A recent decision by the Korean Supreme Court serves as a reminder to multinational companies that where they choose to incorporate matters. In a cross-border dispute involving a Korean parent of a foreign subsidiary, Korea’s highest court chose to apply the law of the subsidiary’s place of incorporation to find parent liability. This ruling has major implications for companies with subsidiaries in foreign jurisdictions that impose different standards for joint and several liability, particularly where corporate veil piercing is easier than in Korea. This latest ruling by the Supreme Court underscores the need for Korean companies to carefully assess the corporate liability regimes of foreign nations before structuring overseas operations.

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