Korean Business Law

Korean Business Law

Elgar Korean Law series

Edited by Hwa-Jin Kim

The approach of the book is two-fold. On the one hand the book offers valuable insight into the fundamental principles of Korean business law, and landmark cases in the field. On the other hand there is extensive analysis of more recent developments and of current issues raised by recent court cases. The book combines coverage of Korean corporate law and Korean financial law and includes detailed examination of corporate law issues such as director liability, minority shareholder protection, and the dynamic practice area of mergers and acquisitions, and of financial law topics, including private equity, structured finance and foreign financial institutions.

Chapter 7: Review of Korean laws pertinent to Foreign Financial Institutions' Korean business: with emphasis on a few issues that are frequently raised in practice

Hyunjoo Oh

Subjects: asian studies, asian law, law - academic, asian law


7. Review of Korean laws pertinent to Foreign Financial Institutions’ Korean business: with emphasis on a few issues that are frequently raised in practice Hyunjoo Oh OVERVIEW I. There are two ways in which foreign investment firms and foreign banks (each a “Foreign Financial Institution”) do business in Korea – (1) establish a local operational base in Korea in the form of a subsidiary, branch, etc. and have that local operational base obtain relevant licenses and offer services onshore (the “Onshore Operation”) and (2) offer services to Korean residents directly from an offshore base without having any local operational base (the “Offshore Operation”). In case of the Onshore Operation, the local operation base and its activities would be subject to the regulations that Korean financial institutions would be subject to regarding such activities except for those matters that statutes say otherwise. In the case of the Offshore Operation, a Foreign Financial Institution’s activities are generally deemed to take place outside Korea, to have little effect on Korea and to be insufficient grounds for imposing license requirements on such Foreign Financial Institution. However, if such activities are deemed to have direct impacts on the Korean market, such Foreign Financial Institution would be subject to pertinent Korean regulations, such as license requirements (e.g. foreign non-discretionary investment advisors or discretionary investment advisors are required to obtain licenses before they can provide services to domestic residents from their offshore bases) and registration statement requirements (e.g. a public offering of foreign-currency denominated securities by a Foreign...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information