Cha & Kwon Law Offices provided legal advisory services to the Korean subsidiary of a multinational distribution company in structuring and drafting an employment agreement for the recruitment of a director-level key executive. The position involved oversight of the company’s core operations, and given the nature of the role, access to competitively sensitive information—including trade secrets and system operation know-how—was inevitable. Accordingly, key issues included the design of post-termination non-compete obligations and non-solicitation provisions covering both clients and employees.

In drafting the agreement, Cha & Kwon Law Offices structured the contract with a focus on: (i) the legal status of a director-level employee and its distinction from a statutory director under the Korean Commercial Act; (ii) specification of grounds for termination; (iii) the scope, duration, geographic coverage, and consideration for post-termination non-compete obligations; (iv) the scope of non-solicitation provisions; (v) confidentiality obligations and intellectual property ownership clauses; and (vi) the hierarchy of interpretation in a bilingual (Korean-English) agreement.

As a result, Cha & Kwon Law Offices delivered an employment agreement that carefully balances employee protection under the Korean Labor Standards Act with the company’s need to protect its trade secrets and competitive position. In particular, the non-compete provisions were designed to satisfy the validity requirements established under Korean case law, including the existence of protectable business interests, reasonable limitations in terms of duration, geographic scope, and business scope, and the provision of adequate consideration. The firm continues to provide tailored advisory services to multinational companies, ensuring compliance with Korean labor laws while effectively safeguarding the legitimate interests of the company.