Piercing of the Corporate Veil in Korea: Case Commentary

Abstract

The purpose of this Commentary is to critically appraise the jurisprudence of Korea on the doctrine of corporate veil piercing with a special emphasis on the Korean Supreme Courts decision in 2004Da26119. In 2004Da26119, the Supreme Court of Korea delineated the criteria for disregarding the corporate entity under Korean corporate law, particularly in the parentsubsidiary context. As part of its purported aim, the Commentary will analyze the constitutive elements of veil piercing as understood by Korean courts and attempt to survey the evolution of jurisprudence on veil piercing leading up to 2004Da26119. The Commentary will argue that a showing of parental motive and/or purpose, which the Supreme Court required in 2004Da26119 as part of prima facie proof for veil piercing, may well dampen the overall efficacy of veil piercing in Korea, due to the evidentiary hardship it will pose in practice.