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LIN News

LIN Professionals’ External Appointments for Q1 2025

Recent external appointments of LIN’s professionals are as follows: Attorney Tae Eon Koo Appointed as a Steering Committee Member of the AI Innovation Committee of the Federation of Korean Industries Tae Eon Koo, an attorney at LIN, was appointed as a steering committee member of the AI Innovation Committee of the Federation of Korean Industries (FKI) on March 25, 2025. The AI Innovation Committee was established with the goal of identifying policies for the innovation and widespread adoption of AI technology. Amid the rapidly evolving global competition for AI leadership, the committee is tasked with collecting opinions from the domestic industry and conveying them to the National Assembly and government. Koo will contribute to the operation of five subcommittees, including Policy, Talent & Infrastructure, Governance & Standards, and Future Growth, in order to further enhance the committee’s initiatives for substantive institutional improvements, and will do his best to create an ecosystem where companies can actively utilize AI to bolster competitiveness across the industry as a whole. Attorney Young Hoon Kim Appointed as an Independent Director and Chairman of the Audit Committee at Hanmi Science Co., Ltd. On March 26, 2025, Young Hoon Kim, an attorney at LIN, was appointed as an Independent Director and Chairman of the Audit Committee of Hanmi Science Co., Ltd. As the holding company of Hanmi Pharmaceutical Group, Hanmi Science has enhanced the development potential of the Group based on the management philosophy of respecting human dignity and creating value, and has achieved continuous growth through collaborations with various global pharmaceutical companies. In addition, it has played an important role in supporting the Group's stable development of new drugs and expanding the Group’s strategic initiatives to become a truly global pharmaceutical company. As an independent director of Hanmi Science, Kim will work diligently during his term to help the company solidify its identity in new drug development and emerge as a global healthcare company. Attorney Eung Jun Jeon Appointed as a Member of the 2025 Working Group on Improving the AI Copyright System On March 19, 2025, Eung Jun Jeon, an attorney at LIN, was reappointed as a member of the 2025 Working Group on improving the AI Copyright System 2025 (March 19, 2025 to December 31, 2025). Over the past year, the Working Group has discussed various issues including the development of institutional improvements for using copyrighted works training data, whether and how to disclose AI-learned data, and the criteria for determining copyright infringement by AI outputs, all while striving to improve the relevant legal framework. Continuing his service from 2024, Jeon is dedicated to proactively developing institutional improvements that strike a balance between advancing the development of the AI industry and protecting creators' rights. Attorney Jong Sik Kim Appointed as an Independent Director of Asiana IDT Jong Sik Kim, an attorney at LIN, was appointed as an Independent Director of Asiana IDT on January 31, 2025. Asiana IDT is an IT services company that provides state-of-the-art IT solutions and services to help clients generate revenue and strengthen their competitiveness, leveraging its global network, differentiated technology, as well as top-tier professionals with accumulated project experience and know-how in various industries. As an Indipendent Director of Asiana IDT, Kim is committed to helping the company enhance its clients' business competitiveness with more differentiated technologies and services and contribute to creating a more convenient and prosperous society. Attorney Sung June Park Appointed as Legal Counsel to Korea Midland Power Co., Ltd. On January 6, 2025, Sung June Park, an attorney at LIN, was appointed as Legal Counsel to Korea Midland Power Co., Ltd. (KOMIPO) (January 24, 2025 to January 23, 2027). To deliver cleaner and healthier energy to the public, KOMIPO has upgraded its thermal power plants with world-class environmental equipment to operate safe facilities free from concerns about fine dust and environmental pollution, and has also taken the lead in promoting Korea's energy transition through the continuous development of various renewable energy sources. As Legal Counsel to KOMIPO, Park will leverage his expertise to help the company build upon its know-how and experience at the forefront of the energy industry, driven by innovative planning and a spirit of challenge, while continuing to a more prosperous and healthier life for the public. Attorney Seok Lee Appointed to the Steering Committee of the Gyeonggi-do Carbon Neutrality Support Center On March 25, 2025, Seok Lee, an attorney at LIN, was appointed as a member of the Gyeonggi-do Carbon Neutrality Support Center Steering Committee (January 1, 2025 to December 31, 2026). The Steering Committee was established to deliberate on matters necessary for the management and operation of the Center in accordance with the “Guidelines for Designation and Operation of Carbon Neutrality Support Center” and to discuss efficient operational measures. Gyeonggi-do operates the Carbon Neutrality Support Center to build a foundation for carbon neutrality with the goal of reducing carbon emissions by 40% from 2018 levels by 2030, and to support cooperation with the national and local governments for the efficient execution of its annual business plans. As a member of the steering committee, Lee will deliberate on the efficient management and operational strategies for the center to promote Gyeonggi-do's carbon neutrality and green growth initiatives, and will review the progress of the annual business plan and seek ways to improve it to the best of his ability. Chang Hwan Shin, US Attorney, Appointed to the Board of Directors of the Korea Copyright Protection Agency Chang Hwan Shin, a U.S. attorney at LIN, was appointed to the Board of Directors of the Korea Copyright Protection Agency (KCOPA) on February 4, 2025. The KCOPA was established to support the formulation and enforcement of copyright protection policies, deliberate on matters related to copyright protection, and conduct projects necessary for copyright protection, thereby contributing to the enhancement and development of culture and related industries. As a director of the KCOPA, Shin will do his best to help the organization grow into a global organization specializing in copyright protection that builds a safe foundation for the cultural industry by fostering a healthy ecosystem and more firmly upholding the value of creativity. Advisor Se Yong Um, Appointed as a member of the National Assembly Legislative Support Committee (Political Affairs Division) On February 25, 2025, Se Yong Um, an advisor at LIN, was appointed as a member of the National Assembly's Legislative Support Committee, where he will serve in the Political Affairs Division for two years, focusing on the Capital Markets Act. The National Assembly Legislative Support Committee, composed of 166 members, provides legislative advice to lawmakers on matters, including drafting bills and reviewing administrative legislation. Having previously served as a member of the Capital Markets Act Enactment Task Force under the former Ministry of Finance and Economy and as a member of the National Assembly Legislative Support Committee (Finance and Economy Division), Dr. Um has been reappointed to the Committee (Political Affairs Division) and will provide key advisory services on the legislative process for capital markets. Kwang Min Nam, CPA, Appointed as Chairman of the Audit Committee of Independent Directors of Hwaseung Industries, a KOSPI-listed Company On March 25, 2025, Kwang Min Nam, a CPA at LIN, was appointed as Chairman of the Audit Committee of Independent Directors of Hwaseung Industries, a company listed on the KOSPI market. As a representative company of Hwaseung Group's sports fashion ODM and fine chemical businesses, Hwaseung Industries has enhanced the future value of human life based on its top-tier quality competitiveness and continuous innovation. Nam is committed to enhancing the rights and interests of shareholders by ensuring the company maximizes its group’s value through transparent and rational management. In addition, he will continue to work diligently to help the company continue to innovate and become a trusted company that realizes future value.

2025.07.03

Media

[LIN] Employment structures in South Korean Labour Law

In Korean, the phrase for forming a relationship is “gwanggye-reul maetneunda”, which literally means “to tie a relationship”. In contrast, ending a relationship is expressed as “gwanggye-reul kkeuneunda”, or “to cut a relationship”. This linguistic contrast – to cut rather than a more symmetrical term like “untie” – offers a glimpse into the emotional and social complexity surrounding the dissolution of relationships in Korean culture. While forming a bond is often harmonious and mutual, ending one can be abrupt, painful or even adversarial, hence the expression of “cutting” rather than “untying”. This idea carries over to employment relationships and, in particular, the concept of dismissal. Legal grounds for dismissal (1) Managerial necessity. South Korean labour law recognises two primary forms of dismissal. The first is dismissal for managerial reasons, governed by article 24 of the Labour Standards Act. To dismiss an employee on this basis, an employer must demonstrate “urgent managerial necessity”. Procedural requirements include efforts to avoid dismissal (such as wage or hour adjustments), fair and reasonable selection criteria, and good-faith consultation with a majority employee representative or labour union. Discriminatory practices, particularly on the basis of gender, are strictly prohibited in the act. Case law interprets “urgent managerial necessity” narrowly. It applies only when the company is facing a severe crisis such as business closure, bankruptcy or liquidation that threatens its overall survival. Moderate financial difficulties or department-specific restructuring generally do not meet this threshold. Objective, credible evidence must show that the company is unlikely to recover or improve its performance in the foreseeable future. (2) Employee misconduct. The second category is disciplinary dismissal, under article 23 of the Labour Standards Act, which prohibits dismissal without “justifiable cause”. Courts define this as misconduct that renders continued employment unreasonable under prevailing social norms. Common examples include : Criminal conduct (e.g., assault, theft, sex crimes); Willful harm to the employer (e.g., embezzlement, breach of trust); Chronic absenteeism or unauthorised departures; and Fraudulent behaviour during recruitment (e.g. submitting false credentials). (3) Poor performance. Poor performance may constitute justifiable cause, but only under stringent conditions: Internal rules or policies, such as Rules of Employment, must explicitly recognise poor performance as grounds for dismissal : Evaluation criteria must be objective and fairly applied; The employee’s performance must fall significantly below minimum expectations; and The employee must have been given a reasonable opportunity to improve, with little prospect of recovery. While courts are gradually becoming more receptive to such cases, South Korean law remains far more restrictive than common law jurisdictions that permit “at will” termination. Union protection Dismissal on the grounds of union activity raises serious legal concerns. While misconduct such as property damage during union-related activities may warrant disciplinary action, such conduct must be clearly distinguishable from lawful union participation. Under the South Korean Constitution and Trade Union and Labour Relations Adjustment Act, employees are guaranteed the rights to organise, bargain collectively and take collective action. Any adverse employment action, including dismissal, taken solely in response to a lawful union activity constitutes unfair labour practice and may expose the employer and responsible individuals to criminal liability. Employers must be especially cautious to avoid any appearance of retaliation against union involvement. Fixed-term employment Under article 4 of the Act on the Protection of Fixed-Term and Part-Time Employees, the standard limit for fixed-term employment is two years. Beyond this, the employee is considered a regular, indefinite-term employee, unless the role falls within one of the statutory exceptions, such as elderly workers, professionals, or temporary replacements. Employers must carefully assess whether a particular fixed-term arrangement qualifies as an exception. Extending a contract beyond two years without such qualification risks automatic conversion to regular employment, subject to all associated protections, including the requirement of just cause for dismissal. Indirect, flexible arrangements In response to the strict regulations on employee dismissal, many companies turn to more flexible employment structures such as outsourcing, freelancing and in-house subcontracting. Estimates suggest that one to three million workers are currently engaged under such alternative arrangements. The labour law draws a strict distinction between sub-contracting and dispatch work: Sub-contracting involves outsourcing a specific task or result; and Dispatching involves the supply of manpower. The Act on the Protection of Dispatched Workers limits dispatch work to certain roles and caps its duration at two years. If an arrangement is classified as illegal dispatch, the principal employer may face criminal penalties and be required to hire the worker directly. Furthermore, if there is discriminatory treatment in working conditions, such as disparities in salary between sub-contracted workers and regular employees performing the same or substantially similar tasks, the employer may be held liable for the retroactive payment of the wage difference. On the other hand, to maintain a legally valid sub-contracting relationship: The sub-contractor must be operationally independent, with its own workforce and management systems; Work must be assigned, supervised and evaluated by the sub-contractor, not the main contractor; and The main contractor may evaluate the outcomes of the sub-contracted work, but must not interfere with how the individual sub-contracted workers carry out their tasks. In practice, sub-contracted workers often work side-by-side with regular employees, making strict separation difficult. Even indirect control such as giving instructions through internal communication tools, or real-time monitoring, may result in reclassification as an illegal dispatch under the labour law. Freelancers, platform workers Historically, freelancers included individuals like delivery drivers, insurance agents, golf course caddies and private tutors. But in recent years, the rise of the IT industry and platform economy has dramatically expanded freelance work into areas like web development, digital design and remote consulting. A key legal issue is control and supervision. If a platform dictates work schedules, scope and payment, the freelancer may be reclassified as an employee. In a landmark 2024 Supreme Court decision, a ride-hailing platform driver was found to be an employee due to its control over his working hours, rules and compensation. Legislative efforts are underway to extend full labour rights – including unionisation and collective bargaining – to platform workers. Practical issues, strategies Despite comparatively rigid labour regulations, employers have a variety of lawful options to navigate the employment relationship. Probationary period. Employers may retain discretion by clearly stating that final employment is subject to a probationary period, typically up to three months. If properly implemented, this provides flexibility in early termination decisions. Voluntary resignation. South Korean courts do not apply the constructive dismissal doctrine as broadly as many Western jurisdictions. If an employee formally resigns, even under subtle pressure, courts generally refrain from reclassifying the resignation as an unlawful dismissal. This provides companies with some latitude in offering voluntary resignation programmes. Conclusion For global companies operating in South Korea, compliance with local labour laws is not only a legal necessity, but also a practical imperative. Encouragingly, access to information and legal support has become more accessible in recent years, with many law firms offering tailored services for foreign-invested businesses. Crucially, building constructive and culturally informed labour management relationships is key. Understanding the values that underpin the employment culture – such as diligence, integrity and mutual respect – can help companies foster stability, trust and long-term success in this market. Please refer to the original article below. Asia Business Law Journal View original article▼ https://law.asia/employment-structures-in-south-korean-labour-law/

2025.05.21