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A dispute has arisen with an overseas business partner. Under private international law, can I file a lawsuit in a Korean court?

Our company recently had a dispute with an overseas business partner over the price of goods and the termination of a contract. The counterpart company has its headquarters abroad, but I understand that it also conducts business activities in Korea. The counterpart insists on litigating in its own country's court, but from our perspective, we wish to proceed with litigation domestically. In this case, I would like to know whether we can file suit in a Korean court and how international jurisdiction is determined under private international law.

Private international law

Answer to Related Inquiry

Author: 김국일

Under private international law, a Korean court may have international jurisdiction where a party or the matter in dispute has a 'substantial connection' with Korea.

Here, a substantial connection is judged by comprehensively considering factors such as the party's address or the location of its head office or principal place of business, the place where the contract was concluded and performed, and the circumstances and content of the dispute.

If the corporation has its head office in Korea and the performance of the contract, payment of the price, delivery of the goods, and the like are closely connected with Korea, there is a sufficient possibility that our court's jurisdiction will be recognized.

In addition, if the counterpart maintains an office or place of business in Korea or has conducted business activities toward Korea continuously and systematically, special jurisdiction may be recognized for disputes related to those business activities, on the basis of the location of the office or of the business activities.

Furthermore, in the case of a lawsuit concerning property rights, such as the price of goods, if the property that is the object of the claim is located in Korea or the counterpart holds attachable property in Korea, there is also room for international jurisdiction to be recognized on that basis.

However, where the dispute has almost no connection with Korea or the value of the property is extremely small, it may be limited.

Ultimately, international jurisdiction under private international law must be judged by comprehensively analyzing the contents of the contract, whether there is a jurisdiction agreement, the scope of the counterpart's domestic activities, the location of the property, and the like, so a careful review of the specific facts is necessary before filing suit.

If your situation calls for a thorough response plan, we recommend discussing it with Daeryun, the ninth-ranked law firm in Korea (based on 2025 value-added tax filings with the National Tax Service).