Recent Developments

On 27 October 2025, Lee & Ko successfully hosted a seminar titled ‘The First 100 Days After A Dispute Arises: Settlement, Evidence, Forums, and Strategy’ during the Seoul ADR Festival 2025. Recognizing that early moves during the first 100 days of a cross-border dispute can determine the trajectory of the entire case, the seminar brought together seasoned dispute resolution specialists to share tactical insights on how parties can put their case on the strongest footing and seize the initiative before momentum is lost.

The seminar commenced with Opening Remarks and an Introduction by Dr. Eun Young Park, Head of the Global Disputes Group at Lee & Ko. The program featured two insightful panel discussions that explored key issues arising in the early stages of cross-border disputes.

In the first session, a panel discussion was held under the theme “Early Leverage: Emergency Relief and Settlement Strategies.”  The discussion was moderated by Zac Sharpe (Lee & Ko) and featured a panel consisting of Julian Bailey (Jones Day), Nakul Dewan KC (Twenty Essex), Hyunyang Koo (Lee & Ko), and Young Shin Um (KCAB). The panel shared meaningful insights on the practical viability of seeking early emergency relief in arbitral proceedings through courts and emergency arbitrators, the use of various methods of dispute resolution including consultations and mediation, as well as early settlement tactics taking into consideration factors such as the possibility of adverse cost awards and differing positions on without-prejudice privilege between jurisdictions. 

The second session, titled “Laying the Groundwork: Evidence, Strategy, and Tribunal Formation,” was moderated by Dr. Eun Young Park (Lee & Ko), and featured a panel consisting of Elodie Dulac (King & Spalding), Peter Turner KC (39 Essex Chambers), Han-Earl Woo (Lee & Ko), and Bami Yoo (Lee & Ko). This session addressed the necessary qualities of an arbitrator and the relationship between an arbitrator’s legal background and legal reasoning from the perspective of both counsel and arbitrator. The panelists also discussed practical tips and protocols for document retention, evidence gathering and the application of privilege with particular emphasis on the Korean context. 

The seminar was well received by in-house counsel and foreign law firm practitioners, as it offered practical perspectives on various early-stage strategies that parties can effectively utilize when a dispute arises.

Lee & Ko hosted its 11th M&A Forum on October 30, 2025, marking another successful year of this annual event. 

Since its inception in 2015, the Lee & Ko M&A Forum has served as a platform for introducing the latest issues in the M&A field and sharing Lee & Ko’s accumulated expertise with professionals in the industry. This year, the event once again received an enthusiastic response, with more than 500 M&A practitioners and corporate representatives participating both online and offline.

In Session 1 of the Forum, Partner Attorneys Dajoo Jung and Sejoong Lee presented on the topic of “Recent Trends in Corporate Control Disputes and Amendments to the Commercial Code.” They outlined the growing trend of control disputes arising amid the spread of shareholder activism and examined the potential impact of the recent amendments to the Commercial Code on such disputes, while also presenting practical strategies for corporate responses. By linking the highly discussed topic of the Commercial Code reform with corporate control disputes, the session drew strong attention and positive feedback from participants.

Session 2 featured Partner Attorney Hyung Soo Lee and Foreign Attorney Seung Hyo Baek, who presented “Recent Trends and Key Issues in Overseas Investment: Focus on Brownfield and Greenfield Projects.” They discussed recent developments in cross-border M&A, reviewing overseas investment trends over the past five years by distinguishing between Brownfield and Greenfield investments, and highlighting their respective characteristics and key considerations. The session concluded with additional presentations by Yun A Kang, Head of Lee & Ko’s Beijing Office, Jae Hoon Choi, Head of the Japan Team, and Woongryol Baek, Head of the Vietnam Office, who shared updates on regulatory trends and practical responses in the U.S., EU, China, Japan, and Vietnam, drawing strong interest from participants engaged in or preparing for cross-border M&A transactions.

Now in its 11th year, the remarkable attention and response that the Lee & Ko M&A Forum continues to receive from M&A professionals stem from our clients’ appreciation of the Forum’s well-prepared, insightful, and timely discussions led by the Lee & Ko M&A team.

Looking ahead, Lee & Ko’s Corporate Practice Group will continue its efforts to ensure that the M&A Forum remains a meaningful and insightful platform for M&A practitioners and corporate professionals in Korea.

On August 27, 2025, Lee & Ko successfully hosted a seminar titled “Analysis and Outlook on the Yellow Envelope Act”. The event provided a comprehensive examination of the proposed amendments to the Trade Union and Labor Relations Adjustment Act and their implications for businesses.

The seminar commenced with opening remarks by Mr. Kyung-Duk An, Senior Advisor and former Minister of Employment and Labor, setting the stage for an insightful discussion. The program featured two key sessions, followed by an interactive Q&A segment.

Session 1: Analysis of Labor-Related National Policy Agendas

Mr. Min-Seok Si, Head of Lee & Ko’s ESG Center, delivered a presentation on the new administration’s labor policy priorities. The session outlined six critical areas:
1.Reduction of actual working hours, annual leave reforms, and the comprehensive wage system.
2.Establishment of a fair wage system.
3.Extension of retirement age, pension reform, and prevention of wage arrears.
4.Expansion of labor law coverage.
5.Promotion of industry-wide bargaining and broader application of collective agreements.
6.Strengthening occupational safety and health frameworks.
Mr. Si provided a detailed analysis of the interconnections among these priorities and their potential impact on businesses.

Session 2: Analysis and Outlook of the Yellow Envelope Act

Mr. Jae-In Roh of Lee & Ko presented an in-depth overview of the Yellow Envelope Act, covering its conceptual framework, legislative history, and key provisions of the amended Act. The session also addressed the expected implications of the Act’s enactment, potential follow-up measures, and practical considerations for corporate compliance.

Q&A Session

The seminar concluded with a dynamic Q&A session, featuring Mr. Min-Seok Si, alongside Lee & Ko Attorneys Mr. Chang-Soo Jin, Hyun-Seok Song, and Jae-In Roh. The panel addressed pre-submitted and live questions from both in-person and online attendees, fostering a robust exchange of ideas.

This seminar provided in-house legal and HR professionals with valuable insights into the proposed amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, equipping attendees with the knowledge to navigate upcoming regulatory changes effectively.

A video recording of the seminar will be made available shortly.

On August 21, 2025, Lee & Ko successfully hosted its first official seminar in Singapore at the Fairmont Hotel under the theme “Korea Law, Policy, and Compliance: Navigating Legal Change and Uncertainty in a New Political Landscape.” The seminar commenced with welcoming remarks by Mr. V.K. Rajah SC, former Attorney General and Judge of Appeal of Singapore and independent arbitrator at Duxton Hill Chambers, followed by an opening address by Mr. Ho Joon Moon, Managing Partner of Lee & Ko. 

The program was moderated by Ms. Saemee Kim, Partner in Lee & Ko’s International Arbitration Team, and featured five in-depth sessions led by senior attorneys from various practice groups.

The first session was presented by Mr. Allen Hyungi Ryu, Senior Foreign Attorney in Lee & Ko’s Corporate and M&A Practice Group. Mr. Ryu addressed the recent amendments to the Korean Commercial Act and their impact on corporate governance, highlighting the expansion of directors’ fiduciary duties, revisions to the 3% rule on audit committee appointments, and the strengthening of minority shareholder rights. 

The second session was delivered by Mr. Jung Min Pak of Lee & Ko’s Banking & Finance Practice Group, who explored the topic of energy regulations and sanctions. He analyzed the expansion of nuclear and renewable energy, the intersection of energy security and international sanctions, and global trends in related regulations, and suggested strategic approaches for companies to respond to the energy transition and international regulatory environment.

The third session featured Mr. William Woojong Kim, Senior Foreign Attorney in Lee & Ko’s Labor & Employment Group, who addressed timely issues in the labor and employment sector. In particular, he discussed the main provisions and impact of the so-called “Yellow Envelope Law,” corporate risk management in light of amendments to labor-related laws, and practical strategies to respond to changes in labor–management relations.

The fourth session was presented by Mr. Younghoon Mok, Senior Foreign Attorney in Lee & Ko’s Telecommunications, Media, and Technology Group. He outlined Korea’s amended Personal Information Protection Act, the newly enacted AI Framework Act, and the phased rollout of the Virtual Asset User Protection Act. The presentation focused on the compliance issues for companies managing cross-border data transfers and introduced integrated risk management approaches.

The final session was delivered by Mr. Sanghoon Han, Partner in Lee & Ko’s International Arbitration Team and a Chartered Arbitrator. He provided an overview of Korea’s judicial system and its distinctive features in comparison with other jurisdictions. He focused on the strategic use of interim measures, such as provisional attachments and injunctions, in both litigation and arbitration. 

After the main sessions, Mr. Zac Sharpe, Co-Head of Lee & Ko’s International Arbitration Team led a lively Q&A session. The seminar concluded with closing remarks from Dr. Eun Young Park, Chair of the Global Disputes Group and Co-Head of the International Arbitration Team.  Dr. Park highlighted the importance of understanding Korea’s rapidly evolving legal landscape amid political and economic shifts.

As Lee & Ko’s first official event in Singapore, the seminar marked a meaningful step in strengthening our international presence. The firm received positive feedback from attendees who appreciated the practical insights, comparative approaches, and strategic guidance offered throughout the program.

On July 23, Lee & Ko sponsored a seminar entitled South Korea: 11th International Arbitration & Corporate Crime Summit, hosted by Legal Plus.

The day began with an Opening Address from Dr. Eun Young Park, Chair of Lee & Ko’s Global Disputes Group, who spoke on “The evolution of arbitration in Korea up to 2025, and the developments we can expect over the coming year.” Dr. Park reflected on the growth and transformation of the Korean arbitration landscape following the IMF crisis and noted the rapidly shifting global risk environment. He further emphasized the increasing risk of disputes in key industries such as healthcare, semiconductors, and electric vehicles, underscoring the importance of ensuring consistency across legal systems at the time of contract drafting.

The first panel discussion focused on negotiation strategies in international arbitration practice. Zac Sharpe, Co-Head of Lee & Ko’s International Arbitration Team, highlighted the practical issues arising from multi-tier dispute resolution clauses, noting that vague drafting can prolong disputes in practice. He stressed the risks of using “condition-precedent” language, the problems associated with ambiguous terminology when it comes to negotiation and mediation, and the importance of reviewing both the purpose and practical utility of such provisions in advance, particularly for joint venture, EPC, and supply contracts.

The second panel discussion addressed construction disputes at the intersection of global and local contexts, with a focus on damages and supply chain issues. The panelists discussed current issues such as the U.S. BABA Act, changes in European procurement regulations, Saudi Arabia’s “NEOM” project, and challenges in claim quantification across Southeast Asia. They pointed out the growing potential for disputes arising from design changes, inadequate contract documentation, and supply chain disruptions.

The third panel explored shareholder, director, and stakeholder disputes involving Korean and foreign companies, with a particular focus on practical strategies for in-house counsels on contract drafting and dispute prevention. Elizabeth Shin, Senior Foreign Attorney at Lee & Ko’s International Arbitration Team, referred to a recent case where the absence of a deadlock provision in a shareholders’ agreement resulted in a lengthy arbitration. She highlighted the need for alternative procedures in the event the parties fail to appoint an appraiser under a put-option clause, and emphasized that exit conditions and valuation dates should be set out with clarity.

The fourth panel examined emerging technology-related issues that have gained prominence in recent years, including digital asset tracing, AI-related risks, and global internal investigations. Panelists shared their insights and experiences spanning from cryptocurrency asset recovery, the use of NFT/SBT for process service, AI-driven fraud schemes, to cybersecurity threats, stressing the need for companies to heighten security awareness and proactively prepare for the application of new technologies.

Now in its 11th year, the seminar offered a multi-dimensional examination of diverse topics—from strategic use of arbitration and mediation in a volatile global disputes environment, to corporate governance disputes, construction claims, and IP and technology-related disputes. Drawing together in-house counsels, government officials, and arbitration practitioners from Korea and beyond, , the event served as a valuable platform for exchanging knowledge and ideas.
 

On July 18, 2025, Lee & Ko sponsored the seminar on 'Current Status of the Digital Asset Market and Major Legal Issues' hosted by Blockchain Law Society, Digital Asset eXchange Alliance (DAXA), and Digital Finance Law Forum.

In this seminar, the following summarizes the key presentations and discussions from each of the three sessions.

□ Session 1: Stablecoins and Monetary Policy — Internationalization of the KRW: Opportunity or Risk? (Session Chair: Hyun-Koo Kang, Attorney at Law Firm, Lee & Ko LLC)

• Presenter: Jong-Seung Kim, CEO, XCRYPTON

Introducing stablecoins for the internationalization of the KRW is undoubtedly a historical necessity and challenge. A limited internationalization experiment using KRW stablecoins as an offshore settlement method could be a viable alternative. A controlled experiment focused on trade settlements could allow for external distribution and capital flow management within manageable boundaries. However, unchecked expansion may accelerate de-KRWization and destabilize domestic capital controls. Therefore, a tightly controlled design is essential. For KRW stablecoins to reach the level of complementary currency, we must first experiment with a limited integrated internationalization model, and urgently establish legal and regulatory safeguards against risks such as currency speculation. Rather than simply debating issuance approval, we must deliberate on the necessary policy frameworks and institutional responses. The initiative must align with the Bank of Korea’s monetary policy and the Ministry of Economy and Finance’s foreign exchange policy. In the digital liquidity era, monetary and FX policies are inseparable, and internationalizing KRW stablecoins must proceed under strict control.

• Discussant: Jung-Doo Lee, Head of Center, Korea Institute of Finance

Institutionalizing KRW stablecoins is not optional but essential. However, with USD stablecoins accounting for over 90% of the global market and KRW stablecoins lacking a clear profit model, we must approach their competitiveness and utility with caution. Digital currencies, including stablecoins, are institutional tools with macroeconomic implications—not merely tech experiments. In the digital age, monetary and foreign exchange policies cannot be treated separately, necessitating integrated policy design. While we should leverage stablecoins’ utility, new regulatory and policy frameworks are needed to prevent financial market instability. Protection mechanisms for both domestically and internationally issued stablecoins must be promptly established.

• Discussant: Soo-Han Cho, Attorney at Law, UPRISE

If stablecoins are allowed, private companies will effectively create currency. To mitigate potential shocks, such as mass reserve liquidation impacting the bond market, these entities should meet bank-level capital and risk management requirements. Robust prudential supervision and risk response frameworks are essential—otherwise, systemic risks may increase. Although stablecoins offer payment utility, the current legal framework under the Electronic Financial Transactions Act, the Foreign Exchange Transactions Act, and the Capital Markets Act is incompatible. A new, separate regulatory statute is needed.


□ Session 2: Legal Issues on Foreign Participation in the Domestic Virtual Asset Market and Overseas Expansion of Domestic Service Providers (Session Chair: Jaejin Kim, Executive Vice Chairman, DAXA)

• Presenter: Chang-Min Chun, Professor, SeoulTech

Currently, foreign participation in Korea’s virtual asset market is effectively prohibited due to a 2017 administrative guidance from financial authorities. This vague “shadow regulation” exacerbates mismatches between FX and capital market regulation. To strengthen Korea’s global competitiveness, we must remove the dual barriers of foreign participation bans and restrictions on overseas expansion. Regulatory clarity and alignment with global standards are urgently needed. Practical solutions such as non-face-to-face real-name verification must be presented. The Special Financial Information Act, which imposes KYC and STR obligations directly on exchanges, is inconsistent with the current ban. Alternatives to consider include revoking the administrative ban, allowing institutional investors to open individual accounts, and enabling individual foreign investors to participate indirectly via "linked omnibus accounts" between domestic and qualified overseas exchanges. Applying capital market and FX-style monitoring and reporting systems to virtual asset service providers is worth exploring.

• Discussant: Seo-Hee Han, Attorney at Law, Barun Law LLC

Allowing foreigners into the Korean virtual asset market could increase foreign capital inflows. With today’s established AML technologies, foreigner onboarding is technically feasible. A paradigm shift in the financial authorities' perception and the provision of clear guidelines are urgently needed. Non-face-to-face real-name verification and issuance of real-name deposit/withdrawal accounts for foreigners should be enabled. If real-name accounts are difficult, then trading via USDT or USDC should be permitted. Use of standing agents and the implementation of non-face-to-face authentication systems for foreigners should be considered. For overseas expansion, allowing order book sharing with foreign subsidiaries under proper AML compliance and financial reporting could be a viable strategy.

• Discussant: Hae-Boong Lee, Director, Dunamu

We must attract "good money" while blocking "bad money" in the virtual asset market. Regulatory clarity and predictability are essential to managing global capital flows. As seen in the U.S. and elsewhere, Korea must clarify details under AML/CFT and FX laws. The issue is not a lack of regulation but lack of clarity. Based on the principle of reciprocity, we should consider gradually allowing investors from jurisdictions that meet FATF AML/CFT standards. A phased approval process, including regulatory sandboxes, could also be examined. Order book sharing with overseas partners should be allowed under certain conditions to attract foreign investors.

• Discussant: Jung-Ki Yoo, Attorney at Law, Bithumb

Korea is the only country where even legally residing foreigners cannot trade virtual assets. The AML infrastructure has significantly improved since the 2017 restriction. In light of the amended Special Financial Information Act and the upcoming User Protection Act, we must reconsider whether banning foreign participation is still a valid AML strategy. The current policy accelerates capital outflow to foreign exchanges. A more flexible, risk-based approach is needed. For overseas expansion, clear guidelines should be swiftly established, similar to the monitoring regime applied to financial investment companies.


□ Session 3: Corporate Participation in the Digital Asset Market and Spot ETF Issues
(Session Chair: Jong-Baek Park, Attorney at Law, Bae, Kim & Lee LLC)

• Presenter: Kyung-Eun Ryu, Professor, Korea University Law School

Corporate participation in the digital asset market can boost market credibility and attract global capital. However, at stage two, clearer definitions of professional investors, AML enhancement, and overseas monitoring systems are needed. At stage three, accounting, taxation, and disclosure frameworks must be in place to allow broader corporate participation. AML remains the top priority. Current law regulates fiat-to-fiat flows, but not crypto-to-fiat. Measures to prevent money laundering via shell companies must be developed to expand eligibility to general corporations.
For spot ETFs, the following prerequisites must be addressed:① Index computation methods and participant criteria,② Derivative-linked redemption mechanisms,③ Investor protection and sales regulations under the Financial Consumer Protection Act (e.g., suitability, duty to explain), and④ Capital gains and ETF trading tax regimes.If approved, institutional investment is expected to increase. However, a crash in the underlying asset could trigger bank runs and financial instability. Therefore, a comprehensive structure covering index calculation, custody/trust, liquidity provision, derivatives hedging, investor protection, and taxation is required.

• Discussant: Sung-Jin Kim, Director, Financial Services Commission (Virtual Asset Division)

Globally, regulatory trends are shifting from mere user protection toward reducing uncertainty and fostering innovation. Korea is also reviewing ways to allow corporate participation in stages to develop a healthier ecosystem. Regulatory alignment with Hong Kong, Singapore, the EU, and the U.S. is necessary. The Virtual Asset Committee can move quickly on matters not bound by law. Recognizing that there is no legal basis for the previous ban on corporate participation, Korea began allowing nonprofit entities in June 2025 and plans to release guidelines for professional investors later this year. While initial design focused on domestic corporations, there’s no reason to exclude foreign companies registered as professional investors. Spot ETF discussions must await amendments to the Capital Markets Act and development of risk management measures. Foreign and domestic spot ETF issues must be distinguished—distribution of foreign-approved products via Korean securities firms differs legally from domestic creation. Several phased scenarios are possible.

• Discussant: Se-Woon Hwang, Senior Research Fellow, Korea Capital Market Institute

Institutional participation contributes to risk diversification in stable markets but may amplify volatility in crises—hence, caution is needed. The corporate account debate is linked to the foreign account issue. Foreign accounts may even be simpler to manage. AML considerations apply equally to both. Foreign exchange issues, disclosures, accounting, and tax management systems must be incorporated. Swift action is necessary. Expanded futures listings on KRX may be required to support hedging. Investor protection measures such as strengthened suitability/explanation duties under the Financial Consumer Protection Act, or Hong Kong-style education/testing systems, should also be examined. For spot ETFs, minimizing NAV deviation between single-price domestic exchanges and multi-price foreign exchanges is essential. This requires pre-defining roles for asset managers, market makers, and authorized participants (APs), and determining whether cash or in-kind redemptions are to be adopted.