• Expanding one’s business abroad is itself an act of pioneering. We believe valuable things in this world can only be created by the act of pioneering.
  • “To make a world without barriers for business expansion.”
  • We help you build your business in Korea.
  • From setting up a corporate entity to living in Korea, we provide a total solution to doing business in Korea.
  • At the turn of the 20th century, Korea finally opened its doors to foreign investment. Korea provides generous support to attract foreign entrepreneurs & professionals.
  • Doing business in Korea starts with establishing a local corporate entity.
  • There are 36 types of visa for foreigners entering Korea. We provide visa issuance, extension and change of sojourn status services for foreign entrepreneurs & professionals.
  • We provide accounting, filing, reporting, and auditing services for foreign businesses in Korea.
  • We match foreign-invested enterprises with Korean job seekers & professionals.
  • Finding local partners is the key to business success abroad. Contact us to find your optimal business partners in Korea.
  • Doing business in Korea may involve living in Korea. Contact us to get help with settling in Korea.
  • “To make a world without barriers for business expansion.”
  • Feed yourself with more in-depth insights on doing business in Korea.
  • Feed yourself with more in-depth insights on doing business in Korea.
  • Feed yourself with more in-depth insights on doing business in Korea.
  • Feed yourself with more in-depth insights on doing business in Korea.
  • Feed yourself with more in-depth insights on doing business in Korea.
  • Feed yourself with more in-depth insights on doing business in Korea.
  • Feed yourself with more in-depth insights on doing business in Korea.
  • You can download required documents for registrations and government-provided information in this section.
  • You can download required documents for registrations and government-provided information in this section.
  • For more inquiries or service request, contact us directly.
  • For more inquiries or service request, contact us directly.

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10 MAY 2024

Coupang in Korea: Intellectual Property Rights Policy

TOPIC : Business in Korea Incorporation

Coupang values Intellectual Property Rights (IPR) and acknowledges the efforts of sellers who adhere to both the law and Coupang's guidelines. Continuous violations of IPR may lead to the suspension of accounts and other penalties for sellers. It's crucial for sellers to familiarize themselves with IPR regulations and Coupang's policies to avoid infringing on the intellectual property rights of others. This article offers a broad outline of intellectual property rights (IPR) for sellers on Coupang.


Intellectual Property Rights

Intellectual property rights refer to the rights granted to the creator or owner of a work for a specified duration and are categorized into four primary types. Below are definitions of each type of IPR along with various forms of infringement.

  • Trademark: A distinctive word, symbol, or logo used by the owner to identify their product from others.
  • Copyright: Original works directly produced by the creator, such as images, videos, drawings, etc.
  • Design: Exclusive rights to the appearance, shape, and color scheme of a product (including its components and typography).
  • Patent: Exclusive rights to utilize or market the invention of the IPR holder who conceived the technical concepts.

 

Types of Intellectual Property Infringement

1. Trademark Infringement

Description

Trademark infringement occurs when an individual, not the registered trademark owner with the Korean Intellectual Property Office (KIPRIS), uses a trademark identical or similar to a registered trademark on products that are identical or similar to the designated ones without proper authorization.

 

Instances of Infringement

(1) Selling a product with a specific brand logo when the product is not manufactured by that brand. For instance, if Seller A has registered the trademark 'MAHTO' on KIPRIS, and Seller B sells a product by affixing the same trademark without the owner's consent, it constitutes trademark infringement.
(2) Incorporating another brand's trademark in the product's name or description when the product is not manufactured by that particular brand (with some exceptions for compatible products).

 

Instances Not Constituting Infringement

(1) When it can be proven that the product is legitimately obtained from the trademark owner.
(2) When authorization to use the trademark has been granted by the rightful trademark owner.


Preventive Measures for Trademark Infringement

(1) Refrain from using trademarks registered by others on detail pages or SDP (Seller Detail Page) without proper permission.
(2) Avoid selling counterfeit products.
(3) Include only relevant trademarks in product names, detailed descriptions, etc.

 

2. Copyright Infringement

Description

Copyright infringement refers to the unauthorized utilization of copyrighted materials, such as product images and videos, without consent from the original creator.

 

Instances of Infringement

(1) Selling a product with the original creator's work attached without permission. For instance, if Seller B sells a product featuring the copyrighted work of Seller A.
(2) Reproducing a picture of a product posted by the original creator on their website without proper permission and using it on one's detailed page. For example, if Seller A uploads an image of their product and Seller B captures this copyrighted image without permission and incorporates it into their detailed page, it constitutes copyright infringement as the image was used without consent from the original copyright holder.
(3) Distributing unauthorized copies of media such as books, movies, music, artwork, paintings, etc. For example, if a seller downloads a movie from a Blu-ray disc onto a USB drive and sells it, it constitutes copyright infringement.

 

An Instance Not Constituting Infringement

Obtaining permission from the legitimate copyright owner. If permission to use copyrighted material is acquired from the original copyright owner or through a transfer agreement, it does not constitute copyright infringement. In such cases, if evidential documents are submitted and it is indicated in the appeal form that permission has been obtained, Coupang will review the case and lift the suspension on sales.

 

Preventive Measures for Copyright Infringement

(1) Only upload images created by oneself to the detailed page.
(2) If intending to use copyrighted material belonging to someone else, obtain permission from the original copyright owner and retain relevant documentation as evidence.

 

3. Design Infringement

Description

Design infringement occurs when a design identical to a registered design right with the Korean Intellectual Property Office (KIPRIS) is used without permission.

 

An Instance of Infringement

When a seller manufactures and sells a product that mimics a design registered by the rightful owner with the Korean Intellectual Property Office without obtaining permission. For instance, if Seller A registers a design for a bag featuring a rectangular shape and lattice stitching, and as the design gains popularity, Seller B produces and sells a bag with a similar design, it constitutes infringement of design rights as the design was used without the owner's permission.

 

An Instance Not Constituting Infringement

Obtaining permission from the legitimate owner of the design right. If permission is obtained from the rightful owner of the design right, it does not constitute design infringement. In such instances, if relevant documents are submitted along with the appeal form, Coupang will review them and lift the suspension on sales.

 

Preventive Measure for Design Infringement

Avoid selling products that imitate the design of other products or products protected by design rights.

 

4. Patent Infringement

Description

Patent infringement entails replicating or utilizing a patent registered with the Korean Intellectual Property Office (KIPRIS) without authorization.

 

An Instance of Infringement

When an individual lacking the right to a patented technology registered with the Korean Intellectual Property Office sells a product employing the technology without permission.

Selling a product utilizing technology registered with the Korean Intellectual Property Office without consent constitutes a violation of patent rights. For instance, if Seller A invents and registers a patented technology that combines music with LED light in a fan, and Seller B utilizes this technology without authorization to sell a similar product, it constitutes patent infringement.

 

An Instance Not Constituting Infringement

Obtaining permission to use patented technology: If permission to utilize patented technology is acquired from the original patent holder or through a transfer agreement, it does not constitute patent infringement.

 

Preventive Measure for Patent Infringement

Avoid selling imitations of patented products without permission or a license from the patent owner.


Conclusion

Coupang values Intellectual Property Rights (IPR) and sellers must comply to avoid penalties like account suspension. This article outlines trademark, copyright, design, and patent infringement, stressing the importance of understanding and following IPR regulations to maintain ethical business practices.
Contact us now for professional support and guidance in unlocking the vast opportunities of the Korean market and initiating your venture on the Coupang Marketplace.

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Navigating Korea Company Registration: Your Essential Guide

To explore business opportunities in South Korea's dynamic and economically vibrant market, it's crucial to grasp the essential first step: company formation. With its robust economy, technological prowess, and strategic location in Asia, South Korea offers an attractive environment for entrepreneurs, both domestic and international. This comprehensive guide will walk you through the complexities of initiating a company in South Korea, outlining fundamental steps, prerequisites, and considerations for your business venture in this thriving East Asian nation. Whether you're interested in establishing a Limited Liability Company (LLC), Joint Stock Company, or a Branch Office, this resource aims to provide valuable insights into the company formation process, empowering you to navigate the regulatory landscape with confidence. 1. Choosing a Business Structure In the South Korean business landscape, enterprises can choose from various company structures, each with distinct legal and operational attributes. This decision significantly impacts business operations, ownership, and taxation. Here are the primary business forms commonly adopted in South Korea: Subsidiary Formation Establishing a subsidiary creates a separate legal entity, partially or wholly owned by a parent company. Subsidiaries enjoy autonomy and limited liability, making them a preferred choice for foreign businesses entering South Korea. This structure allows separate management and financial control while leveraging support from the parent company. Private Company (Yuhan Hoesa) Also known as a Limited Liability Company (LLC), a private company provides limited liability protection to shareholders and is relatively easy to establish. Private companies offer versatility and flexibility in management and taxation. When foreign direct investment (FDI) of 100 million KRW or more is received from foreign individuals, private companies fall under the classification of foreign-invested companies as per the Foreign Investment Promotion Act. Despite foreign investment, they are treated as domestic corporations under South Korean commercial law. Branch Office Establishment Opening a branch office allows foreign companies to expand into South Korea. A branch office operates as an extension of the parent company without a separate legal identity, subject to specific reporting requirements. Liaison Office Formation A liaison office of a foreign corporation is limited in its activities, focusing on tasks like market surveys and marketing efforts while adhering to regulations under the Foreign Exchange Transactions Act. The choice of business form should align with your specific objectives, size, and industry. Each form has its advantages and disadvantages related to taxation, liability, and administrative requirements. Consulting legal and financial experts in South Korea can help navigate these nuances and make informed decisions tailored to your company's needs. Understanding the intricacies of company formation ensures your business is well-prepared for success in South Korea's dynamic market. 2. Choosing a Company Name Selecting an appropriate company name is a critical step in the initial stages of company formation in South Korea. Korean corporate names must be written in Korean characters; using English alone is not allowed. Additionally, the chosen name must not resemble or match existing registered entities and should avoid prohibited terms. Ensuring compliance with these regulations and confirming name availability can be done through the Korean Intellectual Property Office (KIPO). 3. Establishing an ESCRO Account and Allocating Paid-Up Capital Notify the bank of your business activities and set up an Escrow (ESCRO) account. This account is essential for the financial arrangements necessary for both company formation and ongoing operations, ensuring proper management of financial transactions. Deposit the paid-up capital into the ESCRO account to strengthen the financial foundation for your company. 4. Preparation and Submission of Internal Documents for Company Formation Compile internal documents such as bylaws and corporate resolutions, which are crucial in outlining the company's structure and operations. These documents must be submitted as part of the registration procedure. 5. Verification of Corporate Registration Certificate Await the confirmation of your corporate registration certificate. This document signifies the legal recognition and formal registration of your company in South Korea, indicating that it has received the necessary approvals for lawful operations. 6. Receipt of Corporate Seal Card Obtain the corporate seal card, a vital element of corporate identity in South Korea. This card is used for signing official documents and facilitating business transactions, emphasizing its importance in corporate affairs. 7. Registration with the Tax Office Complete the business registration process with the tax office to comply with South Korean tax laws and regulations. This critical step ensures adherence to tax obligations related to your company's activities. You will need to provide comprehensive details about your business, including its legal structure, location, and operational specifics. Additionally, you will receive a tax identification number, essential for all financial transactions and reporting to tax authorities. 8. Setting Up a Business Bank Account Establishing a bank account is essential for conducting business in South Korea. This account serves as a central hub for various transactions, including receiving payments, making expense disbursements, and managing finances. Most South Korean banks require identification documents and a business registration certificate to open the account. Pearson & Partners offers remote assistance in opening bank accounts, eliminating the need for a physical visit to South Korea. This service simplifies the process, allowing you to set up a business bank account seamlessly without requiring an in-person visit. 9. Commencing Business Activities With the preceding steps of the company formation process successfully completed, you are now prepared to officially begin your business operations in South Korea. This marks the start of your planned activities and the realization of your business goals. At this stage, your business becomes fully operational, enabling you to offer products or services to customers in the South Korean market. It is crucial to maintain accurate records of business transactions from this point forward to ensure compliance with tax and financial regulations. Conclusion In summary, establishing a company in South Korea offers a promising opportunity in a dynamic and vibrant market. This guide has outlined the essential steps, from selecting a company name to strategically initiating operations. It's crucial to choose the right business structure and ensure compliance with regulatory requirements, including recognition under the Foreign Investment Promotion Act for foreign direct investment (FDI). For comprehensive assistance throughout the entire company formation process, Pearson & Partners is ready to provide support. As a consulting firm specializing in aiding expansion into Korea, we offer incorporation and tax accounting services. Our seasoned professionals are dedicated to facilitating the smooth and successful establishment of your company in South Korea. We provide expert guidance on legal requirements, regulatory compliance, and strategic decision-making, all aimed at maximizing your chances of success in this dynamic market. With extensive experience in assisting business expansion into Korea, Pearson & Partners offers specialized services in incorporation and tax accounting. With our expertise, you can confidently navigate the intricacies of company formation, laying a robust foundation for a prosperous business venture in South Korea. Contact us for comprehensive support tailored to your specific needs and objectives.

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Korea Company Setup 2024: Step-by-Step Registration Guide

South Korea, known as the business hub of Asia, draws many foreign investors looking to engage with its dynamic economy. Establishing a company in Korea can be highly profitable, but the registration process can be challenging for those not well-versed in the Korean legal system. Starting a business in South Korea involves several critical steps, each of which is essential for ensuring your company complies with local regulations and operates smoothly. From selecting the appropriate business structure to securing necessary licenses and opening a bank account, this guide provides a comprehensive overview of the process for foreign investors looking to establish a presence in South Korea.   Step 1: Select an Appropriate Business Structure The initial step in registering your company in Korea is selecting the right business structure. The available options are Joint Stock Company, Limited Company, General Partnership, Limited Liability Partnership, Branch Office and Representative Office. Each structure has its own pros and cons, so it’s crucial to choose one that aligns with your business goals.   Business Structures for Foreign Investors to Choose in Korea 1. Joint Stock Company (Chusik Hoesa) Shareholders in a joint stock company have liability limited to their capital investment. Stocks can be transferred with board approval, and annual shareholder meetings are held to review financial results and dividends. 2. Limited Company (Yuhan Hoesa) This is the most popular choice for foreign investors. It is a for-profit entity that can have up to 50 shareholders, with each shareholder's liability limited to their share capital. 3. General Partnership (Hapmyong Hoesa) In a general partnership, all partners have unlimited liability and share joint responsibility for the business's debts. Transferring ownership requires unanimous consent from all partners. 4. Limited Liability Partnership (Hapja Hoesa) This partnership allows members to choose between limited and unlimited liability. Limited liability partners cannot make business decisions, while those with unlimited liability handle daily operations. 5. Branch Office A branch office is entirely owned and controlled by a parent company. It operates under the parent firm's directives and can perform local business activities like billing and sales but is not an independent legal entity. 6. Representative Office A representative office is fully owned and controlled by a foreign entity. It cannot conduct direct sales in South Korea but can engage in promotional and market research activities.   Step 2: Register Your Company Name After deciding on the business structure, the next step is to register your company name. Ensure the name is unique and doesn't infringe on any existing trademarks. You can check the availability of names on the Korean Intellectual Property Office (KIPO) website.   Step 3: Secure Business Licenses and Permits Before commencing operations, you must obtain the necessary business licenses and permits, which vary based on your industry and chosen business structure. Common requirements include a business registration certificate, tax registration, and employment insurance registration.   Step 4: Open a Bank Account You'll need a bank account to handle business transactions. Most banks require a business registration certificate and identification documents to open an account, which will be used for receiving payments and paying expenses.   Step 5: Register with the Korean Tax Authority Registration with the Korean tax authority is mandatory for all companies. This involves getting a tax identification number (TIN) and registering for value-added tax (VAT) and corporate income tax.   Step 6: Enroll in Social Insurance Employers must register for social insurance, covering national health insurance, national pension, and employment insurance. As an employer, you are responsible for contributing a portion of the insurance premiums for your employees.   Step 7: Submit Annual Reports All companies are required to file annual reports with the Korean government. These reports include financial statements, details of business activities, and any changes in the company's structure or management.   Conclusion Registering a company in South Korea involves meticulous planning and adherence to regulatory requirements. By carefully selecting the right business structure, registering your company name, securing necessary licenses, and fulfilling tax and insurance obligations, you can successfully establish and operate your business. Understanding these steps will help you navigate the registration process efficiently, setting a solid foundation for your business ventures in South Korea. Contact us to learn how you can effortlessly establish your company in Korea.

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How to establish a company in South Korea?

South Korea has become a prime destination for foreigners looking to establish businesses, thanks to its advanced economy and strategic location between China and Japan. As one of the Four Asian Tigers, South Korea offers streamlined company registration processes, making it an attractive jurisdiction for business setup. This guide will walk you through the procedures and requirements for registering a company in South Korea, whether you're a new entrepreneur or a seasoned business owner.   Types of Business Entities in South Korea In South Korea, the type of company you can establish depends on factors like company size and ownership structure. Options include:   1. Joint Stock Company (Chusik Hoesa): The most common structure for foreign investors, allowing for public share issuance with shareholders' liabilities limited to their capital investment. 2. Limited Liability Company (Yuhan Hoesa): A popular choice with a maximum of 50 shareholders, limited liability, and minimal setup requirements, including one director and one shareholder of any nationality. 3. Partnerships: Includes General (Hapmyeong Hoesa), Limited (Hapja Hoesa), and Limited Liability (Hapja Johap) partnerships, each with different liability and ownership transfer rules. 4. Branch Office: An extension of a foreign parent company, sharing its liabilities and without investment or ownership restrictions. 5. Liaison Office: Used for non-commercial activities like market research and R&D, without the ability to generate revenue.   Steps to Establish a Company in South Korea To start a company in South Korea, follow these steps:   1. Reserve a Company Name: Choose and reserve your trading name. 2. Prepare Documents: Draft and prepare the Articles of Association. 3. Submit to Companies Register: Submit all required documents. 4. Open a Bank Account: Set up a company bank account. 5. Obtain a Tax ID: Get a tax identification number. 6. Apply for Licenses: Obtain any industry-specific licenses needed.   You need at least one shareholder and one director, with no nationality or residency requirements. The registration process usually takes about two weeks, while setting up a bank account and obtaining necessary licenses may take up to three weeks.   Requirements for Company Registration in South Korea Minimum Share Capital There is no mandatory minimum share capital for private companies, but you should allocate at least USD 5,000, depending on the sector.   Special Requirements for Foreign Investors Foreign entrepreneurs have several options, including:   - Local Company Incorporation: Requires a minimum investment of KRW 100 million (approximately USD 90,000). - Branch Office: Requires initial notification to the Foreign Direct Investments Board. - Liaison Office: Simplified entry point, limited to non-commercial activities.   Foreign businesses must comply with Foreign Direct Investment laws and may need to register with Korean tax authorities, even if not formally registered, if they employ local staff.   Visa and Residency Foreign entrepreneurs need an entrepreneur visa and may need to obtain an alien registration card for stays longer than six months. This card provides a Resident Registration Number necessary for various activities such as opening bank accounts and registering with local healthcare services. It's also the first step towards potential permanent residency.   Conclusion South Korea's advanced economy and strategic location make it an attractive destination for business. The registration process is simplified, with various company structures available. However, it's essential to comply with Foreign Direct Investment regulations. For expert assistance in launching your business in Korea, contact us. Our experienced team is dedicated to helping you navigate the complexities of company formation, ensuring a smooth and successful start to your business journey.

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