[Korea Economic Daily] “Without knowledge of collusion, there may be liability for damages…” Risk of Shareholder Derivative Lawsuits by National Pension Service [Lee & Ko’s Antitrust & Competition Practice Group]

On January 22, 2025, an article by Lee & Ko partner Byong Ki Chung was published in the Korean Economic Daily. In Mr. Chung’s article titled “Without knowledge of collusion, there may liability for damages…Will the National Pension Service file shareholder derivative lawsuit”, he explained that, “There is a surge in shareholder derivative lawsuits against companies issued administrative fines by the Korea Fair Trade Commission for collusion; and companies should be on high alert, especially considering the court decision recognizing that even without direct knowledge of collusion, CEOs may be liable for damages.” He added, “Although the National Pension Service has yet to file a shareholder derivative lawsuit related to collusion, this could change with a shift in politics or a shareholder protectionist movement, thus making it prudent for companies to exercise caution. As the basis for holding CEOs liable has strengthened significantly, it is of the utmost importance to establish an effective compliance monitoring system beyond that of formal systems of internal controls.”