Case Studies
[Consulting] Possibility of violation of the Gift Prohibition Act due to consulting fees provided by a professor
Venture company A is continuing efforts to grow the company through research and development using AI. In this process, they wanted to receive advice on data mining from Professor B of a domestic university. However, because Professor B is employed by a school foundation rather than a private university, the so-called Kim Young-ran Act, or the Act on the Prohibition of Improper Solicitation and Gifts (hereinafter referred to as the ‘Prohibition of Solicitation Act’), applied, which became a problem. Accordingly, A felt the need to review related legal issues and sought out Law firm Veat. The Prohibition of Solicitation Act applies not only to public officials but also to employees working in public organizations and public institutions, so caution is required. Even when a company pays a justified amount for consultation or lectures from external parties, the Prohibition of Solicitation Act limits the upper limit and procedures for the payment, making it an area that requires expert review. Law firm Veat reviewed various items, including whether the Prohibition of Solicitation Act applies to Professor B, the amount A can pay, the procedures to be observed at the time of payment, and the forms in which payment is possible, and through this, we were able to assist A in its business operations. Thank you. Law firm Veat
[Litigation] Defendant case violating the Act on Punishment of Violence
Law firm Veat obtained a decision not to indict in cases where defendants were indicted for violation of the Act on Punishment of Violence (coercion, joint injury, joint intimidation, joint refusal to leave). The wife of the complainant and the defendants are siblings, and the complainant's wife was filing a lawsuit claiming ownership transfer registration cancellation based on inheritance property division regarding the deceased father's land inheritance against herself and the defendants’ mother. The defendants only belatedly learned that the complainant and the complainant's wife had secretly recorded them and submitted the recordings as evidence in the aforementioned civil lawsuit after receiving a civil complaint where the complainant's wife had secretly recorded them without the defendants’ consent. The defendants visited the complainant's home to protest this, and in the process, they were criminally prosecuted. Veat actively argued that the complainant retaliated and criminally prosecuted the defendants, and that the defendants filed a ‘false’ complaint to disadvantage the defendants who suddenly drafted statements favorable to their mother and detrimental to themselves as the possibility of losing the aforementioned civil lawsuit increased. Thank you.
[Consultation] Advice regarding amendment of the process for personal information collection, use, and consent to third-party provision
Law firm Veat checked the processes regarding the collection, use, and third-party provision and entrusted provision, together with D, which is responsible for operating the financial section of the D portal company. Law firm Veat identified vulnerabilities and necessary improvements from a personal information protection perspective, and then presented advisory opinions to the client regarding the reasons for improvement and specific alternatives.
[Consultation] Consultation regarding shareholder disputes surrounding the departure of a co-founder
The co-founder B of a well-known e-commerce startup, A Company, had worked diligently for several years to grow the company. As A Company got onto a certain trajectory, B wanted to leave A Company to start a new business. However, when B expressed his intention to leave, the representative director C of A Company presented a shareholder agreement that had been concluded several years ago. According to that agreement, B was obligated not to dispose of his shares externally when leaving. Accordingly, B inquired with Law firm Veat about whether there was a way to leave without forcibly selling his shares. Law firm Veat reviewed all of the other shareholder agreements B had concluded and the investment agreements regarding A Company, and it was discovered that B had a co-sale right (Tag-Along) on the shares of other shareholders. Also, this could soon become a major obstacle in A Company’s investor exit process, so it was ascertained that negotiations were possible regarding the content of the shareholder agreement B had concluded with C. B was able to make a rational decision about his future based on Law firm Veat’s advice, and eventually left to start the new business he desired. Thank you. Law firm Veat
[Advice]Providing personal information protection advice related to I Pharmaceutical's online mall construction
Veat provided consultation on terms of service writing and personal information protection in connection with the launch of an internet shopping mall by a well-known domestic pharmaceutical company. Veat did not simply build an e-commerce platform, but rather, drafted terms and conditions to govern the legal relationships between the pharmaceutical company, pharmacies, and users, reflecting the characteristics of the pharmaceutical industry, prepared various documents for easy payment agreement, and provided comprehensive consultation on personal information protection, including the personal information processing policy.
[Consultation] Providing consultation regarding the legality of games using points, such as roulette, and the statute of limitations on points.
Veat provided consultation regarding whether the method of customers providing points to users and users betting those points or playing games like roulette or lottery, regardless of the points, constitutes a criminal offense such as inducement to gambling. Furthermore, Law firm Veat provided consultation regarding whether points already provided to users expire due to the statute of limitations, based on relevant academic theories, verdicts of similar cases, and decisions of the Fair Trade Commission.
[Consulting] Providing advice on establishing operating regulations for the board of directors, audit committee, and shareholder meetings, and on amendments to the articles of incorporation.
Veat provided consultation regarding the A Company’s board of directors, audit committee, and shareholder meeting operating regulations for establishment and revision. Veat provided draft establishment and revision documents, considering matters that may arise when operating the (audit) committee and shareholder meeting, based on recently revised laws and recent court precedents. Furthermore, Veat reviewed the revision draft of the business purpose in the A Company’s articles of association, referencing practical examples of similar industries and classification contents in the Korean Standard Industrial Classification. For this purpose, Veat inspected not only the work currently carried out by A Company but also future businesses that have been identified through consultations. Thank you. Law firm Veat
[Consultation]The legality of content provision using RSS functions
Law firm Veat provided consultation regarding whether the form of providing news and other content via the RSS function on smartphone lock screens infringes copyright law. It provided consultation regarding whether the method of displaying news and blog content, etc., via the RSS function on users’ Android smartphones’ lock screens, or the method of a company securing an RSS list in advance to allow users to easily select it, infringes copyright law.
[Advisory] Review of English Joint Venture Standard Contract
Two parties simultaneously investing to establish a new company, a joint investment, requires determining the investment ratio of each investor, the extent and possibility of exercising rights regarding the newly established corporation. Veat reviewed an English joint investment standard contract utilized by A public institution. The contract, having been drafted some time ago, included portions that conflicted with current laws and customs. Considering that this joint investment contract would be used as a standard for A institution’s future joint investments, Veat drafted it to allow for flexible adjustment of the form and ratio of the joint investment, and the rights of the investors, with only slight modifications. Thank you. Law firm Veat
[Consultation] Providing consultation regarding the preparation of personal information collection, use consent forms and processing policies.
Law firm Veat received a request from A, a company operating a single enterprise and providing various services, and provided legal advice on personal information collection, use consent forms and personal information processing policies. A provides various services such as G, N, D, etc. In the case of G service, a personal information collection and use consent form must be obtained, but other services such as N and D do not collect or use personal information. Accordingly, Veat’s personal information team explored ways to provide legal advice on the most appropriate personal information processing method for A’s case, and provided the following legal advice. Law firm Veat explained the advantages and disadvantages of integrated and separate methods for drafting personal information processing policies and personal information collection and use consent forms for companies providing multiple services with different personal information processing forms, and proposed an appropriate method to help the client make decisions. Thank you. Law firm Veat