{"id":763,"date":"2026-04-10T13:02:07","date_gmt":"2026-04-10T13:02:07","guid":{"rendered":"https:\/\/atlaw.kr\/en-blog\/?p=763"},"modified":"2026-05-27T00:09:47","modified_gmt":"2026-05-27T00:09:47","slug":"director-dismissal-lawsuit-south-korea","status":"publish","type":"post","link":"https:\/\/atlaw.kr\/en-blog\/director-dismissal-lawsuit-south-korea\/","title":{"rendered":"Can a Minority Shareholder Remove a Director in South Korea? Director Dismissal Lawsuit Guide"},"content":{"rendered":"<p><!-- ATLAS_HREFLANG_START --><link rel=\"alternate\" hreflang=\"ko\" href=\"https:\/\/atlaw.kr\/kr-blog\/%ec%9d%b4%ec%82%ac%ed%95%b4%ec%9e%84%ec%9d%98-%ec%86%8c-%ec%9a%94%ea%b1%b4\/\" \/><link rel=\"alternate\" hreflang=\"en\" href=\"https:\/\/atlaw.kr\/en-blog\/director-dismissal-lawsuit-south-korea\/\" \/><link rel=\"alternate\" hreflang=\"x-default\" href=\"https:\/\/atlaw.kr\/kr-blog\/%ec%9d%b4%ec%82%ac%ed%95%b4%ec%9e%84%ec%9d%98-%ec%86%8c-%ec%9a%94%ea%b1%b4\/\" \/><!-- ATLAS_HREFLANG_END --><br \/>\n<!-- ===== Schema Markup ===== --><\/p>\n<p><!-- Article Schema --><br \/>\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"Article\", \"headline\": \"Can a Minority Shareholder Remove a Director in South Korea? A Practical Guide to the Director Dismissal Lawsuit | Atlas Legal\", \"description\": \"When a South Korean shareholders' meeting rejects a director removal resolution, minority shareholders holding 3% or more of shares can petition the court directly. Learn the legal requirements, key case law, and litigation strategy.\", \"author\": {\"@type\": \"Person\", \"name\": \"Taejin Kim\", \"jobTitle\": \"Attorney at Law\", \"worksFor\": {\"@type\": \"LegalService\", \"name\": \"Atlas Legal\", \"url\": \"https:\/\/atlaw.kr\", \"address\": {\"@type\": \"PostalAddress\", \"addressLocality\": \"Incheon\", \"addressRegion\": \"Yeonsu-gu, Incheon\"}}, \"@id\": \"https:\/\/atlaw.kr\/en\/taejin-kim-en\/#person\"}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"Atlas Legal\", \"url\": \"https:\/\/atlaw.kr\", \"@id\": \"https:\/\/atlaw.kr\/#legalservice\"}, \"datePublished\": \"2026-04-10\", \"dateModified\": \"2026-04-10\", \"mainEntityOfPage\": {\"@type\": \"WebPage\"}, \"@id\": \"https:\/\/atlaw.kr\/en-blog\/director-dismissal-lawsuit-south-korea#article\"}<\/script><\/p>\n<p><!-- FAQ Schema --><br \/>\n<script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"What is the minimum shareholding required to file a director dismissal lawsuit in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Under Article 385(2) of the Korean Commercial Act, a shareholder holding 3% or more of the total issued shares may petition the court to dismiss a director. This threshold must be maintained throughout the entire litigation until the judgment becomes final.\"}}, {\"@type\": \"Question\", \"name\": \"Does a shareholders' meeting quorum failure count as a 'rejection' for purposes of the director dismissal lawsuit in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes. The Supreme Court of Korea has held that where a shareholders' meeting called to vote on director dismissal failed to proceed due to insufficient quorum, this constitutes a 'rejection' of the dismissal resolution for purposes of Article 385(2) of the Korean Commercial Act (Supreme Court, April 9, 1993, 92Da53583).\"}}, {\"@type\": \"Question\", \"name\": \"What is the filing deadline for a director dismissal lawsuit in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The lawsuit must be filed within one month of the shareholders' resolution under Article 385(3) of the Korean Commercial Act. This is a strict deadline. New grounds for dismissal cannot be added after this period expires, so all available grounds should be pleaded at the outset.\"}}, {\"@type\": \"Question\", \"name\": \"What happens if the director's term expires during the lawsuit in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The lawsuit loses its legal interest and will be dismissed. The purpose of the director dismissal lawsuit under Korean law is to terminate the director's mandate before the end of the term. If the term expires during litigation, the claim becomes moot \u2014 even if the director is subsequently re-elected by the shareholders' meeting.\"}}, {\"@type\": \"Question\", \"name\": \"What conduct qualifies as grounds for a director dismissal lawsuit in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Two grounds exist under Article 385(2) of the Korean Commercial Act: (1) 'misconduct in the performance of duties' \u2014 an intentional act by which the director breaches an obligation causing damage to the company; and (2) 'material violation of law or articles of incorporation' \u2014 a serious breach comparable in gravity to misconduct, whether intentional or negligent, causing damage to the company.\"}}, {\"@type\": \"Question\", \"name\": \"When does a court judgment dismissing a director take effect in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The dismissal takes effect when the judgment becomes final and conclusive \u2014 not at the time of pronouncement. No separate resolution by the company is required. Because the lawsuit is a constitutive action, the court judgment itself operates to terminate the director's position.\"}}, {\"@type\": \"Question\", \"name\": \"Who are the defendants in a director dismissal lawsuit in South Korea?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Both the company and the director must be named as co-defendants. Since Korean commercial law contains no express provision giving the dismissal judgment erga omnes effect, joining the company as a defendant is necessary to ensure the judgment binds the company. Note that in interlocutory injunction proceedings ancillary to the main lawsuit, only the director \u2014 not the company \u2014 is the respondent.\"}}], \"@id\": \"https:\/\/atlaw.kr\/en-blog\/director-dismissal-lawsuit-south-korea#faq\"}<\/script><\/p>\n<p><!-- LocalBusiness Schema --><br \/>\n<script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":[\"LegalService\",\"LocalBusiness\"],\"name\":\"Atlas Legal\",\"image\":\"https:\/\/atlaw.kr\/logo.png\",\"url\":\"https:\/\/atlaw.kr\",\"telephone\":\"+82-32-864-8300\",\"address\":{\"@type\":\"PostalAddress\",\"streetAddress\":\"323 Incheon Tower-daero, Tower B, Suite 2901 (Songdo-dong, Centrod)\",\"addressLocality\":\"Incheon\",\"addressRegion\":\"Yeonsu-gu, 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2px 4px rgba(114, 47, 55, 0.3);\n        margin-top: 5px;\n    }\n    br {\n        display: none;\n    }\n    strong {\n        font-weight: bold;\n    }\n    @media (max-width: 768px) {\n        body { padding: 10px; }\n        .content-container { padding: 15px; }\n        h2 { font-size: 18px; }\n        h3 { font-size: 17px; }\n        p, li { font-size: 16px; }\n        th, td { font-size: 14px; padding: 8px; }\n    }\n    .site-container, .content-area, .entry-content {\n        padding: 0;\n        margin: 0;\n    }\n    .entry-content > *:first-child {\n        margin-top: 0 !important;\n    }\n    .entry-content {\n        margin-top: 0 !important;\n    }\n    .kb-row-container, .kb-column-container {\n        margin: 0;\n        padding: 0;\n    }\n<\/style>\n<p><!-- ===== Content ===== --><\/p>\n<div class=\"content-container\">\n<p>    <!-- Table of Contents --><\/p>\n<div class=\"toc\">\n<h2>Table of Contents<\/h2>\n<ul>\n<li><a href=\"#section1\">1. What Is a Director Dismissal Lawsuit Under South Korean Law?<\/a><\/li>\n<li><a href=\"#section2\">2. Who Can File, and What Are the Procedural Requirements in South Korea?<\/a><\/li>\n<li><a href=\"#section3\">3. What Conduct Qualifies as Grounds for Dismissal in South Korea?<\/a><\/li>\n<li><a href=\"#section4\">4. What Happens When a Director&#8217;s Term Expires During Litigation in South Korea?<\/a><\/li>\n<li><a href=\"#section5\">5. What Are the Legal Effects of a Dismissal Judgment in South Korea?<\/a><\/li>\n<li><a href=\"#section6\">6. FAQ<\/a><\/li>\n<\/ul><\/div>\n<p>    <!-- Story Hook --><\/p>\n<div class=\"story-hook\">\n<p><strong>Atlas Legal Case:<\/strong> A controlling shareholder and sole inside director had drawn unauthorized compensation from the company for nearly nine years. Two separate derivative suits resulted in confirmed judgments ordering repayment of approximately KRW 460 million \u2014 yet not a single won was returned. The shareholders&#8217; meeting voted down a removal resolution. With one month left on the clock, our team filed a director dismissal lawsuit under Article 385(2) of the Korean Commercial Act. The court granted the petition.<\/p>\n<\/p><\/div>\n<p>    <!-- Direct Answer --><\/p>\n<div class=\"direct-answer\">\n        <strong>Direct Answer:<\/strong> Under Article 385(2) of the Korean Commercial Act, a shareholder holding 3% or more of total issued shares may petition a South Korean court to dismiss a director if the director has committed misconduct or materially violated applicable law or the articles of incorporation, and the shareholders&#8217; meeting has rejected a removal resolution. The petition must be filed within one month of that resolution.\n    <\/div>\n<p>    <!-- Story Detail --><\/p>\n<div class=\"story-detail\">\n<h3>Nine Years of Unauthorized Pay, Falsified Share Registers \u2014 and a Court Order to Leave<\/h3>\n<p class=\"disclaimer\">\u203b This matter was handled by Atlas Legal. Party names have been anonymized to protect client confidentiality.<\/p>\n<p>Director Y2 held the position of largest shareholder and sole inside director of Company Y1. Despite the company&#8217;s articles of incorporation requiring board and shareholder approval to fix director compensation, Y2 had collected salary for approximately nine years without any such resolution. Our client X obtained two separate derivative-suit judgments \u2014 confirmed on final appeal \u2014 ordering repayment. Y2 ignored both. Separately, Y2 had deleted the names of X&#8217;s children from the company&#8217;s share register and altered supporting documents, conduct that ultimately led to a criminal referral by the police to the prosecutor&#8217;s office on charges of document forgery. When the shareholders&#8217; meeting rejected the removal agenda, Atlas Legal filed a director dismissal lawsuit and secured a judgment removing Y2 from the board.<\/p>\n<\/p><\/div>\n<p>    <!-- Section 1 --><br \/>\n    <\/p>\n<h2 id=\"section1\">1. What Is a Director Dismissal Lawsuit Under South Korean Law?<\/h2>\n<p>Under the Korean Commercial Act, directors may be removed at any time by a supermajority resolution of the shareholders&#8217; meeting \u2014 a two-thirds vote of shares present representing at least one-third of total issued shares (Article 385(1)). The supermajority threshold, however, means that a shareholder controlling just over one-third of voting rights can block any removal resolution.<\/p>\n<p>To address this structural problem, the Korean Commercial Act provides an alternative mechanism for minority shareholders. Under Article 385(2), where a director has committed misconduct or materially violated applicable law or the articles of incorporation, and the shareholders&#8217; meeting has nonetheless rejected removal, a shareholder holding 3% or more of total issued shares may petition the competent district court to order the director&#8217;s dismissal directly.<\/p>\n<h3>Comparison: Shareholders&#8217; Meeting Removal vs. Court-Ordered Dismissal in South Korea<\/h3>\n<table>\n<tr>\n<th>Item<\/th>\n<th>Shareholders&#8217; Meeting Removal<\/th>\n<th>Director Dismissal Lawsuit<\/th>\n<\/tr>\n<tr>\n<td>Legal basis<\/td>\n<td>Korean Commercial Act, Art. 385(1)<\/td>\n<td>Korean Commercial Act, Art. 385(2)<\/td>\n<\/tr>\n<tr>\n<td>Vote required<\/td>\n<td>Supermajority (2\/3 of votes present)<\/td>\n<td>3%+ shareholder + misconduct\/violation + rejection<\/td>\n<\/tr>\n<tr>\n<td>Grounds restriction<\/td>\n<td>None \u2014 any reason sufficient<\/td>\n<td>Misconduct or material violation of law\/articles<\/td>\n<\/tr>\n<tr>\n<td>Director&#8217;s damages claim<\/td>\n<td>Possible if removal without just cause<\/td>\n<td>Not recognized<\/td>\n<\/tr>\n<tr>\n<td>Effect<\/td>\n<td>Immediate upon resolution<\/td>\n<td>Upon judgment becoming final and conclusive (not at pronouncement)<\/td>\n<\/tr>\n<\/table>\n<p>    <!-- Section 2 --><br \/>\n    <\/p>\n<h2 id=\"section2\">2. Who Can File, and What Are the Procedural Requirements in South Korea?<\/h2>\n<h3>Standing: 3% Shareholding Threshold<\/h3>\n<p>Any shareholder holding 3% or more of total issued shares may bring the action, regardless of whether that shareholder personally convened the shareholders&#8217; meeting at which removal was rejected. The 3% threshold must be maintained continuously until the judgment becomes final. If the plaintiff&#8217;s shareholding falls below the threshold through a sale or transfer during litigation, the court must dismiss the action for lack of standing.<\/p>\n<h3>Prerequisite: Rejection at a Shareholders&#8217; Meeting<\/h3>\n<p>The lawsuit may only be filed after a shareholders&#8217; meeting has failed to pass a removal resolution. South Korea&#8217;s Supreme Court has confirmed that a shareholders&#8217; meeting called to vote on director removal that failed to proceed for lack of quorum also constitutes a &#8220;rejection&#8221; for purposes of Article 385(2) (Supreme Court of Korea, April 9, 1993, 92Da53583).<\/p>\n<h3>Filing Deadline: One Month<\/h3>\n<p>The petition must be filed within <strong>one month<\/strong> of the shareholders&#8217; resolution (Korean Commercial Act, Art. 385(3)). This is a strict, non-extendable deadline. Critically, new dismissal grounds may not be added after the one-month period has elapsed \u2014 even if the action itself was timely filed. Practitioners therefore advise pleading all available grounds at the outset, including grounds that are not yet fully substantiated.<\/p>\n<h3>Jurisdiction<\/h3>\n<p>The action must be filed with the district court having jurisdiction over the company&#8217;s principal place of business (Korean Commercial Act, Art. 385(3), Art. 186).<\/p>\n<h3>Defendants<\/h3>\n<p>Both the company and the director must be joined as co-defendants. Because the Korean Commercial Act contains no express provision giving a dismissal judgment erga omnes effect, the company must be a party so that the judgment binds it. The standard form of judgment reads: &#8220;Defendant [Director] is hereby dismissed from the position of director of Defendant [Company].&#8221;<\/p>\n<p>    <!-- Section 3 --><br \/>\n    <\/p>\n<h2 id=\"section3\">3. What Conduct Qualifies as Grounds for Dismissal in South Korea?<\/h2>\n<p>Two distinct grounds exist under Article 385(2) of the Korean Commercial Act. Mere negligence or poor performance does not suffice for either ground \u2014 the conduct must rise to the level of intentional wrongdoing or a serious violation.<\/p>\n<h3>Ground 1: Misconduct in the Performance of Duties<\/h3>\n<p>&#8220;Duties&#8221; encompasses not only the director&#8217;s core responsibilities but also conduct directly or indirectly connected to those responsibilities. &#8220;Misconduct&#8221; means an <strong>intentional act<\/strong> by which the director breaches an obligation causing damage to the company. Negligent failure to perform duties alone does not qualify.<\/p>\n<p>In the case handled by our team, Director Y2 had collected salary for approximately nine years without the required shareholder or board resolution fixing compensation, in violation of Article 388 of the Korean Commercial Act and the company&#8217;s articles of incorporation. Two confirmed court judgments established the company&#8217;s resulting loss. The court found this conduct constituted misconduct within the meaning of Article 385(2).<\/p>\n<p>The court also found that Y2&#8217;s deletion of minority shareholders&#8217; names from the share register \u2014 done to gain advantage in a management dispute \u2014 and the associated falsification of supporting documents constituted additional misconduct, causing the company to suffer further loss through litigation brought by those shareholders.<\/p>\n<h3>Ground 2: Material Violation of Law or Articles of Incorporation<\/h3>\n<p>&#8220;Material violation of law or articles of incorporation&#8221; does not encompass general negligence. It requires a specific unlawful act \u2014 one serious enough to be comparable to misconduct \u2014 by which the director, whether intentionally or negligently, severely violates applicable law or the articles, thereby breaching fiduciary duties and causing damage to the company.<\/p>\n<p>South Korea&#8217;s Supreme Court held that where a director, without shareholder approval, established a competing company and became its director and representative director \u2014 even if the competing company had not yet commenced operations and the director later resigned \u2014 this constitutes a violation of the non-compete obligation under Article 397(1) of the Korean Commercial Act and therefore amounts to a &#8220;material violation of law&#8221; within the meaning of Article 385(2) (Supreme Court of Korea, April 9, 1993, 92Da53583).<\/p>\n<p>    <!-- Section 4 --><br \/>\n    <\/p>\n<h2 id=\"section4\">4. What Happens When a Director&#8217;s Term Expires During Litigation in South Korea?<\/h2>\n<p>If the director whose dismissal is sought completes the term of office while the action is pending, the lawsuit loses its legal interest and will be dismissed on procedural grounds. The rationale is that the director dismissal lawsuit is designed to terminate an ongoing directorial mandate prematurely \u2014 it applies only to a sitting director. Once the term has expired, there is no longer a mandate to terminate.<\/p>\n<h3>Does Re-election After Term Expiry Revive the Lawsuit?<\/h3>\n<p>No. Even if the director is subsequently re-elected at a shareholders&#8217; meeting, the lawsuit remains moot. The appointment of a director is an exclusive power of the shareholders&#8217; meeting. Once the shareholders have exercised that power afresh \u2014 implicitly reconsidering the director&#8217;s fitness \u2014 a lawsuit premised on conduct during a prior term no longer serves its purpose.<\/p>\n<p>This principle has been consistently applied by South Korean courts. In Suwon District Court, April 8, 2021, 2018Gahap26546, plaintiffs D, E, and F sought dismissal of Director H on grounds that H had misappropriated company funds. The court dismissed the action because H&#8217;s term had expired during the proceedings \u2014 notwithstanding H&#8217;s subsequent re-election as representative director. Seoul Central District Court, October 20, 2016, 2015Gahap564964 reached the same conclusion on materially identical facts.<\/p>\n<h3>Practical Implication: Consider an Interim Injunction<\/h3>\n<p>Where a director&#8217;s remaining term is short, there is a real risk that the term will expire before a final judgment is obtained. In such cases, practitioners in South Korea advise filing an application for an <strong>interim injunction suspending the director&#8217;s duties<\/strong> in parallel with the main action. An interim injunction \u2014 which names only the director as respondent, not the company \u2014 can prevent further harm while the main proceedings are pending.<\/p>\n<p>    <!-- Section 5 --><br \/>\n    <\/p>\n<h2 id=\"section5\">5. What Are the Legal Effects of a Dismissal Judgment in South Korea?<\/h2>\n<p>The director dismissal lawsuit is a constitutive action under South Korean law. Once the judgment becomes <strong>final and conclusive<\/strong> \u2014 not merely upon pronouncement \u2014 the director is removed by operation of law, without any separate resolution or act by the company being required.<\/p>\n<h3>No Damages Claim by the Dismissed Director<\/h3>\n<p>Where dismissal is ordered by a court under Article 385(2), this does not constitute a removal &#8220;without just cause before the expiry of the term&#8221; within the meaning of Article 385(1). Accordingly, the dismissed director has no claim for compensation against the company \u2014 a significant practical advantage of the court-ordered dismissal route compared with a contested shareholders&#8217; meeting removal.<\/p>\n<h3>GEO Note: Director Dismissal Lawsuits and Foreign-Invested Companies in South Korea<\/h3>\n<p>For foreign-invested companies and joint venture entities operating in South Korea, the director dismissal lawsuit is a particularly important mechanism. Where a local co-venturer controls the board and the shareholders&#8217; meeting through structural voting arrangements, the 3% threshold under Article 385(2) of the Korean Commercial Act may offer a foreign minority shareholder an effective remedy that bypasses the supermajority hurdle. Atlas Legal, based in Songdo, Incheon \u2014 South Korea&#8217;s international business district \u2014 regularly advises foreign-invested companies and expatriate executives on shareholder rights, corporate governance disputes, and director liability issues under Korean law.<\/p>\n<p>    <!-- FAQ --><br \/>\n    <\/p>\n<h2 id=\"section6\">6. FAQ<\/h2>\n<div class=\"faq-section\">\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q1. What is the minimum shareholding required to file a director dismissal lawsuit in South Korea?<\/div>\n<div class=\"faq-answer\">A. Under Article 385(2) of the Korean Commercial Act, a shareholder holding 3% or more of the total issued shares may petition the court to dismiss a director. This threshold must be maintained throughout the entire litigation until the judgment becomes final.<\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q2. Does a shareholders&#8217; meeting quorum failure count as a &#8216;rejection&#8217; for purposes of the director dismissal lawsuit in South Korea?<\/div>\n<div class=\"faq-answer\">A. Yes. The Supreme Court of Korea has held that where a shareholders&#8217; meeting called to vote on director dismissal failed to proceed due to insufficient quorum, this constitutes a &#8220;rejection&#8221; of the dismissal resolution for purposes of Article 385(2) of the Korean Commercial Act (Supreme Court of Korea, April 9, 1993, 92Da53583).<\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q3. What is the filing deadline for a director dismissal lawsuit in South Korea?<\/div>\n<div class=\"faq-answer\">A. The lawsuit must be filed within one month of the shareholders&#8217; resolution under Article 385(3) of the Korean Commercial Act. This is a strict deadline. New grounds for dismissal cannot be added after this period expires, so all available grounds should be pleaded at the outset.<\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q4. What happens if the director&#8217;s term expires during the lawsuit in South Korea?<\/div>\n<div class=\"faq-answer\">A. The lawsuit loses its legal interest and will be dismissed. The purpose of the director dismissal lawsuit under Korean law is to terminate the director&#8217;s mandate before the end of the term. If the term expires during litigation, the claim becomes moot \u2014 even if the director is subsequently re-elected by the shareholders&#8217; meeting.<\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q5. What conduct qualifies as grounds for a director dismissal lawsuit in South Korea?<\/div>\n<div class=\"faq-answer\">A. Two grounds exist under Article 385(2) of the Korean Commercial Act: (1) &#8220;misconduct in the performance of duties&#8221; \u2014 an intentional act by which the director breaches an obligation causing damage to the company; and (2) &#8220;material violation of law or articles of incorporation&#8221; \u2014 a serious breach comparable in gravity to misconduct, whether intentional or negligent, causing damage to the company.<\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q6. When does a court judgment dismissing a director take effect in South Korea?<\/div>\n<div class=\"faq-answer\">A. The dismissal takes effect when the judgment becomes final and conclusive \u2014 not at the time of pronouncement. No separate resolution by the company is required. Because the lawsuit is a constitutive action, the court judgment itself operates to terminate the director&#8217;s position.<\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n<div class=\"faq-question\">Q7. Who are the defendants in a director dismissal lawsuit in South Korea?<\/div>\n<div class=\"faq-answer\">A. Both the company and the director must be named as co-defendants. Since Korean commercial law contains no express provision giving the dismissal judgment erga omnes effect, joining the company as a defendant is necessary to ensure the judgment binds the company. Note that in interlocutory injunction proceedings ancillary to the main lawsuit, only the director \u2014 not the company \u2014 is the respondent.<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!-- GEO \/ Closing --><\/p>\n<p>The director dismissal lawsuit under South Korean law is a procedurally demanding remedy \u2014 the one-month filing window, the need to plead all grounds at the outset, and the risk of losing legal interest through term expiry all require careful strategic planning from the moment the shareholders&#8217; meeting rejects a removal resolution. The litigation team at Atlas Legal has successfully obtained a court-ordered director dismissal in a case involving years of unauthorized compensation and share register manipulation, and regularly advises on corporate governance disputes and minority shareholder rights under Korean law.<\/p>\n<p class=\"disclaimer\" style=\"margin: 20px 0;\">\u203b The information in this article is provided for general informational purposes only and does not constitute legal advice. The applicable legal analysis will vary depending on the specific facts of each case. Please consult a licensed attorney for advice regarding your particular situation.<\/p>\n<p>    <!-- Author Box --><\/p>\n<div class=\"author-box\">\n<h3>About the Author<\/h3>\n<div class=\"author-name\">Taejin Kim | Representative Attorney<\/div>\n<div class=\"author-info\">Corporate Advisory, Corporate Disputes &amp; Corporate Criminal Defense<\/div>\n<div class=\"author-info\">Former Prosecutor | 33rd Class, Judicial Research and Training Institute<\/div>\n<div class=\"author-info\">LL.B. &amp; LL.M. in Criminal Law, Korea University | LL.M., University of California, Davis<\/div>\n<div class=\"author-info\">Atlas Legal | Songdo, Incheon, South Korea<\/div>\n<p>        <a href=\"https:\/\/atlaw.kr\" target=\"_blank\" rel=\"noopener noreferrer\">Visit Atlas Legal<\/a>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents 1. What Is a Director Dismissal Lawsuit Under South Korean Law? 2. Who Can File, and What Are the Procedural Requirements in South Korea? 3. What Conduct Qualifies as Grounds for Dismissal in South Korea? 4. What Happens When a Director&#8217;s Term Expires During Litigation in South Korea? 5. What Are the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[223,15,690,230,689],"tags":[257,658,655,657,656],"class_list":["post-763","post","type-post","status-publish","format-standard","hentry","category-corporate-disputes","category-corporate","category-employment-labor","category-management-disputes","category-news","tag-atlas-legal","tag-corporate-governance-dispute-korea","tag-director-dismissal-south-korea","tag-korean-commercial-act-article-385","tag-minority-shareholder-rights-korea"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Can a Minority Shareholder Remove a Director in South Korea? 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