Press Coverage

A year after transferring the store, it opened in the same administrative district... “The royalties must be returned.” The court said, “There is no clause prohibiting competition in the contract… It is difficult to regard it as being in the same commercial area.” If the business transfer agreement was written in the form of a real estate lease contract and there was no separate clause prohibiting competition, the court ruled that it is difficult to apply the duty to prohibit competition under the Commercial Act. On the 13th of last month, the Jeonju District Court ruled that Plaintiff A lost in a lawsuit seeking compensation between restaurant owners A and B. Mr. A signed a contract to take over Mr. B's restaurant in 2020. At that time, Mr. A paid Mr. B about 70 million won, including the existing lease deposit and key money. However, the following year, a problem arose when Mr. B opened a restaurant somewhere else. The menu composition of the two stores overlapped as they sold similar food to the store that was handed over to Mr. A. Mr. A claimed that Mr. B violated the duty of non-competition. This is because at the time of signing the contract, they promised not to open a restaurant with the same menu within the same administrative district. In addition, they emphasized that the key money handed over during the contract process should be returned, saying that such violations led to a decrease in store sales and led to the closure of the business. In response, Mr. B countered that the obligation to prohibit competition under the Commercial Act does not apply because the store was transferred through a ‘real estate lease contract’ rather than a ‘goodwill sales contract’. At the same time, he argued that the names of the two stores were clearly different and that sales would not be affected by opening in a different commercial area from Mr. A. The court ruled in Mr. B's favor. The court said, “The transfer agreement was written in the form of a real estate lease agreement, and the contents did not include matters related to the obligation to prohibit competition,” and added, “There is no evidence of a promise not to open a business in the same administrative district.” He added, “The two stores have to travel 10km by car or bus, so they are a considerable distance away and their delivery areas do not overlap,” and added, “It is difficult to say that they belong to the same commercial district because there are restaurants selling similar menus in between.” In this case, Mr. Attorney Lee Ha-neul of Daeryun Law Firm, who represented the company, explained, “If you look at the transfer agreement, matters such as the transfer of business know-how, succession of business partners and employment, and the obligation to prohibit competition, etc. were not mentioned,” and explained, “This contract should be seen as meaning a key money agreement in which the new lessee pays separately to the existing lessee, not a business transfer contract under Article 41 of the Commercial Act.” Reporter Kim Jong-cheol (jckim99@sportsseoul.com)[View full article] The owner transferred the restaurant and reopened with the same menu... Law: “It is not a violation of duty to compete” (Shortcut)

The court found a driver in his 60s not guilty on charges of hitting and killing a pedestrian who was jaywalking on a deserted road in the dark of early morning. According to the legal community on the 29th, the Namyangju Branch of Uijeongbu District Court found Mr. A not guilty on the 13th of last month on charges of violating the Special Act on Traffic Accidents (death). Mr. A was driving at a speed of 30 km/h on a one-way two-lane road in Gapyeong-gun, Gyeonggi Province, around 1 a.m. last May. He was put on trial on charges of hitting and killing Mr. B, who was jaywalking while driving a medium-sized truck at a speed of 63 km. Mr. B was immediately taken to the hospital, but died while receiving treatment. At the trial, Mr. A pleaded not guilty. Mr. A's side argued, "There was no professional negligence because it was early morning at the time of the accident and we could not have predicted that Mr. B would jaywalk. The speed limit on the road where the accident occurred was 70 km/h, and the speed limit was also complied with." The court accepted Mr. A's argument. This is because the road where the accident occurred can be seen as a one-way street as the two lanes on each side are separated from each other, and there are no permits or commercial facilities nearby, so there are few people and there are no crosswalks installed, so it was difficult to predict that such an accident would occur. Mr. A's legal representative, Yoo Jae-young, attorney at Daeryun Law Firm, said, "The incident occurred in the dark of the night, and Mr. B's clothes were also dark-colored, making it difficult for drivers to recognize pedestrians jaywalking. “It appears that the court took these circumstances into consideration and reached a not guilty verdict.” Reporter Jeong Cheol-wook[View full article] Seoul Newspaper - Driver in his 60s killed after hitting jaywalking pedestrian early in the morning, not guilty (Click here) Herald Economy - Man in his 60s found not guilty after running over and killing a jaywalking pedestrian in the dark of early morning (Shortcut)

Recently, the court sentenced a man in his 70s to 25 years in prison who was accused of sexual assault by raping his daughter. He continued to commit crimes for 40 years, and shocked his daughter's granddaughter by committing sexual assault as well. The court expressed, “It is deplorable that something can happen in our society.” This is a symbolic example that shows the isolation of victims of sexual crimes against relatives. Sexual crimes against relatives are usually not revealed to the public and the reporting rate is low. Since most of the victims are minors, it is not easy to recognize and respond to the crime. This is because they are often economically and emotionally dependent on the perpetrator and are reluctant to raise issues. According to the Korea Sexual Violence Relief Center, 55% of victims took more than 10 years to receive counseling after the initial victimization. Serious crimes are being concealed for a long period of time within the framework of the family. Punishment for sexual assault that occurred between relatives carries a heavy sentence under the criminal law. According to Article 5, Paragraph 1 of the Special Act on the Punishment of Sexual Crimes, if a relative rapes another person through assault or intimidation, he or she will be sentenced to imprisonment for a limited period of 7 years or more. Also, under the Sexual Violence Punishment Act, relative relationships are interpreted much more broadly than in civil law. For example, ‘relatives based on de facto relationship’ are not included in the Civil Code, but are included in the Sexual Violence Punishment Act. This can be easily understood by recalling the case where a stepfather in his 40s committed relative sexual assault against his teenage stepdaughter and was sentenced to 10 years in prison. The statute of limitations for such relative sexual crimes has been gradually expanded. In 2010, when the Special Act on the Punishment of Sexual Violence Crimes was revised, a new regulation was established to ensure that the statute of limitations runs from the date the victim becomes an adult. This takes into account the unique fact that it takes time to report because most victims and perpetrators stay in the same place. Also, in 2012, the statute of limitations for rape and forcible molestation of girls under 13 and disabled women was abolished. In July of last year, an amendment was proposed to expand this to those aged 13 to 19. This trend indicates that social awareness of the seriousness of the crime and the need for victims to recover is expanding further. There are three realistic response measures that victims of relative sexual assault can take. The first thing to do is to apply for a protection order so that you can be separated from the perpetrator. If the court implements temporary measures such as eviction and access ban, the perpetrator will not be able to access the victim's home or other residential areas, and if they violate this, they can be imprisoned for up to one year or fined up to 10 million won. The second option is to receive quick and anonymous legal and medical support through the Sunflower Center or the Women's Emergency Hotline 1366. It is effective in initial response because you can receive follow-up support during counseling, such as △connection with investigative agencies, △connection with medical institutions, and psychological counseling. As a third and final option, a separate civil lawsuit is possible. It is possible to claim compensation for mental damage separately from criminal proceedings. Such procedures require a systematic analysis of legal issues, so it is advisable to receive legal assistance from a sex crime lawyer. Myeong-cheol Kim, a sex crime lawyer at the Daeryun Law Firm, said, "Sexual assault by relatives leaves a psychological trauma on the victim. Even if they take legal action, there are times when they feel guilty in the name of family. However, the longer the silence lasts, the more the victim will remain in pain and the perpetrator is likely to avoid responsibility. Therefore, having the courage to speak out can be the most important first step. “There is,” he advised.[View full article] Relative sexual assault requires courageous legal response to escape the tunnel of concealment (link)

For successful business operation, good ideas, strong capital, and a ‘sustainable management strategy’ are essential. For sustainable management, it is important to comply with legal requirements and prevent risks. In particular, small business owners and small and medium-sized enterprises need to be careful because minor mistakes often lead to fatal results due to relatively insufficient management organizations such as legal affairs, tax affairs, and labor. Therefore, in order to run a business stably, it is necessary to keep in mind the key points that must be checked. First of all, in the process of laying the foundation for your business, you must properly select business registration and legal form. This is because taxes, scope of responsibility, and financing methods vary depending on whether you operate as a sole proprietor or establish a corporation. For example, a sole proprietorship is relatively easy to establish and operate, but there is a risk that business debt can affect personal assets. On the other hand, corporations have separate legal responsibilities, but the establishment procedures are complicated and operating regulations are more stringent than individual businesses. In addition, essential licenses and permits must be checked depending on the industry. In the case of the restaurant business, along with business registration, it is essential to take hygiene and fire safety training and sign up for fire compensation insurance and liability insurance. Medical businesses must have a license and obtain permission from an administrative agency, and education businesses must also submit documents such as an application for academy establishment registration to the Office of Education. If you choose a corporation during the establishment process, you must prepare the articles of incorporation and organize the shareholder list systematically to prevent future legal disputes. Reviewing the contract is also an area that cannot be neglected. Some businesses rely on verbal agreements, but this can be disadvantageous in the event of a legal dispute. A contract is not simply a formal procedure, but a key means of preventing risks that may arise in the future. In all employment relationships, writing an employment contract is basic, and if you work with a partner, writing a partnership agreement is essential. Also, in relationships with business partners, payment terms, delivery schedule, and scope of responsibility must be made clear through contracts. Transactions conducted without a service contract or supply contract can result in significant losses due to a minor misunderstanding. Human resources and labor management are also commonly overlooked aspects of small and medium-sized business management. If there are five or more full-time workers, labor laws such as the 52-hour workweek must be observed. Along with signing an employment contract, it is also essential to provide a salary slip. In addition, if annual leave and severance pay standards are not followed, there is a high possibility of being involved in an investigation by the Labor Office or a legal dispute with workers. In particular, as the protection of worker rights, such as workplace harassment and unfair dismissal, has become more important, preventive measures such as internal employee training have become important. Although the human resources management system may be lacking at the beginning of the business, if it is not improved during the growth stage, it may face unexpected legal disputes. Tax and financial management are important factors that determine the sustainability of the business. Unlike large corporations, small business owners and small and medium-sized businesses often find it difficult to hire tax experts, so they need basic tax knowledge and procedures to familiarize themselves with reporting procedures. Value-added tax (VAT) reporting, income tax, and corporate tax payment schedules must be carefully managed, and it is best to prepare in advance to reduce the burden of additional tax. It is also important to use tax saving strategies and properly prove legally recognized expenses. For example, work-related expenses must be recognized as expenses by thoroughly managing receipts. Also, in the case of small business owners, if they have employees, they must not forget to report earned income withholding tax and the four major insurance policies. Lastly, protection of intellectual property rights is directly related to long-term brand strategy. Registering your business name and brand trademark right from the start of your business will be helpful in case of future legal disputes. Assets such as logos, content, and product designs must also take copyright protection measures to prevent unauthorized use. In particular, as online business becomes more active, brand value has become more important, and trademark disputes abusing this are increasing, so caution is required. Conversely, you may make the mistake of unknowingly infringing on another company's patent or trademark, so you should conduct a thorough review before filing. Small and Medium Business Team[View full article] Management checklist that small business owners and small and medium-sized business managers must know (link)

The CEO of a company accused of covering up sexual harassment in the workplace was cleared of the charges by the prosecution. On the 28th, the Daejeon District Prosecutors' Office announced that it had decided not to indict Mr. A, a man in his 60s who was sent on charges of violating the Act on Equal Employment Opportunity for Men and Women and Support for Work-Family Balance on the 11th of last month. Although sexual harassment occurred within the company he was CEO in 2022, Mr. A was accused of trying to cover up the incident without a separate investigation or protective measure. Sexual harassment The victim, Mr. B, claimed that not only did Mr. A try to cover up the incident, but he also failed to keep confidentiality, which spread rumors within the workplace and caused him extreme psychological damage. According to Article 14 of the Equal Employment Opportunity Act, if an employer becomes aware of sexual harassment in the workplace, he/she must conduct an investigation to confirm the facts without delay and prevent the victim from feeling sexual shame during the investigation process. Additionally, a person who investigates the occurrence of sexual harassment or is briefed on the details of the investigation must disclose secrets learned during the investigation to others. You must not divulge it. Mr. A completely denied the charges. They said they did their best to resolve the problem, such as meeting with Mr. B's parents and talking to them. They also explained that they perceived the case as closed because Mr. B did not raise any issues after receiving the perpetrator's apology. The prosecution explained, "It is acknowledged that the case was closed rather quickly, but there were no circumstances of intentional ignorance or concealment by Mr. A." He added, "At the time, the conversation with Mr. B's parents ended smoothly, and from Mr. He added, "Mr. B has never raised an objection to the procedure or result for more than two years since then." Dong-gu Kim of the Daeryun Law Firm, who represented Mr. A, said, "If sexual harassment occurs in the workplace, the case is handled in one of two ways, such as reaching an agreement between the parties or conducting a formal investigation." He added, "At the time, Mr. Shin Min-ji (sourminjee@ikbc.co.kr) explained, “I didn’t do it.”[View full article] The representative who dismissed sexual harassment in the workplace was 'not guilty'... "There have been no objections for over two years, so the case can be recognized as closed" (link)

An office worker who was handed over to the prosecution for falsely accusing a business partner of embezzling company money was not indicted. On the 13th of last month, the Western Branch of the Busan District Prosecutors' Office cleared Mr. A, a man in his 50s, on charges of false accusation. Mr. A accused his business partner B of embezzlement and breach of trust in 2022. filed a complaint. However, Mr. B was cleared of the charges by the prosecution, and later counter-sued Mr. A on false accusations. In addition, Mr. B claimed that Mr. A had disclosed false information to his business partners, defaming him and interfering with the company's business. Mr. A denied the charges. It was claimed that Mr. B withdrew about 200 million won from the company's bank account without permission and then disappeared, leaving no choice but to suspect embezzlement. The charge of defamation also emphasized that there was no intention, as the situation was explained to a business partner who could mediate contact with Mr. B. The prosecution determined that Mr. A was not guilty. The prosecution said, “A misunderstanding occurred because the report was omitted during the payment process,” and “The suspect filed the complaint because he thought the victim had actually committed embezzlement.” He added, “Even in the conversation with the business partner, no specific facts that could damage the reputation of the accuser were mentioned,” adding, “It is difficult to prove that the company’s order volume has decreased due to such remarks.” Attorney Jang Ho-cheol of Daeryun Law Firm, who represented Mr. “Even if it does not match, if you thought it was the truth, it does not constitute a false accusation,” he said. “Since Mr. B withdrew a large amount of money that determines the existence of the company, we have no choice but to think that it was embezzlement, so it can be seen that there was no intention to falsely accuse.” Digital Content Team[View full article] An office worker in his 50s who falsely reported “I stole company money”… Prosecutor’s ‘not guilty’ (Shortcut)

The Korean Bar Association recently raised the issue of the ‘network law firm’ structure, saying, “Some law firms are misleading consumers by excessively inflating the organization’s appearance.” In particular, he pointed out that “a small number of lawyers at local branch offices take on cases and advertise them as if a large organization headquartered in Seoul handles them directly,” and raised concerns that legal consumers are being exposed to false and exaggerated information. However, this point is not exactly a problem of ‘network law firms.’ Rather, the reality of deceptive advertising like the above mostly comes from the ‘separate production system’. The ‘separate law firm’ appears to be a single law firm on the outside, but its actual operation method is not integrated at all. This is because each member independently manages events and resulting profits. In reality, it operates in a similar way to a private office. In the case of these law firms, advertisements emphasize the law firm's collaboration and organized response, but in reality, many cases are handled by lawyers alone. In other words, it is reasonable to view the advertising cases that the Bar Association was concerned about as structural problems that commonly occur in separate law firms, not network law firms. It is unclear who is handling the case, whether the entire organization is jointly responsible, and whether computers, data, and manpower are shared within the organization. Legal consumers form trust only by looking at the appearance of the organization, but in reality, they end up relying on the piecemeal handling of work by individual lawyers. In fact, the structural problems with the separate production system have been pointed out several times over the years. A representative example is the case of Attorney A, who failed to appear several times at a school violence trial and had the lawsuit withdrawn. Immediately after the incident occurred, the branch office of the law firm to which the lawyer belonged drew a line, stating, ‘The lawyer in question has withdrawn from the main office and is not affiliated with our branch office.’ This is an incident that exposes the structural limitations of the separate system, which entrusts work entirely to individual lawyers and allows them to perform it independently, and the damage is falling on the general public. Nevertheless, the Bar Association seems to be ignoring the essence of the problem. The Korean Bar Association is ignoring the problem of the separate system, which has been pointed out for a long time, and shifting responsibility by creating an unclear term called ‘network law firm’ that does not even have a legal definition. In practice, the negative frame of 'network' is placed on a place with a 'one firm' structure that operates as 'one law firm' by integrating the computer, human resources, and profit systems, while it does not take issue with the separate product system structure, which is inconsistent between the true substance and appearance. This is a neglect of the Bar Association’s original responsibility to protect the rights of the people and ensure transparency of consumer information. The real problem is ‘structure’. Cases where the organizational system revealed in advertising does not match the actual operating system can be seen as a direct cause of misleading consumers. The legal service market should be evaluated by its responsibility structure and actual operating system, not by its signboard or name. Even if they share the same brand, law firms that use computers, data, and human resources together and have a shared responsibility system can protect consumers by providing a higher level of integrated services. Now, the essence must be corrected. The non-essential frame of a ‘network law firm’ must be removed and institutional arrangements must be made starting with separate law firms. Consumers have the right to know the truth. If a law firm advertises itself as an organization, its operations must also be one. Unless this is made clear, trust in the legal services market can no longer be restored.[View full article] [Contribution] ‘Structural deception’ Byeolsan law firms need to overhaul their systems (Click here)

Served in multiple departments at the Fair Trade Commission... The need to improve systems and customs is highlighted amid growing interest in the professional market in the field of fair trade and subcontracting. Fair trade and subcontracting are areas in which market interest continues to grow. It is mentioned here and there based on a variety of backgrounds, including economic democratization, power relations, protection of small and medium-sized enterprises, and revision of related systems. As government ministries grow, the number of investigative personnel is expanding, and the number of sanctions in the market is also increasing. Companies and law firms responding to this also appear to be busy. Gye-Jun Son, an attorney at Daeryun Law Firm, is an expert specializing in the field. At the Fair Trade Commission, he worked in various positions, including the Subcontracting Department, Cartel Department, Litigation Department, Terms and Conditions Review Department, Customer Support Department, and Special Transactions Department. In addition, he served as a member of the Fair Trade Division of the Prime Minister's Office Regulatory Judgment Committee, a private review member of the Re-report Case Review Committee, a member of the Construction Subcontract Dispute Mediation Council, and an arbitrator at the Korea Commercial Arbitration Board.Together with Attorney Son, we learn about fair trade and subcontracting advisory aspects, characteristics of each field, market issues, and institutional improvements needed. The following is a Q&A with Attorney Son. -Please introduce your current work and history at Daeryun. △I am the head of Daeryun’s corporate legal group. He worked at the Fair Trade Commission for about 10 years and worked at a law firm before joining Daeryun at the end of last year. Our work areas cover all aspects of corporate law, including fair trade, subcontracting, franchises, intellectual property rights, and corporate mergers and acquisitions (M&A). -What kind of fair trade advice is there? What is the difference from other fields? △ In most cases, fair trade advisory involves a company inquiring in advance about whether it violates the ‘Fair Trade Act’ from an external legal expert during the business planning stage. However, the Fair Trade Act often uses uncertain concepts such as ‘restriction of competition’ or ‘unfairness’. It is difficult to definitively determine whether the law has been violated. It has the characteristic of being largely dependent on the precedents of the Fair Trade Commission, a law enforcement authority. -Recently, there has been a lot of talk about the Compliance System (CP) in the field of fair trade. △As the benefit of reduced fines due to CP operation has been legislated, many companies have become interested. Applications for rating evaluation began last month, and the number is said to have doubled compared to previous years. There are three changes in this year's CP grade evaluation: evaluation stage, additional points, and evaluation procedure. First, the order of the evaluation stages has changed. Previous evaluations were conducted in the order of documents, on-site evaluation, and in-depth interviews, but starting this year, face-to-face evaluations (interviews) will be conducted after document evaluation. As on-site evaluations were conducted for companies that recorded (scheduled) a score of 85 or higher in the face-to-face evaluation, the evaluation process and tasks were somewhat simplified. Gasan branches were also opened or changed. First, additional points were added to the agreement implementation evaluation. This is based on the agreement implementation evaluation grade of the year immediately preceding the application for CP rating evaluation. Additional points are added: 1.5 points for best and 1 point for excellent. In the evaluation procedure, the classifications of grade invalidation, grade withholding, and grade adjustment except grade invalidation have been abolished. Grade withholding is a system that withholds a grade when it is inappropriate to assign a grade due to concerns about CP fairness and reliability, and grade adjustment is a lowering of measures if a violation of the law occurs before or after the grade is assigned. It would be good if CP becomes more active and improves in a way that increases practicality. -What types of subcontracting advice are there? △The ‘Act on Fair Subcontracting Transactions’ so-called subcontracting law advice can be broadly divided into those related to payment and those related to technology theft. The contractor (primary contractor) must not set the subcontract price at an unreasonably low level, and cannot reduce it without justifiable cause. Payment must be made within 60 days after delivery. Most advice on subcontracting law concerns these payments. Recently, requests for or misappropriation of technical data from suppliers (subcontractors) without justifiable reasons have become a problem. The Fair Trade Commission is severely sanctioning this, and issues such as whether it truly constitutes technical data or whether a justifiable reason is recognized are being addressed. -What are the industries with particularly high levels of subcontracting advice? What are the characteristics of this? △The subcontracting law applies to three industries: manufacturing, construction, and services. Among these, many problems appear, especially in the manufacturing industry. As the division of labor and specialization in the manufacturing industry progresses, many subcontracting issues are arising, and the Subcontracting Act regulations also comprehensively stipulate manufacturing subcontracting. -If there are any institutional or customary improvements in this regard. △There is a need to improve the direct payment system of the orderer (orderer-principal contractor-subcontractor structure). The direct payment system is a system in which the subcontractor directly requests payment of the subcontract amount to the orderer when the principal contractor becomes insolvent or delays payment of the subcontract amount. However, currently, there is a problem that if the contractor's creditor first seizes the contract payment claim, the subcontractor cannot exercise its right to claim directly. In order to overcome these limitations, it is necessary to establish a new provision in the Subcontracting Act that states that the portion corresponding to the subcontract payment cannot be seized. -What do you feel after working in the industry for a long time? △In the field of fair trade, the response capabilities of companies themselves have increased compared to the past. This is interpreted as preparation for the risk of being subject to huge fines if fair trade laws are violated. The Fair Trade Commission's ability to investigate alleged violations of the law is also incomparable to the past. However, many point out that the procedural rights of companies being investigated for violating the law are still not sufficiently protected. Unlike the prosecution's investigation, it is a voluntary investigation that is premised on the consent of the person under investigation. However, in case of refusal or obstruction of the investigation, fines and imprisonment are possible, so it is effectively operated like a compulsory investigation. The legitimate scope of investigation by Fair Trade Commission investigators during on-site investigations continues to be an issue. In order to increase the acceptability of sanctions such as fines, due process must be strictly observed. Reporter Hwang Yang-taek (hyt@etomato.com)[View full article] [IB Tomato] (IB&People) Gye-Jun Son, Head of Corporate Legal Group, Daeryun Law Firm (Go here)

Ministry of Health and Welfare, Pharmaceutical industry spending report released2Expenditure details of over 10,000 companies revealed for the first time in case of false information or missing data 1Imprisonment of up to one year Internal control inspection…The Ministry of Health and Welfare must preemptively prepare for strengthened regulations. 2month 11of the domestic pharmaceutical and medical device industry. 'Economic Benefit Expenditure Report'was revealed for the first time. The purpose was to increase transparency in the distribution of medicines and medical devices and block the eradication of illegal rebates..The expenditure report released this time is 2023It is based on the fiscal year. gun 2only178910 companies submitted data. The number of participating companies is 2023First survey of the year(1only1809dog) It has doubled since then. Pharmaceutical sales salesperson(CSO)It is analyzed that the new inclusion has a large impact..Ministry of Health and Welfare, Health Insurance Review and Assessment Service(HIRA)of 'Expense report management system'(KOPS)Through this, the general public can check the details of economic benefits provided by each company.. However, to protect personal information and trade secrets, the real name of the medical professional and specific clinical trial details were de-identified.. Direct searches for specific product names or beneficiaries are also restricted.. Information such as clinical trial support expenses is disclosed for the first time in the expenditure report by company. △Type and amount of economic benefits provided to medical personnel, etc. △Statistics such as number of offers and number of cases are included.. Items permitted by law include: 7Limited to branches, Statistics for each item were also provided in this release..① Samples provided : Minimum quantity required to confirm the dosage form and form of the relevant drug or medical device(Sample notation, no sales to patients). 1305total number of companies 1496Provide 10,000 medicines and medical devices to medical institutions.② Academic conference support : Academic conference participant(Presenter and moderator, debater)Actual costs for transportation, food, lodging, and registration fees. 391total number of companies 3155About the proposed academic conference 208billion won support.③ Clinical trial support : The quantity of medicines and medical devices for clinical trials and appropriate research funds required to conduct clinical trials.. 41310 companies research funding 5531billion won and 617Support for 10,000 products.④ Product information session : Transportation costs provided by attendees at actual cost, 5Souvenirs under 10,000 won, lodgment, food and drink(Amount excluding tax and service charge 1hall 10Limited to less than 10,000 won). medicine 2055billion won and medical devices 271Total, including billions of won 2326Provided 100 million won. 1Average amount of support per person 810,000 won.⑤ Post-marketing surveillance : Case reports provided to doctors, dentists, and oriental medicine practitioners participating in post-marketing surveillance 5Honoraria of less than 10,000 won(However, rare disease, When additional work, such as long-term follow-up, is required 30Less than 10,000 won). 101dog company 8only4000To write a case report 116100 million 300010,000 won support.⑥ Cost discount according to payment conditions : Cost discount according to transaction amount payment period(3within months 0.6% below, 2within months 1.2% below, 1within months 1.8% below). 1867total number of companies 2218Offers 10,000 cost discounts.⑦ Check medical device performance : Use of the minimum period of time necessary to verify the performance of the medical device(1Month/medical device field only). 311To check performance before purchasing 857dog items and 6only2630Dog medical equipment provided.Statistics show that a significant portion of the benefits provided to the economy(67.6%)Focused on supporting clinical trials. This suggests that research and development and academic purposes are the main spending drivers.. Also, among all drug suppliers, 18.5%, Among medical device suppliers 17.7%It was found that it provided economic benefits., This means that many small and medium-sized companies only fulfilled reporting obligations and made no or minimal economic provision.. There is a significant legal risk in case of non-compliance with the relevant laws and regulations. There is a significant legal risk in the case of non-compliance with the laws related to the economic profit and expenditure report.. If the report is false or related data is omitted or not stored, in accordance with the Pharmaceutical Affairs Act and the Medical Device Act. 1Imprisonment of up to one year or 1000A fine of up to 10,000 won may be imposed..Moreover, the government is likely to search for anomalies based on expenditure reports.. If excessive support is concentrated on specific medical institutions or medical staff, or if a pattern that deviates significantly from the general industry average appears, it may lead to a rebate investigation..With the release of the report, medical professionals can view the details of their economic interests, and procedures have been established to request corrections if necessary.. Accordingly, each company receives information from medical institutions and medical staff. 'Are the support details reported to you correct?' Please keep in mind that you may receive inquiries or correction requests.. Failure to respond here may lead to complaints or disputes.. For this reason, it is advisable to prepare internally accurate information management and rapid response processes.. As overall compliance policies are required to be reviewed, companies are expected to check their existing business practices and internal control systems while also taking preemptive measures to prepare for future strengthening of regulations.. This is because we cannot rule out the possibility that personal information and some trade secrets that were not disclosed this time will be included in the scope of disclosure in the future.. Specifically, the method of providing economic benefits and related contract documents, A review of the overall compliance policy is required.. The following countermeasures can be considered:.① Enhanced internal training and guidance : Thoroughly educate sales and marketing personnel on the types and limits of permitted economic benefits.. Distribute and continuously update internal guidelines on how to write expenditure reports and their importance.② Check the expenditure report preparation process : Check whether the information required to be included in the expenditure report is collected without omission.. Establish an internal system to thoroughly store documentary evidence for each expenditure item and manage it systematically during the legal retention period..③ Proactive monitoring and self-audit : Conduct quarterly or semi-annual self-audits to identify unusual spending patterns. Implement preemptive corrective action when problems are discovered.④ Establish procedures for responding to beneficiary requests : Establish an internal process to enable medical professionals and medical institutions to respond quickly when requested to confirm expenditure details reported to them..⑤ Monitor future policy changes : Reorganizing the legal and compliance department's response system, taking into account additional guidelines from relevant authorities such as the Ministry of Health and Welfare and the possibility of expanding the scope of disclosure.. Strengthen proactive measures such as maintaining transparent and sound practices in preparation for the possibility of detailed disclosure of individual beneficiaries or products in the future..Disclosure of expenditure reports is part of a policy to actively improve transparency in the pharmaceutical and medical device industry.. The government's strong will to establish a fair trade order is evident.. Companies in the field should not regard this as a simple regulation but strengthen their internal control systems., There is a need to use this as an opportunity to improve corporate trust..Ultimately, it must be kept in mind that establishing transparent and legal business activities is the best way to secure a company's reputation and sustainability.. In the future, continuous monitoring of government policy changes and systematic internal compliance management will become essential strategies for the industry.. [View full article] If the details of clinical trial expenses are incorrect, you will be imprisoned... Pharmaceutical companies in ‘emergency’ [Daeryun’s Biz law forum] (Shortcut)

When a small business owner dies, the surviving family members have no choice but to consider selling if management is difficult. Most of them have problems with off-balance-sheet debt and advance payments, such as policy funds loans, so advance preparation for inheritance is necessary. Mid-sized companies such as Hanssem and Lock & Lock were sold to private equity funds. The excessive burden of inheritance tax is often cited as the main cause behind this. Coincidentally, both companies switched to a professional management system after the sale, but the management situation actually worsened. This clearly shows how difficult it is to run a small and medium-sized business. When the representative of a small business dies, the number of cases where the spouse or children consult about inheritance tax issues and whether to sell the company has recently been increasing. Here is one example: There was a representative of a company who earned a stable income through salary and dividends during his lifetime. The representative was directly responsible for everything from sales to operations. My spouse didn't know anything about business. The children were young. After the sudden death of the CEO, there was no manpower to replace him, and it became unclear whether the business would continue, leading to inquiries as to ‘Should I give up the inheritance if a suitable buyer does not appear?’ The family remembered that the deceased had said during his lifetime, “I created off-balance-sheet debt while trying to make my financial situation look good for policy fund loans, etc.” In the actual sale due diligence process, problems such as off-balance sheet liabilities as well as advance payments were identified, and in the process of selling the company, the representative's personal joint guarantees related to bank loans had to be sorted out as well. When reporting inheritance tax, if there is no market value for unlisted stocks, the ‘supplementary valuation method’ is applied. In this case, the net profit/loss value per share for three years retroactively based on the valuation base date and the net asset value per share at the valuation base date are evaluated by weighting the average at a ratio of 3:2, respectively. However, if the proportion of real estate among the company's assets is more than 50%, the ratio of 2:3 is applied. In addition, if the amount calculated in this way is less than 80% of the net asset value per share, the final evaluation is adjusted to 80% of the net asset value per share. However, if profits were overstated in consideration of loans during the tax reporting process for the past three years, the net profit and loss value and net asset value were evaluated high as a result, and the value of inherited unlisted stocks was also overestimated. In this case, to correct this in order to reduce inheritance tax, it is necessary to ensure that off-balance sheet liabilities actually existed. The facts must be proven. In addition, if the representative's advance payment is confirmed, the amount may be considered as the deceased's income, which may result in a comprehensive income tax tax problem separate from inheritance tax. During the sale due diligence process, it was confirmed that business performance deteriorated sharply in a short period of time after the representative's death. As issues such as off-balance sheet liabilities overlapped, the acquisition amount had no choice but to be set lower than the supplementary valuation amount under the Inheritance Tax and Gift Tax Act. In this process, the heirs even experienced an emotional conflict with the buyer who was an acquaintance of the representative. Ultimately, after many twists and turns, the matter was resolved when the heirs found a third buyer and sold the company for a slightly lower amount than the amount initially discussed. If the company did not sell at such a low amount, there may be a situation where the tax authorities impose an overestimated inheritance tax based on the supplementary assessment amount under the Inheritance Tax and Gift Tax Act. Looking at these cases, the founders of Hanssem and Lock&Lock may have made a wise decision for the future by selling the companies to a private equity fund at a time when the business environment was good rather than passing the companies on to their children. Owners of small and medium-sized businesses have to navigate uncertain management situations every day, and at the same time, they have the difficult task of preparing in advance what kind of situation their families will face in the event of an unexpected accident.[View full article] A management crisis that begins after death... Small business inheritance and taxes, you need to prepare in advance [Contribution] (Shortcut)