Understanding Korean Corporate Law and Governance

Abstract

Corporations are the main actors in the modern economy. Large businesses are rarely organized as sole proprietorships or partnerships but usually take the form of incorporated entities (i.e., corporations). Corporations in various jurisdictions manufacture, sell, buy, export, and import goods; develop, provide, and buy services; lend and borrow money; hire and pay employees; and finance local, national, and international governments and foundations by paying taxes and making donations. It is difficult to imagine modern society without corporations. Thus, to fully understand how the modern economy and society work, one needs to understand how corporations are organized and operated. Because a corporation is an artificial entity created by law, its organization and operation are stipulated in and governed by the law of the relevant jurisdiction.