Legislative Risk Surpasses Judicial Risk
Following the Serious Accidents Punishment Act, a series of legislative changes?including amendments to the Commercial Act and the Yellow Envelope Act (the amendment to the Labor Union and Labor Relations Adjustment Act)?have shifted the primary risk factors for corporate activities from judicial risk to legislative risk. Companies are increasing their advisory spending to respond from the earliest stages of legislative amendments. There are growing concerns that legislative developments, which can even affect ongoing trials, are infringing upon judicial authority and increasing management uncertainty. Some critics argue that "legislative risk is greater than judicial risk." On January 14, the law firm Bae, Kim & Lee held a seminar titled "Strategies for Responding to Strengthened Shareholder Activism Following the Commercial Act Amendment" on the third floor of its headquarters in Jongno-gu, Seoul. Registration for the 150-person seminar closed just 30 minutes after it opened, demons
Reporting Illegal Transfers of Apartment Sale Rights... Reward Payment at the Discretion of Local Governments
The Supreme Court has ruled that the payment of rewards for reporting illegal transfers of apartment sale rights under the Housing Act is at the discretion of local governments. On December 11, the Supreme Court's Special Division 1 (Presiding Justice Shin Sookhee) overturned the lower court's decision and remanded the case to the Suwon High Court in the appeal filed by Mr. A against the Governor of Gyeonggi Province regarding the rejection of his application for a reporting reward (2021Du57025). [Facts]In November 2015, Mr. A reported 1,141 cases of illegal transfers of apartment sale rights in the Seoul metropolitan area to Gyeonggi Province, Seoul City, and Incheon City. As a result of the investigation, criminal penalties were finalized for 52 of these cases. In June 2019, Mr. A applied to the Governor of Gyeonggi Province for a reporting reward of 85 million won for the 52 cases, based on the Housing Act. However, in July of the same year, Gyeonggi Province refused to pay, citing
State May Recover Medical Expenses for Inmate Self-Harm Treatment
The Supreme Court has ruled that the state may exercise its right of recourse for medical expenses incurred when a correctional facility inmate receives treatment for self-harm, is released, and then is re-incarcerated for another crime. On December 11, 2025, the Supreme Court's First Civil Division (Presiding Justice Noh Taeak) overturned the lower court's decision regarding the recourse claim in a lawsuit filed by the government of the Republic of Korea against Mr. A and remanded the case to the Suwon District Court (2025Da215041). [Facts]Mr. A had been held in a correctional institution since 2012 and engaged in self-harm at Daegu Prison in January 2022. He was released in July of the same year upon completion of his sentence.In October, Mr. A was re-arrested for the crime of special intimidation and admitted to Suwon Detention Center. Until February of the following year, he received surgery and outpatient treatment for the previous self-harm incident. The government spent approxi
Killed by a Signboard Dislodged by Strong Winds... Business and Building Owners Also Liable
On the 10th, strong winds swept across the country, resulting in a fatal accident in Uijeongbu, Gyeonggi Province, where a pedestrian was struck and killed by a signboard dislodged by the gusts. How have the courts ruled in cases where signboards have fallen due to strong winds or typhoons, causing casualties? Business Owners and Building Owners Cannot Be Fully Exempt from LiabilityEven if an accident occurs due to a typhoon or strong winds, business owners or building owners who have installed signboards are not completely exempt from liability. According to Article 758, Paragraph 1 of the Civil Act, if damage is caused to others due to a defect in the installation or maintenance of a structure such as a signboard, the possessor of the structure is liable for compensation. If a tenant installs a signboard on the exterior wall of a building and it falls, injuring a pedestrian, the building owner, as the direct possessor of the exterior wall, is liable for damages under Article 758, Pa
Korean-American Sandy Rhee Appointed as Key Witness Attorney in Maduro Drug Case
The attorney representing Hugo Armando Carvajal Barrios, the former general and close associate of Venezuelan President Nicolas Maduro who was indicted alongside him, has been identified as a Korean immigrant. The attorney in question is Sandy S. Rhee, a specialist in international narcotics cases. Carvajal, also known as "El Pollo" (Spanish for "the chicken"), had been pursued by the U.S. Drug Enforcement Administration (DEA) and the Department of Justice for nearly 20 years on charges of overseeing the distribution of several tons of cocaine smuggled into the United States and Europe. He is considered a key figure who could provide decisive testimony against President Maduro, who denies the allegations. Sandy S. Rhee is Carvajal's defense attorney. Born in Seoul, Rhee immigrated to the United States in 1974 at the age of five and later became a naturalized citizen. She graduated from the Richmond School of Law in Virginia in 2001 and obtained her Virginia State Bar license the same
"Personal Information Leaked in Hacking... Mere Anxiety Not Subject to Compensation"
The Supreme Court has ruled that mere anxiety, rather than concrete and actual damage, is not subject to compensation even if personal information is leaked due to a hacking incident. On December 4, 2025, the Supreme Court's Civil Division 2 (Presiding Justice Oh Kyungmi) upheld the lower court's ruling against the plaintiff, Mr. A, in a damages lawsuit filed against Happy Campus operator Agentsoft (2023Da311184). [Facts]In September 2021, Happy Campus suffered a hacking incident that resulted in the leak of email addresses and passwords of approximately 400,000 members. Mr. A, a member of Happy Campus, filed a lawsuit claiming 300,000 won in statutory damages and delayed interest, asserting that he suffered emotional distress due to the personal information leak. [Lower Court Rulings]The court of first instance dismissed Mr. A's claim. The first-instance court stated, "The leaked passwords had been encrypted in advance," and added, "It is difficult to conclude that the mere leak of e
"Foreign Patents Used Domestically Are Subject to Taxation"
The Supreme Court has ruled that even if a foreign patent is not registered in Korea, it is still subject to taxation if it is used in the manufacturing process within the country. On December 4, 2025, the Supreme Court's Special Division 2 (Presiding Justice: Oh Kyungmi) overturned the lower court's decision, which had canceled a tax assessment, and remanded the case to the Suwon High Court in a lawsuit filed by the U.S. company Optodot Corporation (hereafter "Optodot") against the head of the Giheung Tax Office regarding the rejection of a corporate (withholding) tax correction (Case No. 2021Du60298). [Facts]In July 2017, Optodot entered into a license agreement with Samsung SDI for 20 patents, 19 of which were foreign patents. Samsung SDI used these patents to design and manufacture batteries and other products in Korea. As compensation for using the patents, Samsung SDI paid Optodot approximately 2.95 million dollars in the 2017 fiscal year and withheld corporate tax at the source
Why Operating Multiple Hospitals Is Not Immediately Illegal
If a medical professional jointly operates a hospital under the name of a medical corporation, simply being involved in the management of the hospital does not immediately constitute a violation of the "one person, one institution establishment and operation principle" under the Medical Service Act, according to a recent Supreme Court decision. The ruling clarifies that additional evidence of illegal abuse, such as using the medical corporation as a de facto private hospital, must be proven. This is the first judgment to specifically define the criteria for applying the one person, one institution principle within the structure of medical corporations. On December 4, the Supreme Court's Criminal Division 2 (Presiding Justice Oh Kyungmi) overturned the lower court's ruling in the appeal trial of dentist A, who was indicted on charges including violation of the Medical Service Act, and remanded the case to the Daejeon High Court (2020Do949). [Facts]Mr. A, as the representative of Medica
"Judicial Removal" Order Issued for Kwon Do-hyung... Could Return to South Korea as Early as 2030
Kwon Do-hyung, who was sentenced to 15 years in prison by a U.S. court for the Terra-Luna incident, has also received a "judicial removal" order. After serving his sentence, Kwon is expected to be immediately deported to South Korea without a separate immigration lawsuit. Both the U.S. court and prosecutors have no objection to transferring Kwon to South Korea after he serves half of his sentence. Since Kwon has already served about two and a half years, he could be sent to South Korea as early as the second half of 2030. The U.S. court did not order Kwon to pay restitution, citing the number of victims and the scale of damages. On December 11, 2025 (local time), the U.S. Federal District Court for the Southern District of New York sentenced Kwon to 15 years in prison and finalized the judicial removal order. Judicial removal allows the criminal court to bypass immigration court procedures and order the deportation of a convicted individual to their country of origin after serving the
Are Plastic Toys and Lighters Also Considered Dangerous Objects?
"Are canned beers considered dangerous objects?" "If someone hits another person with a green onion, is it considered assault or aggravated assault? Lawyers, please let us know." These are some of the questions that frequently appear on social networking services (SNS). People are curious about what objects are legally deemed "dangerous." According to the Criminal Act, if a person assaults another's body while carrying a "dangerous object," the charge of aggravated assault applies. If convicted of aggravated assault, the penalty is imprisonment for up to five years or a fine of up to 10 million won, which is higher than the penalty for simple assault. There is currently no precedent regarding what crime is recognized if someone hits another person with a green onion. However, by examining existing case law, we can see which objects have been judged as dangerous and under what circumstances those judgments were made. Toys and Pen Refills Also Deemed 'Dangerous'There are precedents wher
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