Case Studies
Responding to regulatory violations due to failure to report overseas direct investment.
Law firm Veat received a request from a client with a subsidiary overseas and acted as an agent for the entire violation reporting regarding the overseas direct investment report that was omitted during the past paid-in capital increase process. The client belatedly realized that due to an employee's mistake, they had failed to fulfill the overseas direct investment pre-report for some of the multiple paid-in capital increases, and the situation was raising concerns about sanctions under the Foreign Exchange Transactions Act. According to the Foreign Exchange Transactions Act, when transferring funds to an overseas subsidiary in the form of a capital increase, a pre-report is, in principle, required, and failure to do so can result in fines, penalties, and even restrictions on foreign currency transfers or acquisition of overseas stocks. Accordingly, Law firm Veat meticulously sorted out the company’s past transaction history, analyzed the circumstances and legal nature of the previously unreported transactions, and submitted data that could substantiate the details, leading to a swift and efficient approval of the violation report. As a result, the client was able to resolve the unreported transactions and return to a state of being able to trade normally with the overseas subsidiary again. Law firm Veat supports one-stop services from reviewing the overview of complex foreign exchange transactions through the Overseas Investment Reporting Center to providing and submitting relevant data. Those who are interested in more details regarding this case study are welcome to refer to the official blog. ▶Go to Law firm Veat Overseas Investment Reporting Center (FX CENTER) Thank you.
‘Best if Used By’ Expiration Date Labeling Mandate Related Column
Law firm Veat’s Juhyeong Lee, Head of Food Regulatory Consulting Team, contributed a column to the Food & Beverage News on the topic of Practical Strategies to Respond to California’s New Date Labeling System. California is scheduled to mandate the use of only “Best if Used By” or “Use By” expressions on food packaging from 2026. Expressions widely used previously, such as “Best Before” or “Expiration Date,” will be prohibited, and violations may result in fines, prohibition of product sales, and other strong sanctions. When Korean food companies export products to the US market, they need to redesign the entire labeling system, not just make simple wording changes. Especially for kimchi, ramen, processed meats, and dairy products, quality and safety must be communicated in a way that consumers can easily understand, and a response that considers not only legal regulations but also consumer perceptions is necessary. This regulatory change can be both a new risk and an opportunity. It is a critical time for comprehensive responses, including setting expiration dates based on scientific evidence, adopting display methods suitable for online distribution channels, and considering additional regulations such as Proposition 65. Law firm Veat provides legal advice specializing in the domestic and international food industries and performs customized consulting to enable companies to proactively respond to changes in the global regulatory environment. California’s Mandate of ‘Best if Used By’: Compliance Strategies to Transcend Federal Recommendations - Juhyeong Lee’s Global Food Trends (5) - Food & Beverage News Thank you. Law firm Veat
Branch establishment registration procedure consultation and execution
Law firm Veat recently received a request from a software development startup (hereinafter referred to as “client”) to advise on commercial registration procedures related to branch installation and to perform related registration work. Since the client started operating independently at a location other than the headquarters, it was necessary to be regarded as a “branch” under the Commercial Code and to proceed with branch installation registration (Commercial Code Article 181). Law firm Veat informed the client that registration application was required within 2 weeks from the installation date and subsequently provided comprehensive support from securing decision-making documents to drafting and submitting registration documents, and also checked the practical requirements for completing registration within the deadline. Law firm Veat provides commercial registration services such as branch installation, company establishment, headquarters relocation, and paid-in capital increase, in addition to branch installation. For those who are interested in more detailed information regarding this case study, please check the following blog. - Requirements for Branch Installation Registration That Must Be Checked When Operating a Business Location Other Than the Headquarters Thank you. Law firm Veat
Legal review regarding the possibility of setting a lien on future receivables.
Law firm Veat recently received a request from a SaaS solutions company (hereinafter referred to as the “Client”) to review the possibility of setting a pledge on future receivables. The Civil Code does not have explicit legal provisions on this matter, but it specifies that unless otherwise provided by law, the setting of a pledge on a right shall be in accordance with the method for transferring that right (Civil Code Article 346), and the Supreme Court has ruled that in principle, future receivables can be transferred under certain conditions (see Supreme Court ruling of April 8, 2010, 2009da96069). Law firm Veat reviewed the Client’s possibility of setting a pledge on future receivables based on relevant regulations, the Supreme Court’s precedent, and similar cases. Law firm Veat provides optimized legal advice on legal issues arising in the Client’s business operations and aims to provide one-stop legal services to help the Client proactively identify and comprehensively respond to legal risks. Those who are interested in more detailed information related to this case study can check it on the blog below. - [Lien] Is it possible to set a pledge on future receivables? Thank you. Law firm Veat
Secondary Derivative Works Copyright Column Contribution
As the creation of new works based on originals becomes commonplace in the content industry, copyright issues related to ‘derivative works’ are receiving increasing attention. Law firm Veat TIP (Technology Intellectual Property) team has contributed a column on derivative work creation rights to the startup media platform Platum in line with this trend. This column details the legal requirements that must be met for actions to be recognized as creative acts rather than simple ‘imitation’, the criteria for distinguishing between reference and infringement when plagiarism allegations arise, and copyright protection strategies that should be considered in the actual creation process, all from a practical perspective. In particular, with the current proliferation of diverse forms of derivative creative activities, such as generative AI, remixes, parodies, and fan content, this column specifically explains when such content may be eligible for legal protection and under what circumstances it may be considered infringement. You can find more details at [this link]. The TIP team is led by attorney Oh Seung-jong (former Chairman of the Korean Copyright Committee), who has extensive experience in the copyright field, and provides support for various copyright practices surrounding content production and distribution. In particular, the team has provided numerous consultations on copyright contract structure design, infringement determination, and rights assignment review for companies such as game developers, education platforms, and content production companies. If you need assistance with legal interpretation related to derivative works, utilizing generative AI-based content, or legal issues in the process of creating parodies or fan content, please feel free to contact Law firm Veat TIP team. Thank you. Law firm Veat
Review of service contract for performing service for system development and construction.
Law firm Veat reviewed the service contract from the perspective of the client, who is the developer entrusted with the system development and construction service. As system development and construction projects become more active, the legal importance of the service contracts concluded by the developer is also increasing. However, some contracts are written from the client's perspective and may impose excessive obligations or restrictions on rights on the developer, so caution is needed. Law firm Veat in this case meticulously reviewed key clauses such as the scope of ownership of deliverables and intellectual property rights, delay penalties in the event of project schedule delays, timing and method of development payment, and liability for damages, identifying unfavorable terms for the client and providing detailed analysis of the legal risks and precautions for each item. Furthermore, we presented specific amendment proposals to improve the actual contractual conditions, supporting the client to perform system development and construction tasks under stable and fair conditions. Law firm Veat provides specialized legal advice on system development and construction contracts based on a high understanding of the IT and software industry as a whole. Based on practical experience accumulated in various technology-based projects, we are designing strategic contract structures to ensure that the developer's technological assets and business capabilities are fully protected in the contract. Those who are interested in more detailed information about this case study can check it on the blog below. What to Check from the Developer's Perspective for System Development and .. : Naver Blog Thank you. Law firm Veat
[IT Column] Copyright Risks of Generative AI Content and Corporate Response Strategies
Recently, generative artificial intelligence (Generative AI) technology has been rapidly spreading, and copyright issues related to content creation have become the center of new legal discussions. As AI now performs some of the creative activities that were previously performed only by humans, legal confusion regarding the definition of copyrighted works and ownership of rights is increasing. The current copyright law defines a "copyrighted work" as "an expression of human creativity," so content independently generated solely by AI is difficult to recognize as a copyrighted work legally. Therefore, for AI content to receive copyright protection, human creative input is essential. It’s not enough to simply instruct AI; creative composition, editing, and arrangement of the results, along with active and creative human intervention, are essential. Furthermore, the terms of service for generative AI platforms vary, and companies must be sure to check them. Some platforms assign a portion of the rights to the generated content to the platform itself, or place restrictions on commercial use, so caution is needed. Therefore, it is important for companies to carefully review AI platform terms of service and clearly reflect them in internal policies. The risk of copyright infringement related to AI training data cannot be overlooked either. When companies train AI themselves, it is safest to use only public data or data with clear copyright; the use of uncertain data may result in legal risks. To effectively utilize generative AI while minimizing legal risks, accurate understanding and response strategies for these copyright issues are essential.
PG Payment Service Terms of Use Integration and Prepaid Electronic Payment Method Legal Advisory Cases
Law firm Veat provided legal advice to a creator IT company regarding the process of reflecting and integrating payment services through a payment processing service (PG) into its platform's terms of service. This advice focused primarily on reflecting relevant legal requirements and essential consumer protection guidelines into the terms of service, based on whether the client's transaction structure could be considered a prepaid electronic payment method, and integrating terms of service for increasingly diverse payment services. Law firm Veat thoroughly reviewed whether the client's loyalty points system could be considered a prepaid electronic payment method. Additionally, it advised that telemarketers are obligated to inform consumers of the name, type, and content of goods, the method and timing of supply (Article 13(2) (2), (2)2, and (4) of the Act on Consumer Protection in Electronic Commerce), and that when operating loyalty points (points, mileage, etc., regardless of the term) in cyber malls, conditions of use, period of use, expiration conditions, and compensation standards in case of failure to use due to the business operator’s fault must be posted in an easy-to-understand manner for consumers, and also provided clear and specific guidance methods consistent with relevant regulations for the validity period and usage period of such loyalty points, to support preventing consumer confusion and subsequent legal disputes. If terms are managed individually, there is a possibility of conflicts or inconsistencies. To minimize such problems, we recommend integrating the terms of service. Law firm Veat analyzes the client’s business structure and service content in detail to provide integrated terms of service that prevent legal risks and increase clarity. To this end, Law firm Veat operates a systematic Legal Tune service, from business model analysis to customized form creation. If you need assistance with drafting terms of service or legal advice, please feel free to contact Law firm Veat. Those interested in more details about this case can refer to Law firm Veat’s official blog. Thank you. From Law firm Veat
Healthcare medical device product related goods sales contract drafting consultation
Law firm Veat received a request from Company A (hereinafter referred to as the "client"), a company developing and distributing products in the healthcare sector, and drafted a product sales contract for distribution with other companies. In this advisory service, we comprehensively reviewed matters such as intellectual property rights ownership and scope of use, response method in case of product defects, contract termination and damages conditions, in accordance with the characteristics of healthcare products combined with advanced technology. In particular, we established specific criteria to enable proactive responses regarding inspection and delivery conditions, payment methods, etc., which are likely to cause practical disputes during contract performance. Also, we included a non-disclosure agreement (NDA) clause to prevent the client's technology information and transaction conditions from being leaked externally and established legal safeguards to maintain information protection even after contract termination. Law firm Veat provides practical contract documents tailored to the characteristics of the bio and healthcare industries, supporting technology-based companies to effectively control legal risks. Those who are interested in more details about this case study can check it on the following blog. - 6 Risk Prevention Clauses to Check Before Concluding a Product Sales Contract Thank you. Veat Law Firm
[Law Newspaper] IT Experts Unite ··· "Confident in Technology Disputes" _Law firm Veat Special Feature Article
A special feature article was published in the Law Times newspaper, featuring an interview with Choi Sung-ho and Song Do-young, managing partners of Law firm Veat. As a technology-focused boutique law firm founded by lawyers specializing in information technology (IT), the article highlights Law firm Veat’s strengths in the technology sector, celebrating its 10th anniversary in 2025. It focuses on the firm’s remarkable achievements in various areas, including regulatory sandbox consultations, legislative advisory services, personal information protection, investment & M&A, and more. The article excerpt below; for the full article, please refer to the link. Expanding M&A Area Beyond the Technology Industry Actively Participating in Legislative & Regulatory Design Processes Easily Explaining Complex Technology Data to the Court Veat's greatest strength lies in the expertise of lawyers who understand both legal and IT industry terminology. Choi Sung-ho (45, 42nd Judicial Research & Training Institute), managing partner and a graduate of Seoul National University's Computer Science Department, stated, “As an IT specialist, I can efficiently narrow down the key issues and reach results quickly in cases where complex technology is at the core.” He added, “In a cloud usage cost refund lawsuit representing a domestic IT company, we explained the network configuration and cloud infrastructure usage history – complex technical data – with a simplified presentation that the court easily understood, resulting in a complete victory.” Currently, Law firm Veat comprises 17 Korean lawyers, 1 foreign lawyer, 1 consulting certified public accountant, and 4 advisors & specialist committee members. They hold a ‘VEAT Academy’ bi-weekly to share major precedents, legislative trends, and technology trends, enhancing their expertise. Song Do-young (45, 39th), managing partner, said, “Lawyers are both legal professionals and interpreters,” adding, “We strive not to miss domain knowledge by sharing terminology and knowledge gained through our individual work and seminars.” Beyond Simple Consultation: Designing Policy Law firm Veat is deeply interested in promoting the technology industry and approaches the regulatory sandbox not just as legal consultation but from the perspective of ‘policy design’ and ‘market entry design.’ Song said, “We strive to have as many companies as possible benefit and enter the market, and we have worked together from coordinating with government ministries to formalizing systems.” He added, “Successful businesses supported by Law firm Veat’s regulatory sandbox consultations, such as mobile ID verification services, mobile electronic notice services, and taxi app meters, are actively used in everyday life, which is very rewarding.” He noted, “Data-driven legislation is only possible if the sandbox regulations demonstrate the actual demand and problems of technology through a process of empirical validation.” Law firm Veat also actively participates in the government's legislative and regulatory design processes. Song said, “We participated in the drafting process of the Virtual Convergence Industry Promotion Act in August 2024,” adding, “Recently, we have also participated in the drafting committee for the Artificial Intelligence Basic Act’s subsidiary laws.” He stated, “Law firm Veat has a deep understanding of the perspectives and operational methods of regulatory and public institutions,” adding, "Private companies can proactively diagnose regulatory risks when launching new services and effectively negotiate with administrative agencies."