conversion, (ii) the definition of “justifiable reason” (for “Gradual Disclosure of Costs” and “Obstruction of Cancellation or Withdrawal”), and (iii) matters specifically delegated to the subordinate regulations (for “Gradual Disclosure of Costs” and “Repeated Interference”). In the meantime, we expect the KFTC to continue pursuing amendments to other related laws and regulations, as part of its drive to strengthen enforcement against dark patterns. It will therefore be important to closely monitor the legislative and regulatory developments in this space. [Korean Version]
2024.03.11

法律简讯查看更多
法律简讯
Amendments Strengthening Protection of Rights Holders Under the Trade Secret Protection Act and Patent Act Amendments to the Act on the Prevention of Unfair Competition and Protection of Trade Secrets and the Patent Act (collectively, the “Amendments”), which were passed by the National Assembly earlier this year and were promulgated on February 20, 2024, will come into force on August 21, 2024. As previously reported in our newsletter of January 2024 (Link), the Amendments will (i) strengthen criminal penalties for unfair competition crimes and misappropriation of trade secrets, as well as impose enhanced penalties against corporations (e.g., up to three times the statutory maximum that can be imposed against an individual, and extend the statute of limitations from the current five years to ten years); (ii) establish a strong punitive damages system that allows punitive damages of up to five times the actual damages for intentional infringement of patents or exclusive licenses, theft of ideas, or misappropriation of trade secrets; and (iii) grant the Commissioner of the Korean Intellectual Property Office (“KIPO”) the authority to issue corrective orders for unfair competition violations. Once implemented, the Amendments are expected to facilitate more effective prevention and legal measures against the infringement of intellectual property rights overall, which may lead to more proactive enforcement of intellectual property rights in the future. In particular, the Amendments will grant the Commissioner of the KIPO stronger enforcement authority against acts of unfair competition. Previously, the Commissioner of the KIPO could issue “corrective recommendations” against acts of unfair competition, but such recommendations lacked enforcement power and thus were not very effective against ongoing acts of unfair competition. In contrast, the Amendments give the Commissioner of the KIPO the authority to issue corrective orders and impose fines of up to KRW 20 million for non-compliance. Accordingly, it is anticipated that the KIPO will take more assertive administrative actions against individuals or entities that engage in acts of unfair competition. In addition, the Amendments will resolve the difficulty of using the results of administrative investigations as evidence in civil litigation. Specifically, the Amendments allow parties in civil actions to request access to and obtain copies of material in related administrative investigations of the KIPO. In the past, acts of unfair competition, such as the theft of ideas, had been especially difficult to prove during civil litigation because most of the evidence tended to remain under the control of the alleged misappropriating party. When the Amendments are implemented, it will be possible to use evidence from an administrative investigation in a civil action for injunction, damages, and the like. Therefore, following the Amendments, rights holders may proactively consider taking advantage of the corrective order system of the KIPO and utilize evidence collected through the procedure before commencing a civil action. [Korean Version]
2024.03.06

法律简讯查看更多

김·장 홍보

“Jurisdictional Firm of the Year: South Korea”

Kim & Chang was awarded the “Jurisdictional Firm of the Year: South Korea” recognition at the IFLR Asia-Pacific Awards 2024. This award is given to one law firm in each jurisdiction that has engaged in the most innovative cross-border transactions in the Asia-Pacific region.
查看更多
“ESG Firm of the Year” and “IP Firm of the Year”

At the Asia Legal Awards 2024, Kim & Chang obtained the “ESG Firm of the Year” and “Intellectual Property Firm of the Year” recognitions.
查看更多
Ranked “Band 1” in All Nine Areas - Chambers Global 2024

In the 2024 edition of Chambers Global, Kim & Chang was once again the only Korean law firm ranked “Band 1” in all nine practice areas that were surveyed for Korea. In the individual categories, 39 of our attorneys and patent attorneys were recognized as “Leading Individuals.”
查看更多

웹접근성

김∙장 법률사무소는 장애인 및 비장애인 누구나 편리하게 웹서비스를 이용하실 수 있도록 웹접근성 준수 및 개선을 위하여 노력하고 있습니다.

김∙장 법률사무소는 앞으로도 모든 사용자들이 편리하게 서비스를 이용할 수 있도록 최선을 다하겠습니다.
불편사항은 lawkim@kimchang.com으로 연락주시면 친절하게 안내해드리겠습니다

레이어 닫기

本网站仅以提供一般信息为目的而制作，并非旨在提供法律咨询或宣传。针对因从本网站上获取的信息而导致的问题以及进而引致的直接或间接损害，金•张法律事务所不负任何法律责任。在依据本网站上的信息采取行动之前，请务必向本事务所征询专业法律意见。

近期我所发现有不法分子冒充金·张律师事务所及（或）所属成员进行行骗。常见行骗手段为冒充本所或所属成员，谎称代为进行诉讼、签订合同或劝诱进行投资从而索要钱财或要求提供个人信息，更有甚者谎称录用并以此索取被害人钱财。在此郑重声明，对基于此类建议或要求引起的任何问题，我所不承担任何法律责任。

金·张律师事务所的成员信息均在官网（www.kimchang.com）公布，且所有成员只通过管网公布的联系方式与客户沟通，不会通过此外的其他电子邮件地址、电话号码、短信或社交媒体进行联络或提供法律服务。更不会借此索要钱财或要求提供个人信息。

如果接到提及金·张律师事务所及/或所属成员的可疑电话或邮件时，请务必拨打本所总机号码(02-3703-1114)或通过电子邮件(lawkim@kimchang.com)咨询确认。

레이어 닫기