top of page

(News) "US Startups Look To South Korea Amid Country’s COVID Success"

2020. 8. 12.

The U.S. media are generally giving positive comments to how Korea has been dealing with COVID-19. Many people around me also said that it seemed to have saved many lives in Korea because Korea has dealt with COVID-19 well in the beginning. In fact, every time I felt proud, I also thought, 'Wouldn't you think that Korean government had infringed on people’s freedom too much if you know how Korea has dealt with COVID-19?’ But I just smiled and said, "So many people are going back to Korea from the United States."

It is not just international students who enter Korea from the U.S. There are U.S. startups have already entered or are considering entering Korea. Korea's response to COVID19 has given rise to the image of a country with the stability of its crisis management system, which has made Korea an attractive place of business in the current global pandemics especially for startups that need to take the stability of the business market seriously.

Korea's economy size and the stability of its crisis management system are certainly attractive to startups. Also, there are support system for startups and benefits for foreign investment in Korea. However, I want to emphasize one thing that startups who are especially willing to run innovative business or have creative technologies should consider before moving to Korea. The government regulatory system.

I think the government regulatory system is very important for startups. Unlike the U.S. has adopted a negative regulatory system, Korea government has adopted a positive regulatory system. To put it simply, in a positive regulatory system you can only do what is stipulated that it can. In other words, anything cannot be done before the government and the law specifically allow. On the contrary, in a negative regulatory system you can do anything other than what is stipulated that it cannot.

Therefore, basically under a positive regulatory system, it is not easy to run innovative businesses. If innovative business is not regulated by existing laws, it will have to wait until regulations specifically allow the business. Also, a positive regulatory system is more likely cause conflict and collusion of various interests.

The Tada case is a good example. The CEO, who was recognized of the innovative business (ride-hailing service business) and accompanied the President Moon’s visit to North Korea, is currently undergoing a criminal trial for violating related regulations (he was acquitted in the first trial, but the prosecution has appealed), and the National Assembly passed a controversial bill that dealt a severe blow to ride-hailing service Tada because of the strong opposition of people in the existing business (taxi business). Apparently, the Tada ended its main service business and the investors in Tada stopped investments due to “distrust of South Korea government and parliament”. (

Thus, if U.S. startups want to move to Korea, the startups have to check whether it can be covered by regulations that are already allowed. Sometimes, a complicated and difficult process is required, such as legal reviewing on related Korean laws and practice for the business in advance and having to go through a consultation and persuasion process with relevant government agencies if necessary.

Nevertheless, Korea is still an attractive country for U.S. startups in many aspects. For U.S. startups to avoid a setback when moving to Korea, they should meet a lawyer who have extensive experience in Korean law, regulatory practice and dealing with government agencies from the planning stage to make detailed plans for the success of the business in Korea.

최근 게시물

전체 보기

미국 기관/기업에 대한 한국 노동법의 적용 이슈 및 육아휴직 관련 부당전직에 대한 한국 대법원 판례 소개

K-Law Consulting이 있는 LA에는 많은 한국 정부기관, 공기업, 대기업, 스타트업 등 (“미국 진출 기관/기업”)이 진출해 있습니다. 이와 같은 미국 진출 기관/기업은 한국에서 직원을 파견받거나 현지에서 직원을 채용하게 됩니다. 이러한 미국 진출 기관/기업의 노동 이슈에는 한국 노동법이 적용될까요, 아니면 미국 노동법이 적용될까요? 얼핏 생각되

미국법원에서 판결을 받아 한국에서 집행할 수 있는지에 관한 주요 대법원 판례 변경

최근 상담하여 수임한 Cross-border 케이스에서 중요하게 논의되었던 이슈에 대한 한국 대법원 판례를 소개하고자 합니다. 해당 케이스를 간단히 소개하자면, 미국회사는 한국회사를 상대로 대금지급청구 소송을 미국법원에서 하고 싶습니다. 그런데 한국회사의 재산은 모두 한국에 있는 상황이라, 추후 미국법원 판결이 확정되면 한국에 가서 집행을 해야 합니다. 여

(미국) 위구르 강제노동금지법의 시행에 따른 미국 내 사업자에 대한 시사점

미국에서 무역업을 하시는 분들에게 중요한 법이 얼마 전 시행되었습니다. 많은 분들이 이미 아시고 계실 것으로 보이지만, 그 의미가 매우 중요하기 때문에 해당 법의 핵심과 주요 내용 및 시사점 등을 아래에서 간단하게 정리해보았습니다. 위구르 강제노동금지법이 2022. 6. 21. 시행되었습니다. 본 법의 핵심은 다음과 같습니다. (i) 중국 신장 위구르 자치


bottom of page