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Expertise

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Regulatory Compliance

Compliance risk is increasingly becoming a real and substantial risk for management across all types of industries and companies in Korea. Corporate compliance has come into the forefront of the social consciousness in Korea over the recent years; the laws and regulations for corporate compliance is becoming increasingly complex.

Furthermore, the surge in the number of whistleblowing incidents coupled with the ever-increasing speed of information flow and the formation of public opinion, companies in Korea are finding that any compliance violation can quickly bite back to impact the company’s image, standing and business.

As demonstrated by recent headline cases – such as the humidifier disinfectant case, the radon-laden bed scandal – have vividly illustrated that the violation of consumer regulations are capable of leading to substantial civil damages liability for entire consumer groups, as well as fatal administrative sanctions such as the cancellation of business licenses, and criminal punishment for those corporations and employees and officers found to be responsible.

Lee & Ko provides an integrated compliance legal service for various industries across a wide range of practice areas, from fair trade, tax/customs, employment/labor, environment, industrial safety, personal information, automobile to defense. Our services encompass :
  - Interpretation of industry laws and regulations
  - Ensuring compliance with relevant regulatory laws
  - Development and implementation of compliance systems and employee training programs
  - Conducting internal investigations for compliance violations
  - Responding to investigations by regulatory authorities 
  - Responding to civil, criminal, administrative litigation cases

In order to provide top-tier and comprehensive legal services in the most efficient way, Lee & Ko has experts in each industry as well as lawyers and experts from the Supreme Prosecutors’ Office, the police, the Audit Office of Korea, the National Tax Service, and the Korea Customs Service. 
 
Expertise
[Competition Law Compliance]
  • Pre-diagnose risks related to fair trade laws: review business procedures, employee interviews, key risk identification, and mock field survey
  • Establish guidelines and compliance systems to prevent the violation of industry laws and ordinances based on the comprehensive pre-diagnosis: create guidelines for contacting competitors, agency transactions, subcontracting transactions, and draft standard contracts, etc.
  • Advise and provide training on the implementation and operation of autonomous compliance check procedures: establish internal supervision systems and document management system,  appointment compliance officers, etc.

[Tax Compliance]
  • General advance tax diagnosis: Through due diligence on accounting practices and tax affairs of enterprises, it is possible to identify tax risks and suggest alternative tax practices to minimize risks
  • Pre-audit diagnosis: Identify tax risks through due diligence based on mock audits, suggest alternative practices to minimize risk and additional tax liabilities, and educate employees on how to respond to tax investigations
  • Outbound investment tax-related advice: Consultation on compliance with U.S. tax laws, and present alternative investment structures, transfer pricing / BEPS related consulting, and advice on QI Agreements between Korean financial institutions and the US Internal Revenue Service 

[Customs Compliance]
  • Preliminary diagnosis on compliance with customs laws, foreign trade laws, foreign exchange transaction laws, other industry-specific laws and ordinances on import and export of specific goods (Pharmaceutical Affairs Law, Medical Equipment Law, Food Sanitation Law, and Radio Waves Act, etc.), and WTO rules and FTA
  • Establish compliance systems and guidelines as well as employee training programs prepared to prevent violations
  • Customs examination advice: Proactively diagnose risks associated with customs inspection items (transfer price, item classification, reduction and refund, customs legality, and indication of origin, etc.) and provide tailored strategy considering the customs policy of the Korea Customs Service (preferential treatment to companies that pay tax in good faith, tendency for frequent and regular surveys, and increased intensity of investigations for high risk groups, etc.)
  • Advice on proof of origin rules under the FTA: Conduct preliminary inspections to prepare for investigations. Review effectiveness of on-site responses, advise on the validity of the existing proof and certificates of origin 

[Labor Compliance]
  • Establish compliance systems and guidelines for violation based on preliminary analysis of risks in the labor management practices of the company
  • Labor standards compliance: Consult on the validity of the policy for maximum working hour limits, annual leave, appropriateness of extended/night/holiday allowances, scope of ordinary wages, compliance with minimum wage, and advice on establishing and operating appropriate wage structures
  • Consultation on the protection of dispatched workers: consult the labor and remuneration practices regarding subcontractors and service company personnel (disguised contract / illegal dispatch)
  • Equal Employment Opportunity and Work-Family Relations Support Law: Advice on internal investigation / discipline procedures on sexual harassment in the workplace
  • Consult on collective bargaining procedures, responses to union strikes and other general labor relations advice 

[Privacy Compliance]
  • Establish compliance system and guidelines for data protection and privacy laws based on tailored analysis into the pertinent personal information protection laws for the company (Personal Information Protection Act and GDPR, etc.)
  • Consultation on the entire life cycle of personal information processing for FinTech and IoT businesses 
  • Consult on response to regulatory authorities and handling of civil/criminal cases in the event of personal information leakage accidents 

[Environment, Health, and Safety Compliance Service]
  • Consult on the interpretation of the highly complex and stringent environmental laws and regulations following the strengthening of the environmental, health, and safety (“EHS”) regulations and enactment of the Law on Registration and Evaluation of Chemicals (“K-REACH”)
  • Establish EHS compliance systems and guidelines to prevent against the violation of environmental laws based on preliminary diagnosis and compliance risk assessment 
  • Establish a manual for preventing industrial accidents
  • Prepare company for responses to investigations and sanctions by regulatory agencies such as the Ministry of Environment 

[Healthcare Compliance Service]
  • Establish compliance systems to prevent violation of healthcare related laws based on tailored diagnosis of the compliance risks of the particular healthcare company (pharmaceutical, medical device, medical, food / cosmetics)
  • Establish compliance policies and provide employee training 

[Financial Compliance Service]
  • Establish compliance systems to prevent violation of the laws and regulations governing financial institutions, which are increasingly becoming complex with the introduction of international regulations and added compliance requirements therefrom
  • Advise on anti-money laundering issues, personal and credit information protection, and financial consumer protection laws
  • Support to compliance officers and internal audit departments 
  • Advise on new financial products and transaction methods, such as cryptocurrency and online and virtual financial trading platforms, etc. 

[Defense Compliance Service]
  • Provide advice on compliance with the Defense Business Act, especially in response to the strengthened regulations in the defense sector and international regulation trends
  • Establish tailored compliance systems and guidelines and provide employee training to prevent violation of compliance requirements 
  • Consult on the establishment of cost certification procedures and policies for the selection and disengagement of defense companies and defense supplies
  • Conduct mock investigations and propose measures to minimize the risk of administrative sanctions and criminal penalties and advise on preventing recurrence of non-compliance incidents 

[Internal Investigation Service]
  • Collect and review emails and accounting materials stored in company’s servers, PCs, laptops, and mobile phones, etc.
  • Interview whistleblowers to determine credibility of report and establish specific directions for investigation, interviews employees involved, and confirm facts about external parties when necessary 

[Forensic Service]
  • Forensic team composed of experts who have been in charge of advanced investigations in the Supreme Prosecutors’ Office, the police, the Fair Trade Commission, the Financial Supervisory Service, and the Board of Audit and Inspection conducts  extractions and analysis of digital data using latest techniques
  • Extraction, restoration, and analysis of digital data such as files / emails stored in PCs, mobile phones, and external storage media
  • Analyze fraud / tampering of documents
  • Analyze file timelines and behavior of digital device users
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Major Cases
  • Provide various legal opinions on laws and regulations applicable to numerous domestic and foreign companies
  • Support establishment of fair trade compliance system for various domestic and foreign companies
  • Establish guidelines on counter measures against the authority’s field investigation 
  • Analyze tax risks and propose alternatives for domestic subsidiaries of foreign pharmaceutical companies
  • Analyze risk for foreign manufacturers relating to tax advice and BEPS / transfer price 
  • Consultation on voluntary correction based on preliminary diagnosis and analysis for customs examination for various companies
  • Consult on legality of internal rules and actual practice on labor and employment and propose improvement thereon 
  • Establish compliance system to prevent unfair labor practices and for legitimacy of labor relations
  • Consult on legality of internal rules on recruitment procedures and propose improvement thereon for large public corporations
  • Consult on establishment of countermeasures against requests for submission of personal information by government agencies
  • Consult on establishing GDPR compliance system
  • Consult on licensing analysis of chemical substances and internal operation procedures related to chemical handling for medical companies
  • Establish internal compliance system related to chemical sales and review internal rules and propose improvement plans for chemical handling 
  • Advise on establishment of compliance system for Volcker Rule
  • Support various companies for internal investigation, monitoring service, and employee compliance training
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Key Contacts
Recent Accolades