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Recent Developments

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Lee & Ko News

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Seminar/Event
Seminar on 'Global Reach of EU, U.S. and UK sanctions Against Russia'
Lee & Ko and Debevoise & Plimpton jointly held a seminar titled ‘Global Reach of EU, U.S. and UK sanctions Against Russia’ on September 7, 2023.

During the seminar, Robert Dura from Debevoise & Plimpton delivered a presentation focused on U.S. sanctions and export controls, while Konstantin Bureiko provided insights into EU and UK sanctions and export controls. Tony Dymond discussed cases involving conflicts arising from the intersection of sanctions/export controls and contractual obligations. 

Jungmin Pak from Lee & Ko shed light on the implications of U.S. sanctions and export controls for Korean companies, emphasizing the specific risks to which Korean companies are particularly exposed. Following the presentation, there was a vibrant discussion among the participating lawyers on best practices for screening, the significance of sanctions clauses in disputes, and the risks of sanctions circumvention transactions.
2023.09.26
Awards Ranking
Lee & Ko chosen as top law firm in all 24 sectors by ‘Asialaw Profiles 2023 (28th edition)’
Lee & Ko was selected as an outstanding law firm in all 24 sectors (below) of ‘Asialaw Profiles 2023 (28th edition)’ for three consecutive years.
 
 Industry Sectors: Aviation and Shipping, Banking and Financial Services, Consumer Goods and Services, Energy, Industrials and Manufacturing, Infrastructure, Insurance, Media and Entertainment, Pharmaceuticals and Life Sciences, Real Estate, Technology and Telecommunications
 
 Practice Areas: Banking and Finance, Capital Markets, Competition/Antitrust, Construction, Corporate and M&A, Dispute Resolution, Intellectual Property, Investment Funds, Labour and Employment, Private Equity, Regulatory, Restructuring and Insolvency, and Tax
 
In addition to the top law firm for all 8 categories of IFLR 1000 2023 edition, the firm has also been ranked as an outstanding law firm in all 24 categories of Asialaw profiles 2023 and was recognized once again for its high level of competence as a leading law firm in Korea. The fact that Lee & Ko was rated outstanding in all sectors evaluated by Asialaw should be taken as a considerable distinction which sets them apart from other domestic law firms that have only received outstanding rankings in certain fields.

Additionally, 41 Lee & Ko professionals were named Elite practitioner/ Distinguished practitioner/ Notable practitioner/ Rising star/ Senior Statesman and these individuals were provided special recognition for their expertise in the field.
 
Asialaw Profiles is published by Asialaw, which is an affiliate of the global financial journal Euromoney, and each year Asialaw Profiles ranks law firms and professionals in the Asia-Pacific region based on law firm submissions, interviews with lawyers and clients, and independent research and announces the results.
2023.09.15
Awards Ranking
Ju Bong Jang, selected as ‘Asia Top 15 TMT Lawyers 2023’ by ALB
ALB(Asian Legal Business) Magazine has recognized Lee & Ko’s attorney Ju Bong Jang as one of the ‘ALB Asia Top 15 TMT Lawyers’ for 2023. 

Mr. Ju Bong Jang is an expert attorney who has more than 20 years of experience in the area of TMT(Technology, Media and Telecommunications), and receives high level of recognition in the areas related to IT Broadcasting and Communications, Data Protection and Privacy, Consumer Disputes, Mergers and Acquisition and Corporate Advice. 

Recently, Mr. Jang has successfully conducted cases such as the public interest review and registration as key telecommunications business operator of a global data center operator, re-designation and designation of a global app market business operator as self-rating distributor related to games and OTT services, registration of TomTom and Caterpillar’s location information business, response to the leakage of personal information by a domestic travel platform operator, response to sanctions against conformity assessment body for telecommunications equipment, recall of products from global IT business operator, SK Telecom and SK Broadband’s mergers and acquisition of T-broad etc.

In addition, he is actively engaged in the public sector related to IT broadcasting and communications and personal information, such as serving as an advisor of the Ministry of Science and ICT and the Korea Communications Commission regarding the amendment of legislations including the Telecommunications Business Act and the Location Information Act(Act on the Protection and Use of Location Information), and as a member of the Personal Information Self-Regulation Council of the Personal Information Protection Commission. 

ALB Magazine is a legal magazine in the Asia-Pacific region published by Thomson Reuters, a prestigious legal business media. In this September issue, ALB Magazine has recognized top 15 TMT Lawyers who have shown exceptional performance in the TMT practice and have received high level of recognition based on the evaluation from clients and fellow professionals.
2023.09.14
Awards Ranking
Top Tier in ALB M&A Rankings 2023
Lee & Ko was consecutively selected as a top tier(Tier 1) law firm in ‘ALB M&A Rankings 2023’.

Lee & Ko’s M&A Team was also awarded “Best Deal Award(Chairman of the Jury’s Award)” at the 1st DealSite IB Awards earlier this year in recognition of its outstanding performance in the 1.6 trillion won acquisition of Hugel management rights by the GS Consortium, and won the “Cross-Border M&A Deal of the Year($2 billion+)" at the Asia Legal Awards 2023 hosted by The Asian Lawyer for its excellent advisory services in establishing the LG Energy Solutions - Stellantis electric vehicle battery joint venture(Nextar Energy). Lee & Ko continues to receive the top rankings in the area of M&A from all international media, including the global legal magazines such as Chambers Asia-Pacific, Legal 500, Asialaw Profiles, IFLR1000, etc. These recognitions from domestic and international media outlets highlight its exceptional capabilities in M&A deals. 
 
ALB is a legal magazine in the Asia-Pacific region published by Thomson Reuters, which annually evaluates law firms through surveys and interviews with M&A professionals in twelve countries.
2023.09.14
Seminar/Event
[Herald Economy] Lee & Ko holds “Forum for Response to Supply Chain Due Diligence” on the 18th
On September 11, 2023, Herald Economy reported that Lee & Ko will hold a “Forum for Response to Supply Chain Due Diligence – Focusing on Human Rights and Environmental Due Diligence” on September 18 with the Federation of Korean Industries and the National Human Rights Commission of Korea. In the forum, which consists of a total of three sessions, Se-ryeon Song, chairman of the Human Rights Governance Forum of the National Human Rights Commission of Korea, will be the first to present under the theme of “Introduction and Implications of Domestic Supply Chain Due Diligence Legislation”. Jeong-joo Yoo, head of the corporate policy team at the Federation of Korean Industries, will then present the “Problems of Supply Chain Due Diligence Legislation” and Tong-geun Seol, an attorney at Lee & Ko, will present the “Establishment of Supply Chain Due Diligence System and Corporate Countermeasures”. 
2023.09.11
Seminar/Event
[Money Today] Lee & Ko Successfully Concludes Seminar with the Korean In-House Lawyers Labor Academic Committee
On 8 September 2023, Money Today reported the news of Lee & Ko’s seminar held in collaboration with the Korean In-House Lawyers Labor Academic Committee on 7th September. During this seminar, Lee & Ko attorney Seung-wan Hahm presented on “Understanding Industrial Action under Labor Union Law,” while Lee & Ko attorney Young-jin Kim discussed “Understanding Legal Issues in Claims for Damages related to Unlawful Labor Union Actions.” Further, Lee & Ko attorney Chang-soo Jin, the head of Lee & Ko’s Employment & Labor Practice Group, commented that he felt “deepening one’s understanding of industrial actions and recent Supreme Court rulings on damages related to such actions will greatly benefit in-house lawyers dealing with corporate legal and labor matters.”
2023.09.08

Press & Releases

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[Financial News] Hyun Koo Kang of Lee & Ko publishes article on 'Key Issues in STOs' [Law Firm News].
On September 25, 2023, Financial News reported on an article published by Hyun Koo Kang of Lee & Ko.  Hyun Koo Kang, Co-Head of the Digital Finance Team at Lee & Ko, published an article titled "Review of Major Issues and Improvements in Practice Related to STOs" in Volume 24, Issue 2 of the Securities Law Review published in August.  The article discussed major legal issues and improvements in practice related to security token offerings (STOs), which are the issuance and distribution of tokens that have characteristics of a security.
2023.09.25
[The Bell] [IPO Movers] 'Dealmaker' Jun Woo Cho of Lee & Ko
On September 25, 2023, The Bell published an interview with Jun Woo Cho of Lee & Ko.  "Jun Woo Cho is a capital markets lawyer and has been practicing for over 13 years since joining Lee & Ko in 2010.  He is the head of its IPO advisory practice," said The Bell.  Mr. Cho cited Samsung Biologics’s listing on the Korean Securities Market as his most memorable IPO, saying, "It was a lot of work, but it was also a great opportunity to learn."
2023.09.25
[Law Times] Ju Bong Jang of Lee & Ko Named 'ALB Asia Top 15 TMT Lawyers 2023’
September 20, 2023 - In an announcement featured in Law Times, Ju Bong Jang, a partner at Lee & Ko, has been recognized as one of 'ALB's Asia Top 15 TMT Lawyers' for the year. This prestigious accolade, awarded by Asian Legal Business (ALB), highlights Attorney Jang’s exceptional expertise in the Technology, Media, and Telecommunications (TMT) field. With over two decades of experience in TMT, Attorney Jang has demonstrated his capabilities in areas such as IT, broadcasting, telecommunications, data privacy, consumer disputes, mergers and acquisitions, and general corporate matters.
2023.09.20
[Korea Herald Business] Lee & Ko attorney becomes the first Korean attorney to win the cross examination contest of an international arbitration advocacy competition
The Korea Herald Business reported on 18 September 2023 that Mr Yoo, an attorney of Lee & Ko, won the cross examination contest of the Remote Oral Advocacy Programme (ROAP) Asia 2023.  ROAP Asia is an advocacy competition for young and junior international arbitration practitioners in the Asia-Pacific region, and Mr Yoo is the first Korean attorney to win the cross examination contest.  Mr Yoo joined Lee & Ko’s international arbitration team in 2019.  He acts for clients in international construction and commercial arbitrations, and also advises on the enforcement and recognition of arbitral awards.
2023.09.18

Deals & Cases

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Overruling of Corrective Orders Against Naver and Gmarket for Breaching Personal Information Protection Regulations
In January 2021, the Personal Information Protection Commission (PIPC) issued corrective orders and imposed administrative fines against Naver Corp. (Naver) and Gmarket Inc. (Gmarket) due to the continuous increase in electronic commerce fraud cases, such as the misuse of open market seller accounts. The orders were issued based on the grounds that the sellers did not take sufficient security measures when accessing the system. The PIPC considered the third-party sellers on Naver and Gmarket as personal information handlers of Naver and Gmarket, and held Naver and Gmarket responsible for their management and supervision of personal information handlers. 

Lee & Ko, on behalf of Naver and Gmarket, filed a lawsuit to cancel the corrective orders. Lee & Ko presented various evidence from different angles to prove that the sellers were independent personal information controllers who received personal information from Naver and Gmarket, rather than personal information handlers of Naver and Gmarket, and argued that the orders were illegal and unfair. 

The district court accepted the arguments of Naver and Gmarket and canceled the corrective orders imposed by the PIPC.

This case was the first case that clarified the scope of personal information handlers and holds significant value as a precedent in terms of the role and responsibilities of platform service providers in relation to e-commerce businesses, including open markets. The case is currently ongoing at the appellate court, and Lee & Ko continues to represent Naver and Gmarket.
2023.06.30
Legal advice with respect to a dispute relating to a potential insurance claim arising from the losses caused by a defective tunnel construction in the Busan-Masan Double Track Private Investment Project.
In March 2020, during the construction of the double track as part of the Busan-Masan Double Track Private Investment Project, the segment of the underground tunnel that passes underneath a river was damaged, which led to the leakage of underground water and soil into the tunnel.  Since the occurrence of this accident, repairs are being undertaken to date, which are expected to result in repair/recovery costs amounting approximately to USD300 million and loss of profit up to USD100 million due to the delay of construction (KRW400 billion)

With respect to the construction, client has subscribed to Construction All Risk (“CAR”) Insurance, and presently there is a dispute regarding insurance proceeds payment between the client and the co-insurers relating to the accident, which is likely to develop into a legal dispute.  The legal issues that may be addressed in the prospective lawsuit are the subject of the insured interest, cause of the accident and whether the accident falls under a covered risk, obligation to explain the policy and whether the exclusions may apply to the accident due to the defective design and/or construction.  Especially, the lawsuit will require interpretations of the exclusions under the special conditions that reflect the special characteristics of the linear construction, e.g., warranty concerning sections clause and special conditions concerning the construction of tunnels, galleries, subsurface structures or installations under CAR policy.

Considering the lack of relevant of precedents relating to construction insurance in Korea, our team is providing comprehensive strategic advice regarding insurance claims to be made in the future, as well as advice on interpretation of the policies which include a wide jurisdictional research.  This case will be an important precedent and is expected to involve legal disputes in various insurance topics over the next several years.
2023.06.30
Advising on acquisition financing relating to MBK Partners and UCK Partners’ acquisition of Osstem Implant
Lee & Ko advised a group of lenders (with NH Investment & Securities acing as the mandated lead arranger) on one of the most notable acquisition financing deals in recent years, which involved MBK-UCK consortium acquiring a controlling stake in Osstem Implant Co., Ltd. (the largest dental manufacturer in Korea) through Dentistry Investment Co., Ltd. (a special purpose company set up by the consortium). The financing for this acquisition was structured to consist of (i) KRW1,700,000,000,000 bridge facility and (ii) KRW1,200,000,000,000 permanent facilities (KRW1,100,000,000,000 senior facility and KRW100,000,000,000 mezzanine facility). 

The acquisition aspect of the deal entailed two tender offers and a sale and purchase with the largest shareholder of the target company. The unprecedented size of the tender offers, especially amidst heated debates about whether or not Korea should adopt mandatory bid rules to ensure protection of general investors during M&A activities involving a listed company, was, in itself, enough to attract substantial market attention and scrutiny. 

Being a leading law firm in banking & finance, Lee & Ko’s team of lawyers took control of all legal, commercial and practical issues arising from the deal by, inter alia, providing its invaluable input and insight on structuring the financing aspect of the deal, negotiating key terms of financing, documenting the outcome of negotiations and arranging for the signing and closing, while also taking on the additional role of advising on tender offer processes to NH Investment & Securities. 

While working under time and other deal constraints was challenging, Lee & Ko’s team of lawyers have been successful in tapping into its abundant resources based on its unrivalled and time-tested legal expertise, experience and know-how in bringing this deal to a successful closing. Through this deal, Lee & Ko was able to demonstrate, once again, its exceptional capacity to tailor its advice and services to the specific, most ideal, deal structure for any given deal (including financing for the acquisition via tender offers), thereby highlighting its versatility and adaptability as legal advisor.

This transaction was led by Yeo Kyoon Yoon, Myoung Chul Kwak and Eui Yeon Jo, and assisted by Minsun Hwang.
2023.06.30
Legal advice on the legislation process for a law regulating actuaries.
Despite the actuaries’ significant role in designing and pricing insurance policies, premiums and pension plans and assessing accounting transparency, currently there is no statutory regulatory framework regulating actuaries, unlike other professionals such as attorneys, accountants or patent attorneys. As actuaries are widely employed in insurance companies, public pension agencies and other financial institutions, adopting a comprehensive regime regulating actuaries is nothing short of necessary.

Lee & Ko’s insurance practice group has a deep roster of insurance professionals who have long participated in the legislation and revision processes for the Insurance Business Act over the past few decades. The group also has capabilities to deploy various attorneys, former civil servants and former national assemblymen with experience in the executive/legislative agencies, the Regulation Reform Committee and the national assembly to offer the clients solutions-driven advice and obtain optimal results on their behalf.

Advising clients on the enactment of a new law is a much more challenging task than advising on the revision of an existing law. Lee & Ko’s unmatched competence and vast experience in the field has received a wide recognition in the field, leading to the appointment to advise on the legislation process for a potential law regulating actuaries. Lee & Ko’s Insurance and Reinsurance Practice Group worked intimately with the firm’s legislative consulting team, harnessing a collective expertise of leading attorneys and experienced professionals to meet the client’s needs.
 
2023.06.27
Successfully defended the South Korean government in a KRW 991.7 billion ISDS claim filed by the U.S.-based hedge fund Elliot
Representing the South Korean government against the U.S.-based hedge fund Elliot Investment Management, Lee & Ko secured a remarkable victory in the investor-state dispute settlement arbitration, which resulted in the tribunal granting only 7% of the KRW 991.7 billion total claim amount. 

This was a dispute concerning the merger between Samsung C&T Corp. and Cheil Industries Inc. in 2015 whereby Elliot claimed it could have earned long-term profits from its shareholding in Samsung C&T, but instead suffered losses due to the alleged illegal intervention by the South Korean government.  Elliot claimed that the South Korean government pressured the National Pension Service to vote in favour of the merger between Samsung C&T and Cheil Industries, which resulted in damages, and sought to recover compensation for KRW 991.7 billion.

This case received considerable media coverage over the years, not least for the multitude of civil and criminal proceedings connected with this case, with both parties engaging in intense legal battle for more than five years since 2018.  Lee & Ko successfully defended the case by applying extensive knowledge and experience in ISDS matters, conducting a thorough and in-depth analysis of a vast volume of materials, collaborating closely with foreign law firms, and developing compelling arguments for some of the most critical issues.
2023.06.20
Advised CJ CGV on Capital Increase worth KRW 1 Trillion
On June 20, 2023, CJ CGV held a board of directors meeting and resolved a paid-in capital increase worth KRW 570 billion through a public offering of forfeited shares after a rights offering. CJ Corporation, which is the largest shareholder of CJ CGV, plans to participate in the rights offering (approximately KRW 60 billion worth of shares), and lead managers, which are Korea Investment & Securities, Samsung Securities and Shinhan Securities, plan to acquire the remaining shares after the public offering. In addition to the above, CJ CGV will allocate approximately KRW 450 billion worth of shares to CJ Corporation, and CJ Corporation will make an in-kind contribution of the 100% stake in CJ OliveNetworks.

Through this project, CJ CGV, by using a significant portion of the proceeds derived from the fundraising (KRW 380 billion) for the repayment of debt, will not only improve the debt-to-equity ratio from 912% to 297.7%, but will also improve the total equity to a significant degree, from KRW 356.6 billion to KRW 1146.6 billion. The capital increase will be completed by payment being made around September 14 and the issuance of new shares around September 27. Lee & Ko provided detailed advice on various complex issues arising from the simultaneous capital increase through public offering after a rights offering and a capital increase through third-party allotment by in-kind contribution.
2023.06.20
Alleged Unfair Trade Practices by Multinational Veterinary Pharmaceutical Company
A multinational veterinary pharmaceutical company (“Supplier”) entered into an exclusive distribution agreement (“Agreement”) with a Korean distributor (“Distributor”) and conducted business with the Distributor under the terms of the agreement until the Distributor changed its corporate governance structure. Following the change in the Distributor’s corporate governance structure, the Supplier terminated the exclusive distribution agreement based on the terms and conditions of the Agreement. The KFTC conducted an investigation into alleged violations of the MRFTA and Fair Agency Transactions Act (“Agency Act”) by the Supplier related to the following issues (i) the termination of the Agreement by the Supplier based on the change in the corporate governance structure of the Distributor, (ii) clauses on termination, the obligation to provide the Distributor a list of customers and records of transactions, and (iii) penalties for failing to meet minimum sales targets.    

Lee & Ko’s Antitrust & Competition Group addressed the issues raised by the KFTC asserting (i) the dispute is a private contractual matter between the parties and the Distributor is requesting financial compensation from the Supplier for exercising its rights under the Agreement, (ii) the Distributor was fully aware of the terms and conditions of the Agreement and exercised its own free will in entering into the Agreement so the Supplier was not in a superior bargaining position, and (iii) due to the nature of the Agreement and in supplying veterinary pharmaceutical products, the Supplier offered reasonable explanations for the clauses in question. Lee & Ko’s proactive approach to the investigation resulted in the Supplier being cleared of suspicions of violating the MRFTA and Agency Act.
2023.06.12

Newsletter

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Research

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