News

[Counsel] Review of the beneficiary right certificate of real estate development trust for officetels and residence hotels and the ABL investment structure

2019-10-02 | Latest Work

VEAT Law Firm has performed services for the review of law and risk analysis related to investment in priority beneficiary interests in real estate based on a request by Investor A. VEAT Law Firm provided its opinions by reviewing the investment structure through a thorough analysis of the rank of the priority beneficiary orders, the rank of other priority beneficiaries, investment amount by other priority beneficiaries, and the maximum credit amount that Investor A considered to make a decision. VEAT Law Firm provided its opinions based on the independent review by its investment consulting team of the original register of real assets trust, contracts concluded between the contractor and the trust company (ex.: construction service contract, contract of investment management trust, loan agreement, and contract for lot sale), investment structure, etc. rather than information provided by other agencies. It is rather difficult to make an investment while trusting the information provided by a trust or fund management company, as various relations are interlinked in a complex fashion in the structure of beneficial interests in real estate trust or ABL investment. VEAT Law Firm provides legal counseling by considering the areas where legal disputes may arise in the future as well as the Civil Act and the Trustee Act based on its rich consulting experience in Real Estate Structured Finance. For any questions concerning real estate trust beneficiary interests and ABL investment structure, please contact VEAT Law Firm at your convenience.

[NEWS] Eunbyeol Cho, Partner Attorney, appointed as counsel lawyer of the Personal Information Protection Committee

2019-10-02 | Press Release

Eunbyeol Cho, Partner Attorney of VEAT Law Firm, has been appointed as counsel lawyer of Personal Information Protection Committee on 28 February 2019. Partner Attorney Eunbyeol Cho has provided consulting for numerous cases related to personal information while serving as a member of the Personal Information Consulting Team of VEAT Law Firm. She continues to provide legal counseling on personal information, as she has conducted numerous legal consulting cases related to EU GDPR. For any questions on personal information law, please contact VEAT Law Firm at your convenience.

[NEWS] Attorney Ilun Ahn says, "The newly emerging precedent on blockchain is expected to provide regulatory effects"

2019-10-02 | Press Release

IT & Venture Capital specializing VEAT Law Firm attorney ... "The weight of reliable projects grows" [PaxNet News - reporter Byeong-yun Kim] "Some negative legal issues were recently reported in connection with Coin Exchange. There will be affirmative effects in the long run, although they will inevitably have adverse effects across the entire industry in the short term. I expect that the blockchain regulation will become more specific as legal cases are treated one after another." In an interview with PaxNet News, Attorney li-un Ahn Ahn of VEAT Law Firm expressed his opinions on legal issues and his forecast of future regulations related to blockchain. ... For further content of the PaxNet News story, please read <Attorney Ilun Ahnsays, "The newly emerging precedent on the blockchain is expected to provide regulatory effects">.

[Column] What should be done to take action to leakage of personal information?

2019-10-02 | Latest Work

The Supreme Court has attracted keen attention regarding its final decisions on two lawsuits claiming damages related to leakage of personal information (2017Da207994, 2017Da256910) in December of 2018, saying that KT is not responsible for damages (hereafter "these decisions"). In these decisions, a Mr. Choi illegally acquired and leaked over 10 million cases of personal information of KT customers for five months by developing a hacking program in April 2012. In connection with this case, many victims of the personal information leakage (the claimants) filed a claim for damages against KT (the defendant), but the Supreme Court closed the case by turning down the claims from the claimants. In this case, the Supreme Court inclusively examined whether KT had taken all possible protective measures reasonably expected of an ICT service provider based on common sense as of 2012 when this case took place. In particular, it determined whether KT faithfully took technical and administrative protective measures as provided under the statutes related to personal information. The statutes before the amendment were applied to this decision, as this case of personal information leakage took place in 2012. The Korean statutes concerning the protection of personal information were amended extensively in and after 2012, newly inserting certain stringent punitive provisions on statutory damages, the recommendation of disciplinary punishment of the representatives, etc. Thus, businesses can no longer neglect their control of personal information following this decision. Instead, a penalty of up to 3 million KRW per case may now be imposed for compensation of damages caused by leakage of personal information due to the amendment to the Personal Information Protection Act. Thus, the necessity has been further reinforced for the businesses to faithfully take measures to secure the safety of personal information and to perform the standards for the technical and administrative protective actions as required under the amended statutes. VEAT Law Firm strives to provide the best services concerning personal information by deploying a personal information team consisting of lawyers responsible for cases related to legal counsel and consulting on the protection of personal information and crisis management. The personal information team of VEAT Law Firm, consisting of lawyers who majored in IT and other engineering subjects, has enjoyed a high reputation among clients as they have a high degree understanding of the IT systems that are employed to protect personal information, including precedents or authoritative interpretations of statutes related to the protection of personal information. Those requiring legal counsel and consulting in connection with their actions to incidents involving leakage of personal information or deployment of a system for the protection of personal information are invited to contact VEAT Law Firm at their convenience.

[NEWS] Sungho Choi of VEAT Law Firm selected as an excellent lawyer by the Korean Bar Association

2019-10-02 | Press Release

Managing Partner Sungho Choi Choi of VEAT Law Firm selected as an excellent lawyer by the Korean Bar Association; attended ceremony held on the 18th. Managing Partner Sungho Choi Choi was awarded a commendation as the Association highly evaluated his active participation in various activities of the Association is aiming to build a society desirable for starting a new hi-tech venture as well as providing legal counsel to many startup businesses. VEAT Law Firm promises to continue to provide effective legal counseling as partners for startups.

[Column] The Game Content Rating Board has partially amended provisions on the classification of games.

2019-10-02 | Latest Work

The Game Content Rating Board published its partly amended ‘game classification regulations' on January 2, 2019. What is noted particularly among the amended provisions in the article that a game may be classified as harmful to young people when the game describes speculative acts to the degree that induces a speculative mind to affect younger users adversely. According to the ‘given standards for description of speculative acts' under the proposed amendment of Article 12 of the Game Software Rating Regulations, the relevant games may be classified as harmful to younger users when they include game systems where items can be traded between users using paid goods as well as when their main content realistically depicts speculative acts. VEAT Law Firm provides legal counseling to many game companies on whether controversial games may be held before they apply for their classification to the Game Content Rating Board. Those in need of legal counseling on the rating of games are invited to contact VEAT via the following route.

[Column] Financial Supervisory Commission partly amends its P2P lending guidelines - what should be noted by financial companies?

2019-10-02 | Latest Work

The legal protection of investors in P2P lending is expected to be enhanced in view of the Proposed Extension and Partial Amendment of P2P Lending Guidelines published by the Financial Supervisory Commission on January 1, 2019. The Financial Supervisory Commission had already published the relevant guidelines around February 2017 in order to ensure the safety of the financial market while protecting both the investors and borrowers, considering various problems and disputes arise while the P2P lending market is growing rapidly, increasing the number of investors. However, as the P2P lending guidelines have no legal binding force, more and more P2P lending investors have suffered damages. The National Assembly has started a discussion to enact five different statutes in this connection. In addition, as the fintech market has also grown in size, the Financial Supervisory Commission prepared a partial amendment to the P2P lending guidelines in early 2019 but announced a grace period until December 31, 2019. It is thus necessary for the P2P lending-related financial service providers to study the provisions of the guidelines concerning P2P lending and fintech. In particular, when a platform related to P2P discontinues its service as it is liquidated or closed, as the Financial Supervisory Commission emphasized, the investors should prepare procedures for entrusting the liquidation processes to a law firm or other outside agencies in advance in order to prevent damages. As these guidelines are published by the Financial Supervisory Commission to maintain market discipline before a law is enacted, they are not yet mandatory, but it is desirable to be prepared preemptively as they are closely related to the laws to be enacted. VEAT Law Firm has rich experience in providing legal counseling to various P2P lenders such as Tera Funding and Lendit. Those needing to review the legitimacy of their service based on the P2P lending guidelines are invited to contact VEAT Law Firm at their convenience.

[Counsel] Representation in the declaration of securities acquired by foreigners

2019-10-02 | Latest Work

Association G, running a venture capital business in Japan, recently invested in equity shares of a mid-sized company in Korea. VEAT Law Firm successfully declared financial instruments acquired by a venture capital company in Japan for equity investment in said local company. The acquisition value of the Redeemable Convertible Preference Shares to be acquired in cash by the Japanese venture capital company was approximately 2.5 billion KRW as of the day declared. The foreign investment counseling team of VEAT Law Firm submitted the declaration form pursuant to Article 18 of the Foreign Exchange Act by thoroughly examining the class, quantity, and unit price of the equity shares that the Japanese venture capital company planned to acquire. The above securities acquisition declaration form is for your reference only, as it is a photo image made by VEAT Law Firm by editing the details of the actual declaration. Foreigner nationals are required to declare their acquisition of financial instruments or securities from a local company pursuant to the Foreign Exchange Act. It is safe and efficient to receive help from legal experts, as the necessary documents and declaration procedures vary depending on the relevant statutes and regulations. According to a press release by the Financial Supervisory Commission on December 21, 2018, it published a strong determination to impose stringent administrative sanctions on violations of the statutes related to foreign exchange by operating a dedicated team organized for investigation of foreign exchange offenses. (Source: http://www.fss.or.kr) This information should be noted for your reference, as it applies to both investments of funds overseas or when funds are invested by foreigners. VEAT Law Firm provides carefully prepared legal counsel for the growth of its clients based on expertise accumulated through extensive experience in consulting and the declaration of many foreign nationals' investment cases. Those in need of legal counseling on their equity investment are invited to contact us using the following route.

[Column] What about government policies as the blockchain technologies come closer to consumers with the launch of the Kakao Ground X Service?

2019-10-02 | Press Release

Several newspaper companies have been talking about how the ‘Content Protocol' of the video streaming platform Watcha is joining the Ground X Klayton Platform as a partner. It is reported that the consumers can easily access the Klayton Platform being introduced by Ground X, a blockchain subsidiary of Kakao, Korea's largest mobile platform, as they subscribe to the new platform with their existing Kakao ID, and may also control it using the wallet in their own Kakao account. Two main developments are hinted, brought about in the blockchain market by Klayton platform being launched by Ground X, a blockchain subsidiary of Kakao, in 2019: It has been reported that the blockchain technologies will be selected as media that the general public may access easily, as the other partners who joined the Klayton platform include developers or providers of games, video media, and travel services. The technological combination with blockchain technologies in diverse fields will provide a foundation for the online and offline service users to use further developed services. First, the point where the Watcha contents protocol, with a large number of users, is joining Klayton means that the blockchain technologies will become even more popular or easier to access by the general public. Watcha has attracted attention from many as it is a platform with approximately 4 million users, and the users will receive reward tokens by routine participation in the service by leaving their rating comments about movies or recommend movies to others on the Watcha platform. Second, the current opening of the Klayton platform will be a good opportunity for startups who are exploring blockchain-related service businesses. At the same time, there still remains a crux that no one knows what regulatory actions the Korean government will take toward the blockchain-based services, as the law has not yet been fully established for regulation over blockchain technologies. In a press conference, the blockchain task-force team of the Korean Bar Association disclosed a statement urging the government to prepare statutes and policies on blockchain technologies and services in order to develop a desirable market. Examining various legal regulations in advance is rather important for startups that desire to provide platforms and services based on blockchain technologies. They are urged to examine the Capital Market Act, the Personal Information Protection Act, and the e-Commerce Act from diverse viewpoints, as the government has not yet promulgated statutes and policies for the regulation of such technologies or services. VEAT Law Firm contributes to the development of policies and statutes related to blockchain in various modes through various activities, including participation in the blockchain task-force team of the Korean Bar Association. It also provides inclusive legal counseling on blockchain industries based on its rich experience in legal counseling on blockchain and virtual currencies. It will continue to provide the startups and other businesses that desire to develop technologies and services based on blockchain with inclusive expert counseling on the entire blockchain industry so that they may carry on business activities in a stable manner even amidst conditions where statutes and regulations are not transparent. Those in need of legal counseling from VEAT Law Firm are invited to contact us via the following route.

[Counsel] Legal counsel on registration of General Partner (GP) newly elected for management participation-format PEF

2019-10-02 | Latest Work

VEAT Law Firm recently assisted with the registration of Company D in running a Discretionary Investment Service business as General Partner (hereafter "GP") of a PEF oriented to management participation under the Act on Capital Market and Financial Investment Service (hereafter "PEF") as requested by Company D, and was notified by the Financial Supervisory Commission on December 21, 2018 that Company D had been duly registered as the GP of the PEF. VEAT Law Firm provided legal counseling for rapid and accurate GP registration based on Article 249-15 of the Act on Capital Market and Financial Investment Service and regulations concerning the financial investment service after being entrusted by Company D. This case was peculiar or different from the registration of an ordinary full-time GP, as a company already running a discretionary investment service business was to be registered. In particular, the lawyers examined the case in preparation against the possibility that issues related to internal control would arise with the fund's conflict of interest safeguard system. In addition, the registration process progressed smoothly as VEAT Law Firm attorneys quickly presented advisory opinions concerning the issues related to the Capital Market Act, for which Company D was requested by the Financial Supervisory Commission to supplement the application documents. Those in need of legal counseling for PEF, GP registration are invited to contact us at their convenience.