The Korean Law Blog | Dowoo Hwasan

MUST-KNOW for distributors and suppliers! The legal Prohibition of Return of Goods to respond to unfair returns of seasonable products. In large-scale distribution transactions, a distributor must have “justifiable reasons for return” to return goods. The reasons qualifying as justifiable are prescribed in detail under Article 10(1) of the Act on Fair Transactions in Large Franchise and Retail Businesses. Any return of goods without justifiable reasons may be subject to a corrective order and fines for the violation.  Article 10 (Prohibition of Return of Goods) (1) A large retail business entity shall not return all or any of supplied goods without justifiable reasons: Provided, that justifiable reasons are presumed to exist in any of the following cases if the goods are returned within a period deemed reasonable in the relevant trade: 1. Where conditions of return have been agreed in detail at the time of concluding a contract and documents clarifying such conditions of return are de

DOWOO HWASAN Attorneys & Counselors is dedicated to resolving your case as a law firm of specialized attorneys in each field, including international tax, tax investigation response, tax advice, as well as administrative litigations and criminal cases related to tax. Has your tax issue escalated unexpectedly? Do you need a legal review of your issue? Hiring a specialized and experienced attorney should be your first step. Tax Investigation—Tax Appeal Procedure I was assessed with excessive taxes…  When excessive tax imposition is expected during a tax audit stage, a taxpayer will be given the opportunity to fully explain his or her position. When the taxpayer’s claims are determined to be valid, the excess tax will not be imposed. When the difference in arguments between the taxpayer and the investigator is unresolvable, a deliberation procedure may start under an advisory committee, which is an internal procedure of the National Tax Service. In most cases, however, the taxpayer’s

Countermeasure for the case where a Franchisor categorized as a large retail business entity in South Korea goes on a power trip regarding the return of goods to its supplier without justifiable reasons   If, for the immediately preceding business year, the aggregate of sales from company-operated stores and the sum of royalties and product sales received from franchisee is at least KRW 100 billion, the franchisor is categorized as a large retail business entity and is subject to the Act on Fair Transactions in Large Franchise and Retail Business (“Large Retail Business Act”) (that is, the Large Retail Business Act does not apply to all franchisors). Franchisor under the list of large retail business entities operates its own stores or sells goods to the franchisee after purchasing them from a supplier. During this process, when the franchisor makes a return request to the supplier without justifiable reasons, it is difficult for the supplier who is in the position of contractual i

How should private business operators react to a tax audit? Private business operators must report tax during the specified period as taxpayers. Even with increasing sales and purchases, it is difficult for them to handle tax reporting every time, so they usually hire tax agents to report their taxes. However, the operators themselves should be aware of the taxation to a certain extent so that they they can avoid unexpected situations. ​ Dowoo Hwasan Attorneys & Counselors resolves cases with our attorneys who have expertise in international taxation, responses to tax audit, tax advice, administrative litigation and criminal cases in relation to tax . If you’re faced with unexpected growing tax issues, or you have to approach the issue from a legal perspective, get an expert’s assistance.   What to do if you are facing a tax audit? “I’ve been normally running my business as a private operator but was unexpectedly notified of a tax audit.” You will initially be wor