Recent Developments

Lee & Ko represented Yonsei University in a case concerning the 2025 Yonsei University natural sciences entrance exam (early admissions) conducted on 12 October 2024 and ultimately won the case for the client against 18 students (the movants) who filed the action, including an application for a preliminary injunction demanding a retest.   

In the first instance, the court dismissed the application for a preliminary injunction demanding a retest, but granted a preliminary injunction stating that “the subsequent procedures following the entrance exam shall be suspended until the first instance decision on the merits has been rendered.”

This decision which accepted the preliminary injunction in part, caused Yonsei University’s early admissions process to be suspended, and caused much uncertainty not only for the students who took Yonsei University’s entrance exam in question, but all students across the nation facing university admissions, leading to much disruption in the national university admissions process. 

Lee & Ko immediately appealed against the first instance decision and argued that “① the movants do not have the right to suspend the admissions process for other selection units they have not applied for, ② the movants have no legal grounds to demand a retest and the suspension of subsequent procedures without a retest provides no benefits to the movants, so that there is no interest in protecting their rights and the necessity for preservation cannot be recognized, and ③ in the case of a ‘preliminary injunction to determine temporary status,’ a high degree of prima facie establishment regarding the right to be preserved and the necessity for preservation is required. However, in the present case, the movants mainly submitted evidence that was written anonymously, which undermines its credibility. Even when considering other evidence, there is insufficient prima facie establishment to conclude that the fairness of the essay test has been significantly compromised to the extent that it could invalidate the entire test.”

The appellate court sided with Lee & Ko, overturned the preliminary injunction granted by the court of first instance, and dismissed the movants’ preliminary injunction application. 

This case highlights how Lee & Ko successfully prevented significant disruptions to the 2025 admission process of not only Yonsei University but universities across the country. Lee & Ko’s success stemmed from our meticulous analysis of legal principles and development of logical arguments on various complex issues, including the scope of a preliminary injunction in civil cases, the prima facie level of proof needed to preserve rights in a preliminary injunction case and whether such preservation is necessary, and the scope of autonomy that private universities have in the admission process. 

Lee & Ko is acting for LG Chem, Korea’s leading cathode materials manufacturer that succeeded in mass-producing NCM (nickel-cobalt-manganese) cathode materials for the first time in the world, in a lawsuit filed against Ronbay, another representative cathode material manufacturer in China, and Jae Se Energy, Ronbay’s Korean subsidiary.

NCM cathode materials containing nickel, cobalt and manganese as main components, especially the so-called “high-nickel” cathode materials with high nickel content, exhibit a high energy density and thus can be applied to electric vehicles requiring high capacity and high power. On the other hand, such high-nickel cathode materials require state-of-the-art technology for mass production and commercialization due to their low structural and thermal stability.

As far as NCM cathode materials are concerned, Ronbay enjoys the first place in China, and it was pursuing the export of cathode materials to the United States and Europe while gradually increasing the production of high-nickel cathode materials by using the Chungju plant of Jae Sae Energy as one of its main production bases. However, based on conducting comparative analysis of LG Chem’s diverse patent portfolio regarding cathode materials after obtaining samples of high-nickel cathode materials produced by Ronbay and Jae Sea Energy, it was confirmed that their products infringe at least five of LG Chem’s cathode material-related patents 

In response, Lee & Ko sought an injunction on patent infringement with the Seoul Central District Court on behalf of LG Chem. Simultaneously, Lee & Ko filed an application for preservation of evidence to secure evidence that could reveal patent infringement at an early stage. In the process, Lee & Ko successfully carried out procedures to secure evidence of patent infringement entirely under Ronbay’s control, including persuasively explaining the need to preserve evidence and obtaining the court’s evidence preservation order.
 
In addition, Lee & Ko filed an application with the Korea Trade Commission to investigate unfair trade practices in the import and supply of patent-infringing products by Ronbay and Jae Sae Energy, and the Korea Trade Commission has decided to launch an investigation into the matter, and the investigation is currently underway. Lee & Ko is conducting all-out patent infringement disputes representing LG Chem against Ronbay and Jae Sae Energy by actively defending claims of patent invalidity in response to the patent invalidation action filed by Ronbay.

In connection with the acquisition of Ecorbit by IMM consortium from Taeyoung Group and Kohlberg Kravis Roberts (KKR), Lee & Ko acted as counsel to the lead arrangers Kiwoom Securities, NH Investment & Securities and Nonghyup Bank. Lee & Ko also advised and the lenders comprising of 40 domestic financial institutions in the same transaction which consisted of two parts: (i) a KRW 1,337.2 billion acquisition finance loan to the special purpose vehicles established by the IMM consortium which acted as buyers, and (ii) a KRW 370 billion loan to Ecorbit to repay the existing borrowings. Ecorbit is the foremost waste disposal company in Korea. 

The transaction, which was part of the workout process of Taeyoung Group, was one of the largest domestic M&A transactions in 2024 and attracted a lot of attention in the market. Lee & Ko provided extensive advice to the lenders from the bidding stage to the closing of the transaction, including drafting the loan agreements, negotiations with the lenders, and review of the loan closing documents, which were structured in two tranches: the first tranche consisting of an acquisition loan to the buyers and the second tranche loan to the target company to repay the existing loans. 

As the buyer in this case was established as two special purpose companies, Lee & Ko carefully analyzed the joint borrower structure and reflected it in the contract to ensure that the rights of the lenders were protected by the collateral agreed between the parties so as not to be different from a single borrower loan. In particular, Lee & Ko played a leading role in the negotiations, reconciling the sharply opposing commercial requirements of the parties and proposing appropriate alternatives, taking into account the special characteristics of the waste treatment industry, and promptly responding to the ever-changing transaction structure caused by various factors to support the successful closing of the transaction totaling KRW 1.7 trillion. 

Lee & Ko advised on the issuance of USD 1 billion by the Ministry of Strategy and Finance of foreign exchange stabilization bonds (FESB) in the U.S. in July 2024 and AUD 450 million of FESB in the Australia in December 2024.

As the interest rate of FESB is used as a benchmark for domestic companies and financial institutions in offshore bond issuance, the issuance of FESB is very important in the capital market. In particular, the issuance of USD 1 billion FESB was significant in that achieved it received the lowest mark-up rate in history, and that the Korean government established the status of a regular bond issuer by issuing dollar-denominated bonds after three years. 

In addition, the AUD 4.5 billion FESB is the first FESB ever issued in Australian Dollars and is seen as a diversification of the Korean government's funding sources. The stable subscription and issuance of the bond, despite the declaration of martial law shortly after the pricing, is particularly significant. Lee & Ko’s experts contributed to the success of the transaction by providing accurate and prompt advice in a volatile market. 

In addition to this transaction, Lee & Ko has advised a number of other large-scale bond issuances in the second half of 2024 alone, including Shinhan Card's AUD 300 million offshore bond, Kookmin Bank's EUR 500 million covered bond, Korea National Oil Corporation's USD 1.2 billion offshore bond, and Korea Gas Corporation's USD 500 million offshore bond.

Lee & Ko provided legal advice for a transaction (the "Transaction") involving the sale of all shares issued by Koryo Nobel Explosives Co., Ltd. (the "Target Company"), held by KNE Holdings Co., Ltd., an SPC managed by Eum Private Equity Co., Ltd. as its general partner.

On November 8, 2024, KNE Holdings Co., Ltd. entered into a share purchase agreement with Kiwoom Private Equity Inc., under which all shares issued by the Target Company were sold to Kiwoom Private Equity Inc. for KRW 217.3 billion. Kiwoom Private Equity Inc. established a fund to consummate the Transaction.

Lee & Ko has been advising Eum Private Equity Co., Ltd., the seller, since its acquisition of the Target Company. For the Transaction, Lee & Ko provided comprehensive legal services for the seller, including reviewing the transaction structure, responding to the buyer's due diligence, and negotiating and executing the share purchase agreement, contributing to the successful closing of the Transaction.

The merger transaction (the “Transaction”) between Sapion Korea, Inc. and Rebellions Inc. (the “Merger Agreement”), with Sapion Korea, Inc. as the surviving entity and Rebellions Inc. as the dissolving entity, was executed on August 20, 2024, and was consummated on December 1, 2024, designated as the effective date of the merger.

Sapion Korea, Inc. and Rebellions Inc. are leading players in the domestic AI semiconductor market. This merger was undertaken to establish a representative AI company in Korea and   enhance competitiveness in the global AI semiconductor industry. Notably, the Transaction was structured as a merger between unaffiliated companies—a relatively uncommon occurrence—requiring careful pre-transaction alignment of the parties’ interests, as the two entities would be integrated into a single organization following the closing of the Transaction.

Acting on behalf of Sapion Korea, Lee & Ko provided comprehensive legal support throughout the Transaction, including the design of the transaction structure, timeline management, and compliance with disclosure requirements. In particular, Lee& Ko provided effective and systematic legal advice on various matters arising during the Transaction, including drafting the merger agreement, negotiating with stakeholders, and preparing the shareholders’ agreement. Through these efforts, Lee & Ko contributed to the efficient and successful completion of the Transaction within a short timeframe.

Lee & Ko represented Samsung Electronics in an appeal regarding the case in which the company’s executives and employees were indicted and found guilty in the court of first instance of occupational negligence resulting in injury or death. The case arose from an accident at Samsung Electronics’ Giheung facility, where a carbon dioxide leak during the replacement of fire-fighting equipment resulted in three casualties. Through meticulous legal analysis and a thorough examination of the evidence, Lee & Ko developed the optimal defense strategy and ultimately secured an acquittal for Samsung Electronics’ executives and employees. Lee & Ko is currently representing the client in the appeal before the Supreme Court. 

The accident occurred when an improperly cut active wire triggered the carbon dioxide fire extinguishing system to operate, causing the connected selector valve to detach because it failed to withstand the pressure of the carbon dioxide, ultimately resulting in carbon dioxide leaking to the outside. 

In the first instance, the court determined that the accident was caused by the construction company’s negligence in improperly cutting an active wire, as well as Samsung Electronics’ executives and employees who failed to adequately manage the selector valve that emits carbon dioxide. The court thus found Samsung Electronics’ executives and employees guilty of occupational negligence resulting in injury or death.

Samsung Electronics retained Lee & Ko as its new counsel for the appeal. Lee & Ko emphasized that the detachment of the selector valve was a manufacturing defect, and that there was no legal or factual basis for imposing an obligation on Samsung Electronics, which simply purchased and used the selector valve, to inspect its pressure resistance. At the same time, Lee & Ko meticulously analyzed and contended that the first instance decision erroneously conflated civil law principles of product liability with criminal legal principles of occupational negligence. The appellate court sided with Lee & Ko’s arguments, acquitting Samsung Electronics’ executives and employees and overturning the first instance decision. This case exemplifies Lee & Ko’s strong advocacy skills to present the most effective case strategy and solution for clients. 

The largest shareholder of JEIO Co., Ltd. (the “Target”), and ISU Petasys Co., Ltd. (the “Purchaser” or the “Acquirer”), entered into (i) a stock purchase agreement under which the Seller will sell to the Purchaser approximately 14.60% of the issued shares of the Target held by the Seller. Additionally, the Target and the Acquirer entered into (ii) a share subscription agreement pursuant to which the Target will issue to the Acquirer new shares representing approximately 13.86% of its issued shares, and (iii) a convertible bond subscription agreement under which the Target will issue to the Acquirer KRW 42 billion worth of ‘Series 2 Bearer Interest Unsecured Private Placement Convertible Bonds’, which can be converted into shares representing approximately 5.48% equity interest in the future. (The aforementioned percentages are calculated on the assumption that the new shares are issued and the convertible bonds are converted into shares.)

This transaction involves a structure whereby a listed company becomes the largest shareholder of another listed company. Simultaneous negotiations were conducted on multiple fronts, including the sale of existing shares, the issuance of new shares, and the issuance of convertible bonds. Due to the nature of a transaction between listed companies, intensive negotiations within a short period were required to maintain strict confidentiality, rendering the deal highly complex and challenging. Furthermore, this transaction was a landmark case where the largest shareholder was granted an exemption under the Korea Exchange (the “KRX”) rules to pursue an M&A transaction during the post-listing protection period, which is unprecedented in the past decade, and therefore, strategic planning and consultation with the KRX was critical.

Lee & Ko provided comprehensive and dedicated legal counsel throughout the entirety of this approximately KRW 300 billion transaction, including advising on the review of the transaction structure, drafting various agreements, negotiations, and facilitating their execution, thereby ensuring the successful execution of the series of agreements related to this transaction. Through such professional and effective counsel, the legal issues arising from the complex transaction structure and the unique characteristics of listed companies were successfully resolved, enabling the transaction agreements to be smoothly executed.

Lee & Ko successfully represented Company A, a food waste treatment company, in a lawsuit seeking to revoke excess effluent charges of approximately KRW 276.6 billion (approx. USD 200 million), securing a favorable ruling for the client.

Investigative authorities alleged that Company A, which had obtained a waste treatment business license and operated discharge facilities, illegally discharged wastewater by installing a bypass pipe in the food waste treatment process, allowing wastewater to flow out without passing through the final discharge point. Consequently, both Company A and its executives were indicted. Subsequently, relying entirely on the investigation's findings, the administrative authority imposed an unprecedented KRW 276.6 billion in excess effluent charges, alleging that Company A discharged water pollutants exceeding the permissible concentration limits. Meanwhile, Company A and its executives had already been convicted in the first instance of the related criminal case, which is currently under appeal.

Under the Water Environment Conservation Act, the amount of excess effluent charges is calculated based on the concentration level exceeding permissible limits, the volume of discharge, and the operational days. Lee & Ko meticulously analyzed the grounds for the administrative authority’s calculation of the charges and successfully argued and proved the following:
    1. The excess pollutant concentration level should have been calculated based on wastewater discharged after being combined with wastewater treated through the facility, not based on samples collected from the bypass pipe. The administrative authority’s reliance on samples from the bypass pipe was therefore unlawful.
    2. The volume of discharge used in the calculation was based on unreliable data, leading to errors.

This case is a landmark victory, overturning the largest charges ever imposed in Korea, showcasing the expertise and seasoned experience of Lee & Ko’s Environmental Group. Furthermore, the case serves as a powerful reminder that companies failing to prioritize environmental responsibility risk facing astronomical penalties. At the same time, it underscores the importance of regulatory sanctions to be imposed strictly in accordance with clear legal standards and procedures.