5 Critical Clauses to Review Before Signing Any Advertising, Sponsorship, or Agency Deal
Attorney Kyusung Lee | International Contracts · Creator Law · Legal Counsel for Foreigners in Korea
About Attorney Kyusung Lee
| Education | Brown University – B.A. Economics, with honors / The Hotchkiss School |
| Credentials | Korean Bar Certified Startup-Specialized Attorney / CAMS |
| Experience | Former Legal Counsel, Samsung C&T Construction / Former Equity Research Analyst, BofA Merrill Lynch |
| Contact | +82-2-6264-7604 | kyusungii@gmail.com | http://www.kyusunglee.com |
I provide tailored legal advice for foreign creators and entrepreneurs operating in Korea — from contract review to dispute resolution. Feel free to reach out through the contact details above.
Introduction — “It’s in English, So It Must Be Fine” Is the Most Dangerous Assumption
The number of foreign YouTubers and content creators working in Korea is growing rapidly. Most enter into advertising, sponsorship, or agency agreements in English — and many assume that an English-language contract automatically meets international standards.
| If the contracting parties operate in Korea, and payments, taxes, and potential disputes all occur in Korea — then your contract must be adapted to comply with Korean law, regardless of the language it is written in. |
Failing to do so means that in a dispute, foreign law might apply in ways that disadvantage you. Here is what every foreign creator needs to check before signing.
Contract Clause Checklist at a Glance
| Clause | What to Verify |
| ① Governing Law & Jurisdiction | Confirm which country’s law applies and which court hears disputes |
| ② Revenue & Tax | Define ‘net profit’ / ‘after tax’; specify who bears withholding tax |
| ③ Copyright & Portrait Rights | Limit scope and duration of reuse; watch for ‘exclusive license’ / ‘assign all rights’ |
| ④ Business Registration & Visa | Confirm your registration type and visa status affect contract validity and taxes |
| ⑤ Termination & Dispute | Clarify termination conditions, penalties, and dispute mechanism (litigation vs. arbitration) |
① Governing Law and Jurisdiction — The First Thing to Check
The governing law and jurisdiction clauses are the first thing to examine in any English-language contract.
| Example: If your advertising contract states “Governing Law: English Law / Jurisdiction: High Court of London” — then even if a dispute arises entirely in Korea, you would have to litigate in the United Kingdom. |
If your content is produced in Korea and your collaboration is with a Korean company, designating Korean law as the governing law and the Seoul Central District Court as the jurisdiction is almost always the most practical and cost-effective choice. It means legal recourse is within reach — not halfway around the world.
② Revenue Sharing and Tax Clauses — The “After Tax” Trap
Revenue sharing and taxation are the most common sources of misunderstanding between foreign creators and Korean companies.
Revenue may come from advertising fees, sponsorships, merchandise, and more. But English contracts frequently use vague terms like “net profit” or “after tax” without further definition.
| “After tax” typically means payment after deducting Korean withholding tax (원천징수세). Depending on the applicable rate, this can significantly reduce the actual amount you receive. |
Foreign YouTubers may also have income tax and VAT reporting obligations under Korean tax law. A contract that specifies only a lump-sum payment without addressing taxes can become a major source of dispute later.
Your contract should explicitly state:
- ✓ Who bears the actual tax burden
- ✓ Who is responsible for tax reporting and filing
- ✓ The applicable withholding tax rate and the basis on which it is calculated
③ Copyright and Portrait Rights — Watch Out for “Exclusive License”
Intellectual property clauses are critical in content-related contracts. Because video production inherently incorporates a creator’s face, voice, and ideas, copyright and portrait rights are both at stake.
Your contract must clearly address:
- Whether the sponsor or partner may reuse your video for promotional purposes
- If reuse is permitted, the scope of permitted media and the duration of that right
- Whether you retain the right to request deletion after a specified period
| If the contract contains phrases like “exclusive license” or “assign all rights,” this may mean you are transferring full ownership of your content to the other party. Always limit the scope and duration of usage rights as precisely as possible. |
④ Business Registration and Visa Status
For full legal protection while working in Korea, it is safest to have your contracts reviewed by a Korean attorney before signing.
Many creators mistakenly believe that signing an “internationally standard” English contract is sufficient. But the contract must be translated and adapted to Korean law to be practically enforceable in Korea.
Before signing, make sure you have confirmed:
- How your business registration type (individual vs. corporate) affects contract validity and tax treatment
- How your visa status (work visa, business visa, etc.) affects the legal effectiveness of the contract
- Your tax obligations under Korean law as a resident or non-resident
Final Advice from Attorney Kyusung Lee
If you are a creator primarily active in Korea, you must have your English contracts reviewed against Korean legal standards. Governing law, jurisdiction, revenue distribution, copyright, and taxation may seem like boilerplate — but they are almost always the core of any real dispute.
| A contract is not just a formality — it is your legal safeguard. Have it reviewed by an expert before you sign. |
Foreign creators face heightened risk due to language barriers and differences in legal systems. Whether you need a contract reviewed, guidance on tax obligations, or representation in a dispute, Attorney Kyusung Lee is here to help.
Tel: +82-2-6264-7604 | kyusungii@gmail.com | http://www.kyusunglee.com
Attorney Kyusung Lee | International Contracts · Creator Law · Legal Counsel for Foreigners in Korea
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