Case Analysis / Legal Updates

The Supreme Court has held that even if a franchisor does not follow the price change procedure set out in a franchise agreement, a price increase does not automatically become void where the franchisee is found to have given implied consent after the fact. (Supreme Court, Judgment of January 29, 2026, 2025 Da 217179)

US litigation refers to civil, criminal, and administrative proceedings conducted in US courts, and for global companies it can become a risk that spans business structure, personal data processing, jurisdiction, and the response to discovery.

Tariff litigation is a representative international trade dispute procedure in which the lawfulness of a government's tariff imposition or trade policy is contested. As recent rulings of illegality and large-scale refund lawsuits surrounding the United States' reciprocal tariff policy continue, disputes over the legal basis for tariff imposition and refund procedures are rapidly expanding.

As the government has recently strengthened its enforcement against the wrongful receipt of subsidies, the legal liability of companies is expanding. This article summarizes the background of the policy change, the relevant statutes, and the legal liability that may arise.

The Final Appeal Group of Daeryun Law Firm LLP analyzed a Supreme Court decision holding that a management performance-based bonus paid to employees is not always included in the average wage that serves as the basis for calculating retirement benefits.In this case, the lower court determined that the management performance-based bonus in question was merely in the nature of a distribution of business profits and could hardly be regarded as consideration directly connected to the provision of labor, and that it therefore should be excluded from the calculation of the average wage.The Supreme Court reaffirmed its established legal principle that “whether a management performance-based bonus is paid as consideration for labor must be determined according to whether the obligation to pay the money is directly and closely related to the provision of labor.” (Supreme Court, Decision of March 12, 2026, 2025 Da 210219)

Corporate bankruptcy costs are expenses disbursed on a priority basis during a company's bankruptcy proceedings, and they significantly affect the amount actually distributed. Through the case of the BALAAN bankruptcy, this article analyzes the order of creditor repayment and the likelihood of recovery.

Corporate insolvency refers to a situation in which a company fails to repay its debts in the ordinary course and reaches a state of inability to pay. Recently, as a growing number of presale contract holders choose “completion of the development” through the resumption of construction rather than a cash refund following the insolvency of construction companies, a new trend is emerging in the construction market.

This case concerning liability for structures arose where a fire broke out from a cigarette butt discarded near a temporary storage shed and then spread to the shed and adjacent buildings. The issues were whether a defect in the installation or preservation of a structure under Article 758(1) of the Civil Act was established, and whether the amount of damages could be reduced under Article 3 of the Act on Liability for Fire Caused by Negligence.The Seoul Northern District Court recognized the tort liability of the person who discarded the cigarette butt, and, taking comprehensive account of the fire vulnerability of the damaged buildings themselves, the causes of the expansion of the damage, and the fairness of the apportionment of loss, it reduced the amount of damages by 50%. (Seoul Northern District Court, Decision of August 14, 2025, 2024 Gahap 22263)

This article analyzes the causes behind the rise in small business closures and outlines the principal legal issues that may arise during the closure process.

In a case concerning defect repair guarantee insurance, the issue was whether the insurer's liability is recognized for defects in an apartment complex that arose within the insurance period even where the failure to repair the defects occurred after the end of the insurance period, and the Supreme Court recognized the insurer's liability. (Supreme Court, Decision of October 8, 2024, 2023 Da 298892)

Even after the warranty liability period has ended, a construction company may face a situation in which it bears legal liability.In the construction industry, establishing a defect-response framework and a corporate liability structure has recently emerged as an important management issue.

An application for court receivership is a rehabilitation procedure that allows a company, when financial difficulties have left it unable to repay its debts in the ordinary course, to restructure those debts and pursue the normalization of its management under the supervision of the court.