Korea

58
Country starter pack
Business practicalities in Korea
Land and property rights
In principle, foreigners are free to acquire land in Korea
except for specified categories including military facilities,
cultural assets, land set aside for ecological preservation,
and some land on islands required for military purposes.
After a contract for land acquisition is concluded, a
report on the acquisition should be filed to the municipal
governor within 60 days. The process differs depending
on whether the foreign purchaser is a resident (has lived
in Korea for longer than six months) or a non-resident.
Resident foreigners are subject to the Foreigner’s Land
Acquisition Act and the Real Estate Registration Act.
Within 60 days of buying property, they must present the
following documents to the local city, county or district
office (si, gun or gu):
• Certified copy of the purchaser’s alien registration
card
• Registration application and certificate
• Documents certifying causes for registration
• Certified copy of the property registration.
Non-resident foreigners are subject to the Foreign
Exchange Transaction Act. They are required to apply
for a registration number at an immigration office with a
certified copy of the land acquisition report and a copy of
their passport. The following documents are required for
the registration:
• Address certificate
• Registration application and certificate
• Certified copy of the property registration
• Documents certifying causes for registration.
Intellectual property (IP)
The Korean intellectual property (IP) system is advanced
compared to many other countries in Asia. Korean
companies are prolific filers of patent and trademark
applications for inventions and local brands. In general
terms, IP registration and protection in Korea is similar to
Australia. The Korean Intellectual Property Office (KIPO)
is responsible for the registration of trademarks, patents
and designs – all of which can be applied for online.
The KIPO website also provides a searchable patent
database. Foreign businesses that do not have a place of
business in Korea are required to lodge patent, design and
trademark registrations through a Korean IP attorney.
If you are considering exporting to Korea, it is advisable
to contact an IP professional experienced in Korean IP
law and trade to advise on local customs and other laws
regulating imports and trade. Australian IP professionals
can facilitate such contact.
Filing and renewal fees tend to be lower than comparable
Australian fees, but higher than those of many other
Asian countries. Australian applicants should also factor
translation fees into the total cost of filing applications
in Korea, as documents such as patent specifications
must be filed in Korean. There are various methods for
registering intellectual property, depending on its type. IP
Australia’s website outlines the following information for
Australian businesses operating in Korea:
Trademarks: Korea follows a first-to-file rule for obtaining
trademark rights. This means the first person to file a
trademark application will generally have a priority over
a prior user of the mark in Korea. Trademark applications
should therefore be filed as soon as possible. Three
dimensional trademarks are protected in Korea. However,
other non-traditional marks such as sounds and smells are
not yet able to be registered. Korean Customs provides
cross-border measures for the protection of registered
trademarks.
Trademark registrations may be removed if they are not
used for a period of three or more consecutive years
after registration. However, trademark protection is
granted for 10 years from the date of registration and
is renewable. Foreign and domestic authors can secure
copyrights in Korea by registering them with the Ministry
of Culture and Tourism. KIPO, under the umbrella of the
Ministry of Knowledge and Economy, is the government
body regulating and administrating matters to protect
intellectual property rights. In September 2010, KIPO
launched the Special Judicial Police Squad to more
effectively crack down on counterfeit goods.
Patents: Two forms of patent protection are available in
Korea: patents (with a 20 year term) and utility models
(with a 10 year term and a lower level of inventiveness
required). Certain types of subject matter are not
patentable in Korea.
Designs: Korea offers two categories of design applications:
normal examination designs (substantive) and nonexamination
designs (non-substantive). Non-examination
designs are restricted to two-dimensional products such as
wrapping paper and/or those with a short life cycle, such as
fashion-dependent goods like clothing.
Plant varieties: Korean IP laws allow for the protection
of plant variety rights for a period of 20 or 25 years,
depending on the type of plant.
Personal information protection: A Personal Information
Protection Act (PIPA) became effective in Korea on
September 30, 2011. Under PIPA, all companies,
organisations, governmental agencies and people that
process personal information when conducting businesses
must comply with the protective measures prescribed
in the PIPA. There is generally no minimum threshold
on the size of the entity covered by PIPA requirements.
One of the key principles under PIPA is that the entity
processing the personal information must disclose certain
matters to the information owners and obtain their
consent prior to the collection, use and provision to third
parties of their information. Non-compliance may subject
a company to administrative penalties, civil liability and
criminal penalties.