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Expertise

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Government Affairs

Corporations, whether based overseas or locally, need to interact with various government agencies when carrying out businesses in Korea. In some cases, they may face difficulties with regulations that appear to conflict with the Constitution of Korea or other laws, are based on laws that do not reflect the reality or are based on erroneous interpretations of the underlying laws.

Although administrative reviews, lawsuits against administrative actions, and constitutional challenges are traditional ways of resolution, corporations may find themselves in conflict with government agencies and incur substantial amount of cost and time in such disputes. Even if corporations are willing to assume those burdens, judicial actions based on the existing laws may not be sufficient to accomplish their objectives. 

Lee & Ko’s Government Affairs Practice Group offers a full range of services related to legislation and interpretation of laws, regulations, and rules of various government agencies as means to resolve difficulties without going through the traditional adversarial processes and in relatively short period of time.

Lee & Ko’s Government Affairs Practice Group consists of a number of former senior government officials and a number of attorneys with work experience at various government agencies, all of whom are familiar with various administrative matters. Such former senior government officials include the former Deputy Commissioner of Fair Trade Commission, the former Deputy Minister of the Ministry of Information and Telecommunication, the former Governor of the Financial Supervisory Service, the former Deputy Commissioner of the National Tax Service, the former Senior Vice-chairman of the Korea Development Bank (government-owned bank), the former Chief Judge of the Administrative Court, the former Director at the Ministry of Government Legislation, the former Director at the Fair Trade Commission, the former Assistant Director at the Ministry of Public Administration and Security, and the former Assistant Director at the Korean Intellectual Property Office.
 
Expertise
Administrative Interpretation (Advanced Ruling)

Vague, conflicting, or omitted provisions in statutes may be clarified through interpretations from relevant government agencies. The most common bases for filing a petition for administrative interpretation are legislative compatibility, legislative intent, interpretation of comparable law in another country and practical necessity. Since municipal agencies, impendent from each other, are charged with the enforcement of laws, obtaining administrative interpretations is effective in minimizing enforcement discrepancies across municipalities and preventing unnecessary disputes.

In 2005, the President Roh’s administration, through a presidential decree, implemented the Rules on Legislative Work whereby the Legal Interpretation Review Commission, composed of two (2) government officials and seven (7) civilian experts, was formed inside the Ministry of Government Legislation. The mandate of the Legal Interpretation Review Commission is to review legal interpretations of government agencies to ensure their accuracy and reasonableness, with the aim of reducing misinterpretations that may have been caused by administrative convenience or interested parties. As a result, administrative interpretations are becoming ever more important as a means to resolve practical issues. In addition, filing for an administrative interpretation has become a useful tool before pursuing a new legislation or amendment. 


Legislation and Amendment

Sometimes, corporations find themselves unable to carry out businesses in Korea because of existing laws or regulations. Although they may turn to traditional means of dispute resolution in cases where constitutionality or legality is being challenged, these means may not be suitable for issues that do not rise to the level of such challenges. In such cases, introducing a new legislation or an amendment to existing laws might be the most effective means of resolution.

Introducing new legislations or amendments requires, above all else, understanding business requirements of corporations, identifying the most appropriate laws to introduce or amend that would accomplish such goals efficiently, researching legislations, legislative intent, or necessity in practice to offer as grounds for introducing new laws or amending any of the existing laws, and discussing them with relevant government agencies for resolution.

Mechanisms for introducing proposals for new legislations or amendments vary depending on the nature of the law in question, i.e., whether it is a statute, presidential decree or something else, and the means of approach also vary from discussing directly with the relevant government agencies, to having the National Assembly, the Anti-Corruption & Civil Rights Commission, the Regulatory Reform Committee or the Ministry of Government Legislation make recommendations to the relevant government agencies and to, with the involvement of the relevant government agencies, having members in the relevant committees of the National Assembly to introduce new legislations or amendments.


Administrative Review and Lawsuit

In some cases, the facts based on which an administrative action has been taken are disputed. However, in many cases, administrative actions are based on erroneous application of laws or application of laws whose constitutionality or legality is challengeable. Although laws, in general, are not subject to administrative reviews or lawsuits, it may nevertheless be subjected to administrative reviews or lawsuits in cases where the constitutionality or legality of such laws is challengeable.

In other words, where administrative interpretation and introduction of new laws or amendments to existing laws are inadequate, administrative reviews and lawsuits would be the last resort. In such cases, Lee & Ko’s Legislative Consulting Group works in close cooperation with the Litigation Group to establish the most appropriate litigation strategy and representation for our clients.
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Major Cases
Administrative Interpretation
  • Lee & Ko’s Legislative Consulting Practice Group has provided administrative interpretations of the:
  • Definition and scope of “non-profit organizations” that are permitted to establish medical institution under the Medical Services Act
  • Ship Act regarding amphibious vehicles for amusement parks that are not governed by the Act 
  • Scope of variable conditioned contracts under the Defense Acquisition Program Act
  • Permissible scope of online advertising for specialty hospitals under the Medical Services Act
  • Grounds for cancellations of passenger transportation terminals under the Passenger Transportation Service Act
  • Legality of imposing import duty on aircraft fuel under the Customs Act
  • Definition of “brokering” under the Automobile Management Act
  • Scope of “medicare benefits,” which may be provided by suspended medical institutions under the National Health Insurance Act

Legislation and Amendment
  • Helped to establish new regulations, pursuant to possible amendments to the Electric Utility Act, regarding costs associated with the underground installations of electric power lines.
  • Advised on amendments to the Tourism Promotion Act so that tourism hotel constructions may be compatible with the School Health Act.
  • Assisted in blocking a proposed amendment to the Enforcement Decree to the Road Act on expanding eligibility for exclusive uses of private roads
  • Provided advice on the Korean Communications Commission’s new notice regarding subsidies for mobile phone handsets 
  • Helped to change the scope of eligibility for private contracts by amendments to the Enforcement Decree of the Urban Development Act
  • Clarified the eligibility of state-owned assets for private contracts that are granted to foreign investment businesses by amendments to the Foreign Investment Promotion Act
  • Provided advice for the government’s plan to amend and promulgate the new Aviation Act
  • Expanded the categories of factories that are permitted to be constructed inside the capital city by amending the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act
  • Amended the regulations on limitations to the doctors’ prescription right under the Standards and Methods of Applying Medicare Benefits for Drugs
  • Advised on various deregulations of broadcast channel operators under the Broadcast Act
  • Advised on bills of subordinate rules for the Special Act on Military Airfield Transfers
  • Advised on proposed revisions to the Special Post Offices Act
  • Advised on amendments to the standards related to the non-manufacturing sector under the Act on Special Cases Concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes
  • Advised on the bills to amend the subordinate rules of Korea’s REACH law and the Toxic Chemicals Control Act

Regulatory Affairs for the National Assembly Legal Practice
  • Advised on various legislative bills in Congress
  • Advised on submission documents related to parliamentary investigations, audits and inspections, and various hearings
  • Provided legal advice for witnesses of the National Assembly’s hearing process 
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Key Contacts