SongYi Son, global division general counsel, Marine & Ports at ABB and vice president at the In-House Counsel Forum (IHCF), discusses the merits and possible obstacles for doing business in South Korea
While South Korea ranks as the world’s 13th-largest economy by nominal GDP, the nation’s commercial landscape presents operational complexities that may not be immediately apparent to foreign investors.
Speaking with Asia Business Law Journal, SongYi Son examines the legal and operational challenges confronting international businesses in South Korea, from data protection to labour laws and corporate governance.
She also discusses the growing strategic role of in-house counsel and highlights how early legal engagement and a culture of integrity serve as essential “licences to operate” in this dynamic market.
Asia Business Law Journal: What makes South Korea a top-tier destination for multinational investors despite global economic shifts?
SongYi Son: South Korea continues to distinguish itself as one of Asia’s most sophisticated and attractive destinations for inbound investment. Its advanced industrial base, strong infrastructure, world-class engineering capabilities and increasingly globalised corporate environment offer significant opportunities for multinational companies operating across technology-driven and capital-intensive industries.
For global investors, these advantages represent not only scale and technical excellence, but also reliability as a long-term business partner.
ABLJ: What perspective can you offer international companies entering South Korea?
Son: From the perspective of an in-house counsel at a multinational group, South Korea’s attractiveness is inseparable from a legal and regulatory environment that is both highly developed and uniquely complex.
The challenge for international investors is rarely the absence of rules, but rather navigating a system that is dynamic, enforcement focused and deeply influenced by local legal culture and regulatory expectations.
ABLJ: Has the regulatory environment matured in South Korea?
Son: South Korea’s regulatory framework has evolved rapidly in the past two decades and today reflects a high degree of maturity and alignment with global standards across areas such as competition law, anti-corruption, data protection, labour, trade compliance and corporate governance.
At the same time, regulatory authorities are well resourced, technically sophisticated and increasingly assertive. Enforcement actions are no longer viewed as exceptional events but as an integral part of regulatory supervision. Investigations tend to be comprehensive, documentation driven and time sensitive, requiring companies to respond quickly and with clear internal alignment.
For multinational organisations, this creates a dual obligation: to comply with laws and enforcement practices while simultaneously meeting global compliance expectations originating from other jurisdictions, including the US and Europe.
ABLJ: In an era of “borderless” regulation, what challenges are arising in South Korea?
Son: One of the most consistent challenges facing multinational groups operating in South Korea is the convergence of domestic regulation with extraterritorial enforcement regimes. Anti-bribery and corruption laws, trade sanctions, export controls and data protection obligations increasingly extend beyond national borders.
Decisions made at the local level – whether in structuring sales models, engaging intermediaries, or managing cross border data flows – can have regulatory implications in multiple jurisdictions. In practice, this means local business teams must operate with awareness that their actions may be scrutinised by South Korean regulators and foreign enforcement authorities alike.
For in house counsel, the task is not limited to legal interpretation. It requires active risk orchestration: ensuring local compliance frameworks are sufficiently robust while remaining practical and workable within South Korea’s fast-paced business environment. Global policies that function well elsewhere may require careful adaptation to local realities, without compromising core compliance principles or regulatory expectations abroad.
ABLJ: Does this apply to digitalisation in South Korea?
Son: Digitalisation presents a particularly acute example of this balancing act. South Korea maintains one of the most stringent data protection regimes in Asia at a time when businesses increasingly rely on digital platforms, remote monitoring, AI-enabled systems and centralised data analytics.
The challenge is not only legal compliance but operational design. Global organisations depend on shared systems and regional or global data hubs to operate efficiently. Yet these models must be carefully aligned with local data protection requirements.
Achieving this alignment requires close collaboration between legal, IT and business teams, and a willingness to embed compliance into system design rather than retrofitting it after issues arise.
ABLJ: What are common pitfalls for foreign firms regarding labour laws?
Son: Inbound investors must navigate complexity with care. Employee protection is strong, union engagement is increasingly active, and enforcement risks are real. For multinational companies accustomed to more flexible employment regimes, misunderstandings can arise around working hours, termination protections, consultation obligations and collective labour dynamics.
In this context, effective legal support depends on early involvement, continuous engagement with HR leadership, and a deep understanding of both legal requirements and workplace culture. Many compliance challenges in this area stem not from intent, but from a lack of familiarity with local norms and expectations.
ABLJ: How is the role of the in-house lawyer evolving within the Korean business context?
Son: Business leaders increasingly expect legal teams to act not only as technical legal advisers but as strategic partners – anticipating risks, enabling informed decision making and contributing to sustainable value creation.
In South Korea’s highly competitive and fast-moving market, legal advice delivered late in the process is often perceived as an obstacle. By contrast, legal input provided early – framed in commercial terms and aligned with business objectives – is more likely to be welcomed as a strategic asset.
This shift requires legal teams to understand the business deeply, appreciate the pressures under which leaders operate, and engage with risk in a pragmatic and solution-oriented manner.
Across all regulatory themes, one principle remains constant: integrity is not optional. For multinational companies operating in South Korea, a strong culture of integrity is not merely a compliance requirement but “a licence to operate”.
Regulators increasingly assess not only whether companies comply with specific rules but whether they demonstrate genuine ownership of ethical conduct through leadership tone, governance structures and internal accountability.
Organisations that invest in a speak-up culture, transparent escalation mechanisms and clear risk ownership are better positioned to manage regulatory scrutiny and respond effectively when issues arise.
ABLJ: What fundamentals does a multinational need to succeed in the Korean market?
Son: Looking ahead, South Korea will continue to be a compelling destination for inbound investment. Its regulatory environment will remain demanding. But it is also predictable and navigable for those who invest the time to understand it properly.
For international investors and in-house counsel alike, success rests on three fundamentals: early legal engagement, alignment between global standards and local execution, and a clear commitment to integrity as a core business value. When approached thoughtfully, legal and regulatory complexity does not hinder investment – it strengthens it.
