Understanding the term “related party” is crucial when dealing with business, legal, or financial matters in Korea, as it involves specific regulations and implications. This guide explains the core Korean term 특수관계인 (teuk-su-gwan-gye-in) and related concepts, helping you navigate contexts where identifying these relationships is important.
Table Of Content
Core Term
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Expression: 특수관계인
Pronunciation: teuk-su-gwan-gye-in
Meaning: Related party; specially related person (This term refers to individuals or entities that have a special relationship with a company or individual, often defined by law, such as major shareholders, executives, their relatives, or affiliated companies.)
Key Concepts and Related Terms
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Expression: 관계회사
Pronunciation: gwan-gye-hoe-sa
Meaning: Affiliated company; related company -
Expression: 지배주주
Pronunciation: ji-bae-ju-ju
Meaning: Controlling shareholder -
Expression: 주요주주
Pronunciation: ju-yo-ju-ju
Meaning: Major shareholder -
Expression: 임원
Pronunciation: im-won
Meaning: Executive officer; director -
Expression: 친족
Pronunciation: chin-jok
Meaning: Relatives; kin -
Expression: 계열사
Pronunciation: gye-yeol-sa
Meaning: Subsidiary; affiliate (often used in the context of conglomerates or ‘chaebols’) -
Expression: 이해관계자
Pronunciation: i-hae-gwan-gye-ja
Meaning: Interested party; stakeholder -
Expression: 법인
Pronunciation: beo-bin
Meaning: Corporation; legal entity -
Expression: 개인
Pronunciation: gae-in
Meaning: Individual -
Expression: 특수관계
Pronunciation: teuk-su-gwan-gye
Meaning: Special relationship -
Expression: 상법
Pronunciation: sang-beop
Meaning: Commercial Act; commercial law -
Expression: 세법
Pronunciation: se-beop
Meaning: Tax law
Understanding the Scope
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Expression: 특수관계인의 범위는 법률로 정해져 있습니다.
Pronunciation: teuk-su-gwan-gye-in-ui beo-mwi-neun beom-nyul-lo jeong-hae-jyeo it-seum-ni-da.
Meaning: The scope of related parties is defined by law. -
Expression: 회사와 특수관계인 간의 거래는 규제 대상입니다.
Pronunciation: hoe-sa-wa teuk-su-gwan-gye-in gan-ui geo-rae-neun gyu-je dae-sang-im-ni-da.
Meaning: Transactions between a company and its related parties are subject to regulation. -
Expression: 특수관계인에는 임원 및 그 친족이 포함됩니다.
Pronunciation: teuk-su-gwan-gye-in-e-neun im-won mit geu chin-jok-i po-ham-doem-ni-da.
Meaning: Related parties include executives and their relatives. -
Expression: 지배주주도 특수관계인에 해당합니다.
Pronunciation: ji-bae-ju-ju-do teuk-su-gwan-gye-in-e hae-dang-ham-ni-da.
Meaning: Controlling shareholders are also considered related parties. -
Expression: 관계회사 역시 특수관계인으로 분류될 수 있습니다.
Pronunciation: gwan-gye-hoe-sa yeok-si teuk-su-gwan-gye-in-eu-ro bul-lyu-doel su it-seum-ni-da.
Meaning: Affiliated companies can also be classified as related parties. -
Expression: 특수관계인 여부를 확인해야 합니다.
Pronunciation: teuk-su-gwan-gye-in yeo-bu-reul hwa-gin-hae-ya ham-ni-da.
Meaning: We need to check whether they are a related party. -
Expression: 세법상 특수관계인의 정의는 다를 수 있습니다.
Pronunciation: se-beop-sang teuk-su-gwan-gye-in-ui jeong-ui-neun da-reul su it-seum-ni-da.
Meaning: The definition of related parties under tax law may differ. -
Expression: 공정거래법에서도 특수관계인을 규정하고 있습니다.
Pronunciation: gong-jeong-geo-rae-beo-be-seo-do teuk-su-gwan-gye-in-eul gyu-jeong-ha-go it-seum-ni-da.
Meaning: The Fair Trade Act also defines related parties. -
Expression: 특수관계인과의 거래 내역을 공시해야 합니다.
Pronunciation: teuk-su-gwan-gye-in-gwa-ui geo-rae nae-yeo-geul gong-si-hae-ya ham-ni-da.
Meaning: Details of transactions with related parties must be disclosed. -
Expression: 이 계약 상대방은 우리 회사의 특수관계인인가요?
Pronunciation: i gye-yak sang-dae-bang-eun u-ri hoe-sa-ui teuk-su-gwan-gye-in-in-ga-yo?
Meaning: Is this counterparty a related party to our company?
Phrases for Business Contexts
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Expression: 이 거래는 특수관계인과의 거래에 해당합니다.
Pronunciation: i geo-rae-neun teuk-su-gwan-gye-in-gwa-ui geo-rae-e hae-dang-ham-ni-da.
Meaning: This transaction qualifies as a related party transaction. -
Expression: 특수관계인 명단을 제출해야 합니다.
Pronunciation: teuk-su-gwan-gye-in myeong-dan-eul je-chul-hae-ya ham-ni-da.
Meaning: You must submit a list of related parties. -
Expression: 감사 보고서에 특수관계인 정보가 포함되어 있습니다.
Pronunciation: gam-sa bo-go-seo-e teuk-su-gwan-gye-in jeong-bo-ga po-ham-doe-eo it-seum-ni-da.
Meaning: The audit report includes information on related parties. -
Expression: 특수관계인 거래의 공정성을 검토해야 합니다.
Pronunciation: teuk-su-gwan-gye-in geo-rae-ui gong-jeong-seong-eul geom-to-hae-ya ham-ni-da.
Meaning: We need to review the fairness of related party transactions. -
Expression: 법무팀에 특수관계인 해당 여부를 문의해 보세요.
Pronunciation: beom-mu-tim-e teuk-su-gwan-gye-in hae-dang yeo-bu-reul mun-ui-hae bo-se-yo.
Meaning: Please inquire with the legal team about whether they qualify as a related party. -
Expression: 특수관계인과의 자금 거래는 신중해야 합니다.
Pronunciation: teuk-su-gwan-gye-in-gwa-ui ja-geum geo-rae-neun sin-jung-hae-ya ham-ni-da.
Meaning: Financial transactions with related parties require caution. -
Expression: 이사회 승인이 필요한 특수관계인 거래입니다.
Pronunciation: i-sa-hoe seung-in-i pil-yo-han teuk-su-gwan-gye-in geo-rae-im-ni-da.
Meaning: This is a related party transaction that requires board approval. -
Expression: 세무 조사 시 특수관계인 거래를 주의 깊게 봅니다.
Pronunciation: se-mu jo-sa si teuk-su-gwan-gye-in geo-rae-reul ju-ui gip-ge bom-ni-da.
Meaning: Tax audits pay close attention to related party transactions. -
Expression: 특수관계인 간 부당 지원 행위는 금지됩니다.
Pronunciation: teuk-su-gwan-gye-in gan bu-dang ji-won haeng-wi-neun geum-ji-doem-ni-da.
Meaning: Unfair support activities between related parties are prohibited. -
Expression: 주주총회에서 특수관계인과의 거래 승인 안건이 있습니다.
Pronunciation: ju-ju-chong-hoe-e-seo teuk-su-gwan-gye-in-gwa-ui geo-rae seung-in an-kkeon-i it-seum-ni-da.
Meaning: There is an agenda item at the shareholders’ meeting regarding the approval of transactions with related parties. -
Expression: 회계 기준에 따라 특수관계인 정보를 주석에 기재합니다.
Pronunciation: hoe-gye gi-jun-e tta-ra teuk-su-gwan-gye-in jeong-bo-reul ju-seo-ge gi-jae-ham-ni-da.
Meaning: According to accounting standards, related party information is disclosed in the notes.
Cultural Tips
The concept of 특수관계인 (teuk-su-gwan-gye-in) is particularly significant in the Korean business environment due to the prevalence of large family-controlled conglomerates (재벌, jae-beol). Regulations surrounding related parties aim to ensure transparency and prevent unfair internal dealings that could disadvantage minority shareholders or distort fair market competition.
The definition of a 특수관계인 under Korean law (like the Commercial Act or Fair Trade Act) can be quite broad, often encompassing not only immediate family members (spouse, children) but also more distant relatives, executives of affiliated companies, and entities under common control. Understanding this broad scope is vital.
Disclosure of transactions with related parties is a mandatory requirement in financial reporting and corporate governance disclosures in Korea. Failure to properly identify and disclose these relationships and transactions can lead to legal and reputational risks for companies.
Due diligence processes in Korea often involve a careful examination of potential 특수관계인 issues, especially in mergers, acquisitions, or significant investment deals. Foreign companies doing business in Korea should be aware of these regulations and ensure compliance.
Real Conversation Example
Situation: Two colleagues in an accounting firm are reviewing documents for a client audit.
Roles: A (Senior Accountant), B (Junior Accountant)
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Expression: A: 이 거래 내역 좀 보세요. 계약 상대방이 혹시 특수관계인인가요?
Pronunciation: i geo-rae nae-yeok jom bo-se-yo. gye-yak sang-dae-bang-i hok-si teuk-su-gwan-gye-in-in-ga-yo?
Meaning: A: Take a look at this transaction record. Is the counterparty possibly a related party? -
Expression: B: 네, 확인해 보니 대표이사님의 동생분이 운영하는 회사입니다. 특수관계인에 해당합니다.
Pronunciation: ne, hwa-gin-hae bo-ni dae-pyo-i-sa-nim-ui dong-saeng-bun-i un-yeong-ha-neun hoe-sa-im-ni-da. teuk-su-gwan-gye-in-e hae-dang-ham-ni-da.
Meaning: B: Yes, I checked, and it’s a company run by the CEO’s younger sibling. It qualifies as a related party. -
Expression: A: 그럼 이 거래는 특수관계인 거래로 분류하고, 관련 규정에 따라 적절히 공시되었는지 확인해야겠네요.
Pronunciation: geu-reom i geo-rae-neun teuk-su-gwan-gye-in geo-rae-ro bul-lyu-ha-go, gwal-lyeon gyu-jeong-e tta-ra jeok-jeol-hi gong-si-doe-eot-neun-ji hwa-gin-hae-ya-gen-ne-yo.
Meaning: A: Then we need to classify this as a related party transaction and check if it was properly disclosed according to relevant regulations. -
Expression: B: 네, 알겠습니다. 특수관계인 명단과 거래 내역을 다시 한번 검토하겠습니다.
Pronunciation: ne, al-get-seum-ni-da. teuk-su-gwan-gye-in myeong-dan-gwa geo-rae nae-yeo-geul da-si han-beon geom-to-ha-get-seum-ni-da.
Meaning: B: Yes, understood. I will review the list of related parties and the transaction details once more.
Practice Tips
Understanding 특수관계인 (teuk-su-gwan-gye-in) is essential if you’re involved in Korean business, finance, or law! Try reading Korean business news articles or company disclosure reports (공시) – you’ll often find this term mentioned, especially regarding large companies~.
Practice saying the term and related phrases aloud. Pay attention to the context in which it’s used. Knowing who qualifies as a 특수관계인 can be complex, but recognizing the term is the first step! Good luck with your studies!
