Briefly
On 29 January 2026, the Korean Nationwide Meeting handed an modification introducing statutory attorney-client privilege (ACP), granting attorneys and purchasers the best to guard confidential authorized communications and associated supplies. The modification is predicted to meaningfully have an effect on tax audits, investigations, and appeals by providing stronger safety in opposition to broad doc requests and using privileged supplies. Below the ACP regime, purchasers might freely talk about delicate tax or regulatory issues with their tax attorneys whereas guaranteeing that these communications stay confidential and shielded from seizure or disclosure, marking a major shift in safeguarding taxpayers’ protection rights all through investigative and judicial proceedings.
Background
Beforehand, the Korean authorized system imposed an obligation of confidentiality on attorneys concerning communications with their purchasers however didn’t grant them the corresponding proper to guard such communications. Accordingly, throughout state investigations, audits, and litigation processes, considerations had been constantly raised that the constitutional proper to efficient help of counsel was not being correctly upheld.
In opposition to this backdrop, on 29 January 2026, the Nationwide Meeting handed an modification to the Legal professional‑at‑Legislation Act (“Act”), thereby establishing the authorized foundation for formally recognizing ACP as a statutory proper. The modification will endure subsequent legislative procedures, together with deliberation by the State Council and approval by the President, earlier than being promulgated, and is scheduled to take impact one 12 months after its promulgation.
Key provisions of the amended Act
The modification introduces a brand new Article 26‑2 instantly after the prevailing Article 26 of the Act, which at the moment units forth attorneys’ responsibility of confidentiality. Below this newly established provision, attorneys and their purchasers, or people in search of to turn into purchasers, are granted (1) the best to not disclose to 3rd events any communications exchanged for the aim of offering or receiving authorized illustration or authorized companies, and (2) the best to not disclose any paperwork or supplies, together with these created or maintained in digital kind, which are ready in reference to litigation, investigations, or inquiries referring to issues they’ve been engaged to deal with.
Nevertheless, the newly added provision permits exceptions to the appliance of ACP in sure circumstances, together with the place (a) the shopper supplies express consent, (b) there’s a battle with vital public curiosity (e.g., the place an legal professional is concerned in a shopper’s unlawful actions, or the place a shopper makes use of authorized recommendation to commit a criminal offense), (c) disclosure is critical for an legal professional to train or defend their rights in a dispute with a shopper, or (d) a separate statute expressly supplies in any other case.
The related addendum of the Act stipulates that the modification will take impact one 12 months after its promulgation. However this normal rule, it additional supplies that the newly established Article 26‑2 shall additionally apply to communications or supplies exchanged previous to the efficient date of the Act, thereby leaving open the opportunity of retroactive utility.
What this implies for tax audits and appeals
The introduction of ACP is predicted to considerably have an effect on tax audits, investigations, and subsequent administrative and judicial appeals. Below the ACP regime, purchasers might freely talk about delicate tax or regulatory issues with their tax attorneys whereas guaranteeing that these communications stay confidential and shielded from seizure or disclosure.
Sometimes, taxpayers are sometimes required to supply huge quantities of paperwork and explanations throughout tax audits. Specifically, throughout dawn-raids or forensic sort investigations, communications with counsel akin to emails, authorized opinions, and memoranda have been usually collected with out limitation and used all through the audit and appeals course of. With the modification formally codifying ACP, taxpayers at the moment are anticipated to have an extra line of protection in opposition to extreme or overbroad doc requests or assortment efforts by the tax authorities, in addition to in opposition to using privileged supplies in subsequent appeals proceedings.
The ACP is additional anticipated to perform as an vital safeguard to guard taxpayers’ proper to protection and to make sure procedural equity in investigative and judicial proceedings, particularly for tax offense circumstances the place tax officers are vested with search and seizure powers and the authority to conduct witness interviews much like investigative companies.
That stated, the precise scope of ACP utility stays to be seen, because the modification doesn’t present detailed steering concerning its particular scope or authorized impact. Specifically, the modification doesn’t clearly prescribe the authorized penalties or obtainable treatments within the occasion of a violation of ACP and likewise expressly lists “the place a separate statue expressly stipulates in any other case” as an exception to its utility. Accordingly, additional legislative refinement or judicial interpretation will likely be wanted because the framework continues to develop.
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Seonhye Kim, Yeo Joon Yun and Jisoo Bae, Associates, have contributed to this authorized replace.
Briefly
On 29 January 2026, the Korean Nationwide Meeting handed an modification introducing statutory attorney-client privilege (ACP), granting attorneys and purchasers the best to guard confidential authorized communications and associated supplies. The modification is predicted to meaningfully have an effect on tax audits, investigations, and appeals by providing stronger safety in opposition to broad doc requests and using privileged supplies. Below the ACP regime, purchasers might freely talk about delicate tax or regulatory issues with their tax attorneys whereas guaranteeing that these communications stay confidential and shielded from seizure or disclosure, marking a major shift in safeguarding taxpayers’ protection rights all through investigative and judicial proceedings.
Background
Beforehand, the Korean authorized system imposed an obligation of confidentiality on attorneys concerning communications with their purchasers however didn’t grant them the corresponding proper to guard such communications. Accordingly, throughout state investigations, audits, and litigation processes, considerations had been constantly raised that the constitutional proper to efficient help of counsel was not being correctly upheld.
In opposition to this backdrop, on 29 January 2026, the Nationwide Meeting handed an modification to the Legal professional‑at‑Legislation Act (“Act”), thereby establishing the authorized foundation for formally recognizing ACP as a statutory proper. The modification will endure subsequent legislative procedures, together with deliberation by the State Council and approval by the President, earlier than being promulgated, and is scheduled to take impact one 12 months after its promulgation.
Key provisions of the amended Act
The modification introduces a brand new Article 26‑2 instantly after the prevailing Article 26 of the Act, which at the moment units forth attorneys’ responsibility of confidentiality. Below this newly established provision, attorneys and their purchasers, or people in search of to turn into purchasers, are granted (1) the best to not disclose to 3rd events any communications exchanged for the aim of offering or receiving authorized illustration or authorized companies, and (2) the best to not disclose any paperwork or supplies, together with these created or maintained in digital kind, which are ready in reference to litigation, investigations, or inquiries referring to issues they’ve been engaged to deal with.
Nevertheless, the newly added provision permits exceptions to the appliance of ACP in sure circumstances, together with the place (a) the shopper supplies express consent, (b) there’s a battle with vital public curiosity (e.g., the place an legal professional is concerned in a shopper’s unlawful actions, or the place a shopper makes use of authorized recommendation to commit a criminal offense), (c) disclosure is critical for an legal professional to train or defend their rights in a dispute with a shopper, or (d) a separate statute expressly supplies in any other case.
The related addendum of the Act stipulates that the modification will take impact one 12 months after its promulgation. However this normal rule, it additional supplies that the newly established Article 26‑2 shall additionally apply to communications or supplies exchanged previous to the efficient date of the Act, thereby leaving open the opportunity of retroactive utility.
What this implies for tax audits and appeals
The introduction of ACP is predicted to considerably have an effect on tax audits, investigations, and subsequent administrative and judicial appeals. Below the ACP regime, purchasers might freely talk about delicate tax or regulatory issues with their tax attorneys whereas guaranteeing that these communications stay confidential and shielded from seizure or disclosure.
Sometimes, taxpayers are sometimes required to supply huge quantities of paperwork and explanations throughout tax audits. Specifically, throughout dawn-raids or forensic sort investigations, communications with counsel akin to emails, authorized opinions, and memoranda have been usually collected with out limitation and used all through the audit and appeals course of. With the modification formally codifying ACP, taxpayers at the moment are anticipated to have an extra line of protection in opposition to extreme or overbroad doc requests or assortment efforts by the tax authorities, in addition to in opposition to using privileged supplies in subsequent appeals proceedings.
The ACP is additional anticipated to perform as an vital safeguard to guard taxpayers’ proper to protection and to make sure procedural equity in investigative and judicial proceedings, particularly for tax offense circumstances the place tax officers are vested with search and seizure powers and the authority to conduct witness interviews much like investigative companies.
That stated, the precise scope of ACP utility stays to be seen, because the modification doesn’t present detailed steering concerning its particular scope or authorized impact. Specifically, the modification doesn’t clearly prescribe the authorized penalties or obtainable treatments within the occasion of a violation of ACP and likewise expressly lists “the place a separate statue expressly stipulates in any other case” as an exception to its utility. Accordingly, additional legislative refinement or judicial interpretation will likely be wanted because the framework continues to develop.
*****
Seonhye Kim, Yeo Joon Yun and Jisoo Bae, Associates, have contributed to this authorized replace.
