Recent Developments

On August 27, 2025, Lee & Ko successfully hosted a seminar titled “Analysis and Outlook on the Yellow Envelope Act”. The event provided a comprehensive examination of the proposed amendments to the Trade Union and Labor Relations Adjustment Act and their implications for businesses.

The seminar commenced with opening remarks by Mr. Kyung-Duk An, Senior Advisor and former Minister of Employment and Labor, setting the stage for an insightful discussion. The program featured two key sessions, followed by an interactive Q&A segment.

Session 1: Analysis of Labor-Related National Policy Agendas

Mr. Min-Seok Si, Head of Lee & Ko’s ESG Center, delivered a presentation on the new administration’s labor policy priorities. The session outlined six critical areas:
1.Reduction of actual working hours, annual leave reforms, and the comprehensive wage system.
2.Establishment of a fair wage system.
3.Extension of retirement age, pension reform, and prevention of wage arrears.
4.Expansion of labor law coverage.
5.Promotion of industry-wide bargaining and broader application of collective agreements.
6.Strengthening occupational safety and health frameworks.
Mr. Si provided a detailed analysis of the interconnections among these priorities and their potential impact on businesses.

Session 2: Analysis and Outlook of the Yellow Envelope Act

Mr. Jae-In Roh of Lee & Ko presented an in-depth overview of the Yellow Envelope Act, covering its conceptual framework, legislative history, and key provisions of the amended Act. The session also addressed the expected implications of the Act’s enactment, potential follow-up measures, and practical considerations for corporate compliance.

Q&A Session

The seminar concluded with a dynamic Q&A session, featuring Mr. Min-Seok Si, alongside Lee & Ko Attorneys Mr. Chang-Soo Jin, Hyun-Seok Song, and Jae-In Roh. The panel addressed pre-submitted and live questions from both in-person and online attendees, fostering a robust exchange of ideas.

This seminar provided in-house legal and HR professionals with valuable insights into the proposed amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, equipping attendees with the knowledge to navigate upcoming regulatory changes effectively.

A video recording of the seminar will be made available shortly.

On August 21, 2025, Lee & Ko successfully hosted its first official seminar in Singapore at the Fairmont Hotel under the theme “Korea Law, Policy, and Compliance: Navigating Legal Change and Uncertainty in a New Political Landscape.” The seminar commenced with welcoming remarks by Mr. V.K. Rajah SC, former Attorney General and Judge of Appeal of Singapore and independent arbitrator at Duxton Hill Chambers, followed by an opening address by Mr. Ho Joon Moon, Managing Partner of Lee & Ko. 

The program was moderated by Ms. Saemee Kim, Partner in Lee & Ko’s International Arbitration Team, and featured five in-depth sessions led by senior attorneys from various practice groups.

The first session was presented by Mr. Allen Hyungi Ryu, Senior Foreign Attorney in Lee & Ko’s Corporate and M&A Practice Group. Mr. Ryu addressed the recent amendments to the Korean Commercial Act and their impact on corporate governance, highlighting the expansion of directors’ fiduciary duties, revisions to the 3% rule on audit committee appointments, and the strengthening of minority shareholder rights. 

The second session was delivered by Mr. Jung Min Pak of Lee & Ko’s Banking & Finance Practice Group, who explored the topic of energy regulations and sanctions. He analyzed the expansion of nuclear and renewable energy, the intersection of energy security and international sanctions, and global trends in related regulations, and suggested strategic approaches for companies to respond to the energy transition and international regulatory environment.

The third session featured Mr. William Woojong Kim, Senior Foreign Attorney in Lee & Ko’s Labor & Employment Group, who addressed timely issues in the labor and employment sector. In particular, he discussed the main provisions and impact of the so-called “Yellow Envelope Law,” corporate risk management in light of amendments to labor-related laws, and practical strategies to respond to changes in labor–management relations.

The fourth session was presented by Mr. Younghoon Mok, Senior Foreign Attorney in Lee & Ko’s Telecommunications, Media, and Technology Group. He outlined Korea’s amended Personal Information Protection Act, the newly enacted AI Framework Act, and the phased rollout of the Virtual Asset User Protection Act. The presentation focused on the compliance issues for companies managing cross-border data transfers and introduced integrated risk management approaches.

The final session was delivered by Mr. Sanghoon Han, Partner in Lee & Ko’s International Arbitration Team and a Chartered Arbitrator. He provided an overview of Korea’s judicial system and its distinctive features in comparison with other jurisdictions. He focused on the strategic use of interim measures, such as provisional attachments and injunctions, in both litigation and arbitration. 

After the main sessions, Mr. Zac Sharpe, Co-Head of Lee & Ko’s International Arbitration Team led a lively Q&A session. The seminar concluded with closing remarks from Dr. Eun Young Park, Chair of the Global Disputes Group and Co-Head of the International Arbitration Team.  Dr. Park highlighted the importance of understanding Korea’s rapidly evolving legal landscape amid political and economic shifts.

As Lee & Ko’s first official event in Singapore, the seminar marked a meaningful step in strengthening our international presence. The firm received positive feedback from attendees who appreciated the practical insights, comparative approaches, and strategic guidance offered throughout the program.

On July 18, 2025, Lee & Ko sponsored the seminar on 'Current Status of the Digital Asset Market and Major Legal Issues' hosted by Blockchain Law Society, Digital Asset eXchange Alliance (DAXA), and Digital Finance Law Forum.

In this seminar, the following summarizes the key presentations and discussions from each of the three sessions.

□ Session 1: Stablecoins and Monetary Policy — Internationalization of the KRW: Opportunity or Risk? (Session Chair: Hyun-Koo Kang, Attorney at Law Firm, Lee & Ko LLC)

• Presenter: Jong-Seung Kim, CEO, XCRYPTON

Introducing stablecoins for the internationalization of the KRW is undoubtedly a historical necessity and challenge. A limited internationalization experiment using KRW stablecoins as an offshore settlement method could be a viable alternative. A controlled experiment focused on trade settlements could allow for external distribution and capital flow management within manageable boundaries. However, unchecked expansion may accelerate de-KRWization and destabilize domestic capital controls. Therefore, a tightly controlled design is essential. For KRW stablecoins to reach the level of complementary currency, we must first experiment with a limited integrated internationalization model, and urgently establish legal and regulatory safeguards against risks such as currency speculation. Rather than simply debating issuance approval, we must deliberate on the necessary policy frameworks and institutional responses. The initiative must align with the Bank of Korea’s monetary policy and the Ministry of Economy and Finance’s foreign exchange policy. In the digital liquidity era, monetary and FX policies are inseparable, and internationalizing KRW stablecoins must proceed under strict control.

• Discussant: Jung-Doo Lee, Head of Center, Korea Institute of Finance

Institutionalizing KRW stablecoins is not optional but essential. However, with USD stablecoins accounting for over 90% of the global market and KRW stablecoins lacking a clear profit model, we must approach their competitiveness and utility with caution. Digital currencies, including stablecoins, are institutional tools with macroeconomic implications—not merely tech experiments. In the digital age, monetary and foreign exchange policies cannot be treated separately, necessitating integrated policy design. While we should leverage stablecoins’ utility, new regulatory and policy frameworks are needed to prevent financial market instability. Protection mechanisms for both domestically and internationally issued stablecoins must be promptly established.

• Discussant: Soo-Han Cho, Attorney at Law, UPRISE

If stablecoins are allowed, private companies will effectively create currency. To mitigate potential shocks, such as mass reserve liquidation impacting the bond market, these entities should meet bank-level capital and risk management requirements. Robust prudential supervision and risk response frameworks are essential—otherwise, systemic risks may increase. Although stablecoins offer payment utility, the current legal framework under the Electronic Financial Transactions Act, the Foreign Exchange Transactions Act, and the Capital Markets Act is incompatible. A new, separate regulatory statute is needed.


□ Session 2: Legal Issues on Foreign Participation in the Domestic Virtual Asset Market and Overseas Expansion of Domestic Service Providers (Session Chair: Jaejin Kim, Executive Vice Chairman, DAXA)

• Presenter: Chang-Min Chun, Professor, SeoulTech

Currently, foreign participation in Korea’s virtual asset market is effectively prohibited due to a 2017 administrative guidance from financial authorities. This vague “shadow regulation” exacerbates mismatches between FX and capital market regulation. To strengthen Korea’s global competitiveness, we must remove the dual barriers of foreign participation bans and restrictions on overseas expansion. Regulatory clarity and alignment with global standards are urgently needed. Practical solutions such as non-face-to-face real-name verification must be presented. The Special Financial Information Act, which imposes KYC and STR obligations directly on exchanges, is inconsistent with the current ban. Alternatives to consider include revoking the administrative ban, allowing institutional investors to open individual accounts, and enabling individual foreign investors to participate indirectly via "linked omnibus accounts" between domestic and qualified overseas exchanges. Applying capital market and FX-style monitoring and reporting systems to virtual asset service providers is worth exploring.

• Discussant: Seo-Hee Han, Attorney at Law, Barun Law LLC

Allowing foreigners into the Korean virtual asset market could increase foreign capital inflows. With today’s established AML technologies, foreigner onboarding is technically feasible. A paradigm shift in the financial authorities' perception and the provision of clear guidelines are urgently needed. Non-face-to-face real-name verification and issuance of real-name deposit/withdrawal accounts for foreigners should be enabled. If real-name accounts are difficult, then trading via USDT or USDC should be permitted. Use of standing agents and the implementation of non-face-to-face authentication systems for foreigners should be considered. For overseas expansion, allowing order book sharing with foreign subsidiaries under proper AML compliance and financial reporting could be a viable strategy.

• Discussant: Hae-Boong Lee, Director, Dunamu

We must attract "good money" while blocking "bad money" in the virtual asset market. Regulatory clarity and predictability are essential to managing global capital flows. As seen in the U.S. and elsewhere, Korea must clarify details under AML/CFT and FX laws. The issue is not a lack of regulation but lack of clarity. Based on the principle of reciprocity, we should consider gradually allowing investors from jurisdictions that meet FATF AML/CFT standards. A phased approval process, including regulatory sandboxes, could also be examined. Order book sharing with overseas partners should be allowed under certain conditions to attract foreign investors.

• Discussant: Jung-Ki Yoo, Attorney at Law, Bithumb

Korea is the only country where even legally residing foreigners cannot trade virtual assets. The AML infrastructure has significantly improved since the 2017 restriction. In light of the amended Special Financial Information Act and the upcoming User Protection Act, we must reconsider whether banning foreign participation is still a valid AML strategy. The current policy accelerates capital outflow to foreign exchanges. A more flexible, risk-based approach is needed. For overseas expansion, clear guidelines should be swiftly established, similar to the monitoring regime applied to financial investment companies.


□ Session 3: Corporate Participation in the Digital Asset Market and Spot ETF Issues
(Session Chair: Jong-Baek Park, Attorney at Law, Bae, Kim & Lee LLC)

• Presenter: Kyung-Eun Ryu, Professor, Korea University Law School

Corporate participation in the digital asset market can boost market credibility and attract global capital. However, at stage two, clearer definitions of professional investors, AML enhancement, and overseas monitoring systems are needed. At stage three, accounting, taxation, and disclosure frameworks must be in place to allow broader corporate participation. AML remains the top priority. Current law regulates fiat-to-fiat flows, but not crypto-to-fiat. Measures to prevent money laundering via shell companies must be developed to expand eligibility to general corporations.
For spot ETFs, the following prerequisites must be addressed:① Index computation methods and participant criteria,② Derivative-linked redemption mechanisms,③ Investor protection and sales regulations under the Financial Consumer Protection Act (e.g., suitability, duty to explain), and④ Capital gains and ETF trading tax regimes.If approved, institutional investment is expected to increase. However, a crash in the underlying asset could trigger bank runs and financial instability. Therefore, a comprehensive structure covering index calculation, custody/trust, liquidity provision, derivatives hedging, investor protection, and taxation is required.

• Discussant: Sung-Jin Kim, Director, Financial Services Commission (Virtual Asset Division)

Globally, regulatory trends are shifting from mere user protection toward reducing uncertainty and fostering innovation. Korea is also reviewing ways to allow corporate participation in stages to develop a healthier ecosystem. Regulatory alignment with Hong Kong, Singapore, the EU, and the U.S. is necessary. The Virtual Asset Committee can move quickly on matters not bound by law. Recognizing that there is no legal basis for the previous ban on corporate participation, Korea began allowing nonprofit entities in June 2025 and plans to release guidelines for professional investors later this year. While initial design focused on domestic corporations, there’s no reason to exclude foreign companies registered as professional investors. Spot ETF discussions must await amendments to the Capital Markets Act and development of risk management measures. Foreign and domestic spot ETF issues must be distinguished—distribution of foreign-approved products via Korean securities firms differs legally from domestic creation. Several phased scenarios are possible.

• Discussant: Se-Woon Hwang, Senior Research Fellow, Korea Capital Market Institute

Institutional participation contributes to risk diversification in stable markets but may amplify volatility in crises—hence, caution is needed. The corporate account debate is linked to the foreign account issue. Foreign accounts may even be simpler to manage. AML considerations apply equally to both. Foreign exchange issues, disclosures, accounting, and tax management systems must be incorporated. Swift action is necessary. Expanded futures listings on KRX may be required to support hedging. Investor protection measures such as strengthened suitability/explanation duties under the Financial Consumer Protection Act, or Hong Kong-style education/testing systems, should also be examined. For spot ETFs, minimizing NAV deviation between single-price domestic exchanges and multi-price foreign exchanges is essential. This requires pre-defining roles for asset managers, market makers, and authorized participants (APs), and determining whether cash or in-kind redemptions are to be adopted.
 

On July 17, Lee & Ko held a seminar titled "Recent Developments in Soil Contamination Regulations and Corporate Strategies." The event opened with welcome remarks by Mr. Yoon Seop Lee, Senior Advisor at Lee & Ko and former Director General of Planning and Coordination at the Ministry of Environment.

Mr. Young Soo Shin, Director at the Ministry of Environment, presented proposed amendments to the Soil Environment Conservation Act, including stricter penalties for non-compliance with remediation orders and a shift toward risk-based assessments.

Ms. Min-joo Choi, Executive Director at Dong Myung Ent. Co., Ltd., shared practical insights on soil remediation, highlighting off-site treatment trends and recommending active use of soil environment assessments prior to land transactions.

Attorney Sangmin Kim of Lee & Ko reviewed recent court rulings, emphasizing that companies may be held liable for remediation costs even without formal administrative orders, and advised seeking expert input, especially in cases involving natural contamination.

The seminar concluded with a panel discussion and Q&A session. Lee & Ko encouraged companies to stay informed of regulatory changes and manage soil contamination risks proactively.

Lee & Ko's IP Group held a joint seminar on Thursday, July 10, 2025, with AIK Law Office from Japan, titled “Recent Trends and Issues in Japanese IP Practice.” 
 
Together with AIK Law, Lee & Ko’s IP Group has regularly hosted joint seminars focusing on how Korean companies can practically respond and what to consider when IP disputes or acquisition matters arise in Japan. The seminar was moderated by Attorney Yikang Kang (Lee & Ko).
 
For the first session, Attorney Makoto Hattori (AIK) presented on Patent Infringement Litigation Practice in Japan. Mr. Hattori emphasized that Japanese courts have recently prioritized procedural scheduling, and provided detailed statistics on average trial durations, rulings, and damages awarded in IP cases. Attorney Heon Lee (Lee & Ko) presented next on Korea’s patent infringement procedures and practical aspects from a comparative law perspective.

In the following session, Patent Attorney Shimako Kato (AIK) presented on patent invalidity procedures and practice in Japan, noting that Japan’s patent invalidation rate is significantly lower than Korea’s, reflecting a focus on protecting patent holders. Following Ms. Kato’s presentation, Attorney Ilkwon Kim (Lee & Ko) provided a comparative review of Korea’s trial decision system and relevant Supreme Court decisions. 
 
For the third session, Attorney Emiko Maki (AIK) presented on protection of trade secrets in Japan, detailing the expanded scope of presumed trade secret infringement under the April 2024 amendment. Attorney Soojeong Kang (Lee & Ko) then discussed a comparative law review of Korea’s Unfair Competition Prevention Act in view of the Japanese law.
 
For the last session, Attorney Chitaka Iwama (AIK) presented on recent notable patent cases in Japan. Ms. Iwama gave detailed presentations on Japanese Supreme Court’s landmark Dwango case, Japanese IP High Court’s case related to industrial applicability of medical practice invention, and Japanese district court’s case related to FRAND rate setting in Japan for standard-essential patents. Attorney Ahhyun Nam (Lee & Ko) then examined Korean case precedents in the comparative law perspective. 
 
Lee & Ko’s IP Group is composed of over 140 IP experts, making it the largest IP dedicated team in Korea. In addition, professionals with deep expertise across diverse fields collaborate closely to provide swift and efficient legal services. 
 

Lee & Ko hosted a seminar titled ‘Carbon Neutrality: Changes in the Carbon Emission Trading System and Corporate Response Strategies’ on Wednesday, June 25.

The seminar drew significant attention from executives and employees in charge of climate change, including companies, associations and public institutions. This heightened interest reflects expectations that climate response policies will be pursued with greater intensity under the newly inaugurated government.

The seminar, moderated by Lee & Ko advisor Hee-jong Yoon, began with welcoming address by senior advisor Youn-Seob Lee, followed by a speech by Denis Machnik, senior advisor at the Copenhagen Climate Center of the United Nations Environment Program (UNEP).

Ma-Roo Kim, Director of the Climate and Economy Division at the Ministry of Environment, stated, “We will develop and implement various alternatives to address operational challenges in Phase 4 of the Emission Trading System, which is scheduled to take effect on January 1, 2026."

Afterwards, in each session, See-hyung Lee, Director of the Carbon Neutrality Division at the Korea Chamber of Commerce and Industry, discussed the achievements, limitations, and future tasks from the introduction of the Emission Trading System. ECOEYE Sang-Sun Ha presented information on the trends of Article 6.4 of the Paris Agreement and strategies for promoting international reduction projects. Lee & Ko attorney Yun- Sung Kim outlined practical corporate measures for climate change response, including contract management and supply chain strategies.

Following the presentations, a lively question-and-answer session addressed specific concerns about the operational direction of Phase 4 of the Emission Trading System.

Lee & Ko’s Environment Team reaffirmed its commitment to supporting companies in achieving carbon neutrality and sustainable growth through proactive responding to climate change strategies.