AMCHAM Korea

Legal Entity Registration of AMCHAM Korea

Since 1953, AMCHAM Korea has served as the voice of American
businesses in Korea and a promoter of robust trade between the U.S. and Korea. Over the years,
the growing economic relationship between the two countries bolstered the growth of AMCHAM as well.
The operational structure of AMCHAM has also evolved to support the growth
and ensure prompt support of the needs of its member companies.

Ensuring Fiscal Stability and Transparency

In February 2017, an independent third party was commissioned to undertake a study of AMCHAM’s current operations and make recommendations on how best to structure the organization to ensure fiscal stability, proper controls and full transparency, while maintaining compliance with Korean laws and regulations. The study examined the current governance and operational structure and explored ways to eliminate potential risks. The study resulted in a recommendation that AMCHAM formally register itself as a legal not for profit entity approved by the Ministry of Trade, Industry & Energy (MOTIE). After careful deliberation by the EXCOM and the Board of Governors, it was unanimously agreed to seek a formal registration that would reorganize AMCHAM as a legal association in Korea known as a sadan beobin (사단 법인).
Long Term Growth

In March 2018, AMCHAM submitted the required documents for legal entity registration to MOTIE. To align with Korean laws and regulations, the previous Constitution of AMCHAM was modified into two separate documents known as the Articles of Incorporation and Articles of Governance. The core substance and intent of the Constitution was preserved. Limited modifications were made to improve clarity and reflect harmonization with the applicable regulations. The registration will enhance the transparency of AMCHAM Korea and ensure that AMCHAM can continue to fulfill its mission long into the future. Members are encouraged to read the FAQ in the following pages for additional details.

FAQ

GENERAL

Chapter 1.

Is the legal entity registration necessary?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 2.

Who decided to make the change, and when?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 3.

What type of legal entity will AMCHAM be?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 1.

Why is the Chamber registering with the Ministry of Trade, Industry, and Energy (MOTIE)?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 2.

What major change is the registration bringing?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 3.

Does this change affect members?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.

MEMBERSHIP

Chapter 1.

Do members need to take any action?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 2.

Are there changes in membership fees and dues?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 3.

Is there change to membership eligibility?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 3.

Are there any changes in my rights and privileges as a member?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.

GOVERNANCE

Chapter 1.

Are there changes to the existing Constitution?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 2.

Does the change mean AMCHAM is becoming a for-profit organization?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 3.

Is the governance body changed?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 1.

What is the difference between Board of Directors and Board of Governors?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 2.

Who legally represents AMCHAM?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.
Chapter 3.

Is there change in the roles of the Chairman and CEO or the Chairman of the Board of Governors?

Yes. Formal registration as a legal entity will establish rigorous governance and compliance mechanisms that will ensure AMCHAM’s transparency and independence. It will enable AMCHAM to compliantly diversify funding that will support the Chamber operations and strengthen internal governance. In fact, AMCHAM organizations across Asia are undergoing similar reformation. Most recently the Asia-Pacific Council of American Chamber of Commerce (APCAC), an umbrella organization for AMCHAMs operating in Asia with a 50-year history, decided to legally incorporate in Singapore for similar purposes.

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