Terms of trading with Korea....

[admagic]

Has anyone got experience of trading in Korea?

Is it standard practise to use letters of credit for supply of services to Korea as a stage pay contract total value in high 6 /low7 figures with a major corporation.

Also....the client is requesting that the contract is drawn in a neutral country jurisdiction- is that normal?? Never heard of that before.

And if so what third country is a sensible choice?

[Anthony Reeves]

Hi there,

Not got experience of trading in Korea but would be able to draft terms and conditions for you. The parties to a commercial contract often select what jurisdiction/laws will apply to the contract.

Anthony Reeves
Pinniger Finch & Co, Solicitors

[Anthony Reeves]

As to which country to select, would make sense to choose a country with similar legal principles to England and Wales.

[consultant]

I have done a lot with Korea, but, it isnt that different to any Asian country.

L/C is not that common for services, it is normally used for goods. This doesnt mean that it cant be, however, the terms will need to be very precisely worded and you would probably wanta structured payment.

Having a neutral company is not a bad idea - they do not want to get drawn in to UK law and you definitely do not want Korea law, although they do have an ombudsman service. Switzerland is one of the most common 'neutral' countries to use.

As this is a big contract, spending several, if not tens of £ on good legal advice would probably be a good idea!