System Integration (SI) refers to the development of new information systems, or the integration and enhancement of existing systems, tailored to the business needs of companies and public institutions. Today, information systems serve as core infrastructure supporting essential business functions, including accounting, production, logistics, human resources, and customer management. For companies and public institutions, they are therefore critical assets that must be regularly maintained, upgraded, and improved. Just as aging buildings may require reconstruction, information systems often need to be rebuilt or enhanced due to technological changes and system obsolescence. In this process, conflicts of interest frequently arise between project owners and developers, and SI-related disputes have been increasing significantly. In particular, issues such as project delays, changes in requirements, additional development costs, delayed acceptance testing, defects, and failures in transition to operation often give rise to conflicting positions between project owners and developers, which can quickly escalate into large-scale disputes.
Recent SI disputes are no longer limited to simple claims for payment or interpretation of contractual language. They increasingly involve complex and highly technical issues, including the determination of project scope, the validity of change management procedures, the completeness of deliverables, satisfaction of acceptance criteria, liquidated damages for delay, defect repair obligations, data migration failures, and allocation of responsibility during the post-go-live stabilization phase. As cloud migration, AI implementation, information security, and personal data protection issues are also becoming intertwined with SI projects, comprehensive capabilities that combine technical understanding with contract and litigation expertise have become more important than ever. Moreover, SI disputes typically require court-appointed expert review by professionals specializing in SI projects. From the selection of appropriate experts for the relevant issues to the presentation of technical explanations to those experts, such disputes require the involvement of highly specialized legal professionals throughout the litigation process.
Lee & Ko’s SI Litigation Team provides optimal legal services for issues arising at every stage of SI projects, from bidding, contract negotiation and execution, project performance, acceptance testing, and delivery to post-delivery matters. Drawing on extensive experience representing both project owners and developers in SI disputes across a wide range of industries, including finance, healthcare, and apparel, our team is well positioned to address the multifaceted issues that arise in these projects. In particular, we conduct comprehensive analyses of project documents, including requests for proposals, proposals, requirement definition documents, deliverables, meeting minutes, and test results, to identify the core issues of a dispute promptly and accurately. We also provide coordinated and effective dispute resolution strategies for a broad spectrum of SI-related claims, including claims for progress payments, additional service fees, liquidated damages, defect liability, damages, and contract termination.
Lee & Ko’s SI Litigation Team currently represents developers in some of the largest SI disputes in Korea by contract value, including the next-generation integrated financial system project for Korea Post and a next-generation information system project for a major general hospital. Our team also represents project owners in disputes relating to information system procurement projects for certain public institutions. Based on this experience, we have a clear and balanced understanding of the positions taken by both project owners and developers on the key issues commonly arising in SI disputes. With this depth of experience and technical insight, Lee & Ko’s SI Litigation Team is confident in its ability to provide highly specialized and differentiated legal services in the SI dispute field.