SOUTH KOREA Law and Practice Contributed by: Jeena Kim, Sodam Kim and Bochan Kim, Bae, Kim & Lee LLC
7.2 Scope of Designation Entities are not automatically designated solely by virtue of being owned or controlled by a designated person. However, as explained in 3.2 Future Devel- opments , the amended Anti-Terrorism Act introduced a form of indirect designation of subsidiaries “owned or controlled” by a designated person. It remains to be seen how this provision will be applied in practice. As noted in 3.2 Future Developments , the Enforcement Decree that is intended to provide detailed guidelines about the interpretation of the amended Anti-Terror - ism Act has been published in draft form for public comment and has not been enforced yet. 7.3 Circumvention 7.3.1 Prohibiting Provisions Laws and regulations related to sanctions in Korea do not explicitly penalise the act of seeking to circumvent sanctions. The provisions prohibiting the violation of sanctions regulation is explained in 2.2.2 Breaching Sanctions . 7.3.2 Criminal Penalties As noted in 7.3.1 Prohibiting Provisions , South Korean sanctions-related laws and regulations do not expressly impose penalties for attempts to circum - vent sanctions. The criminal penalties for violations of sanctions regulations are outlined in 2.2.2 Breaching Sanctions .
High Court Judgment dated 30 June 2011, Case No 2010Na108984). • On 20 August 2021, the Seoul Central District Court held that a Korean company (defendant) was not at fault for failing to supply masks after receiving full payment from a Hong Kong com - pany (plaintiff), due to export restrictions imposed by the Korean government on selling the masks. The court found that the sales contract had been frustrated by government action, without fault attributable to either party (Seoul Central District Court Judgment dated 20 August 2021, Case No
2021GaHap50655). 6.2 Enforcement
A review of South Korean enforcement practice reveals no reported cases in which courts have refused or modified the enforcement of a final judgment on the grounds of sanctions-related issues.
7. Designation, Compliance and Circumvention 7.1 Executive Body
The MOTIE is responsible for designation decisions related to export controls, while the Ministry of Econ - omy and Finance and the Financial Services Commis - sion are responsible for designation decisions related to financial sanctions. The Ministry of Foreign Affairs is responsible for overall co-ordination among govern - ment agencies in matters related to sanctions.
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