Successfully securing not-guilty verdict on charges of conferring benefits to related party by Mirae Asset affiliates at the first instance level

Lee & Ko successfully defended Mirae Asset Global Investments and Mirae Asset Life Insurance in a criminal case where the two companies were indicted for alleged violations of the Monopoly Regulation and Fair Trade Act (the “Fair Trade Act”). The prosecution alleged that the companies unfairly allocated business to a golf course operated by an affiliate with a high shareholding by related parties, thereby conferring undue benefits. On January 16, 2025, the court of first instance rendered a full acquittal on all charges.

The central issue in this case was whether the Mirae Asset affiliates intended to confer, or were willing to tolerate the conferral of, undue benefits to the related party through their use of the affiliate-owned golf course.

Representing Mirae Asset Global Investments and Mirae Asset Life Insurance, Lee & Ko focused on persuading the court that, in criminal proceedings, the ambiguous concept of “undue benefit” under the Fair Trade Act requires a higher standard of proof and a more rigorous assessment to establish intent. Lee & Ko argued that the use of the golf course was a rational business strategy consistent with the group’s ownership and use of such facilities, and that there was no intent or willingness to confer undue benefits to the related party at the time of use. As a result, the court found the prosecution’s allegations to be unsubstantiated and rendered a full acquittal.

This case is particularly significant due to the limited number of precedents addressing criminal liability for providing benefits to related parties under the Fair Trade Act. By emphasizing the need for strict proof and careful judicial assessment of intent, especially given the Act’s often ambiguous terminology, Lee & Ko was able to clearly demonstrate the absence of criminal intent. Through a meticulous review of evidence and extensive witness examinations, Lee & Ko effectively established its client’s position. The case underscores Lee & Ko’s deep expertise and strong capabilities in the area of criminal fair trade law.