Case Studies
[Consulting] Review of whether or not they are a similar investment advisory firm
In recent years, the number of companies providing information on financial investment products through various media such as TV, internet broadcasting, and web pages has rapidly increased. The Act on Capital Markets and Financial Investment Businesses (Capital Markets Act) defines such activities as providing investment decisions or advice on the value of investment products as quasi-investment advisory services, and requires those engaging in quasi-investment advisory services to register with a financial supervisory authority. Company A operates an application providing information on stock listings and has established a plan to provide new-style stock listing content to its members. However, concerns arose regarding whether the services Company A intended to provide would constitute quasi-investment advisory activities. Consequently, Company A requested Law firm Veat to conduct a legal review of the services. In response, Veat reviewed whether the activities fell under quasi-investment advisory services, referencing relevant laws under the Capital Markets Act and related practical materials from the financial supervisory authority. By providing legal advice regarding factors to consider if the activities were deemed quasi-investment advisory services, Veat helped Company A establish a business model allowing them to seamlessly provide services to its customers. Thank you. From Law firm Veat
[Consulting] Drafting of stock purchase agreement and representation of transfer procedure
A company, due to several rounds of investment and a long period of business operations, has approximately 50 shareholders, and the shareholder agreements between these shareholders were concluded haphazardly, making a shareholder cleanup necessary. Therefore, A company decided to purchase shares from some shareholders to carry out the shareholder cleanup, and six individual shareholders had to enter into contracts to sell all of their shares to the investor. Law firm Veat, after the six individual shareholders selling shares had divested the obligations arising from the existing shareholder agreements, presented a transaction structure allowing for stock acquisition, also considering the penalties and transfer tax issues arising from the sale of shares. Furthermore, as the stock acquisition consideration paid during this process was not insignificant, it also acted as an escrow procedure to temporarily hold the acquisition consideration. As a result, A company was able to successfully complete the shareholder cleanup, and the individual shareholders were able to exit successfully by selling their shares at a higher price than their initial investment. Thank you. Law firm Veat
[Consultation] Providing consultation regarding personal information leakage incidents
Law firm Veat provided consultation to companies that experienced personal information leakage incidents regarding crisis response for personal information leakage incidents. Veat explained key issues and response directions for each topic, focusing on civil/criminal/administrative issues that may arise when a personal information leakage incident is confirmed, and discussed response measures for fines and statutory/punitive damages under the recently revised Personal Information Protection Act and the Information and Communications Network Act. Thank you. Law firm Veat
[Consulting] Shareholder Agreement Consulting and Contract Drafting
A company's founder sought Law firm Veat to draft a shareholder agreement to prevent founding members from transferring their shares to outsiders or leaving the company without each other’s consent, while paying them a portion of the founder's shares. Veat drafted a shareholder agreement, following the founder’s opinion, which included provisions for allocating a certain percentage of shares to the founding members for three years, and returning a certain percentage of shares if the three-year service period is not met, as well as provisions regarding preemptive rights. Thank you. Law firm Veat
[Consulting] Review of the availability of the name "Supporters"
Business names can be interpreted legally in various ways, such as trademarks or business names, depending on their nature. The scope of the exclusive right to use a name can vary depending on this legal interpretation, and violations may result in penalties or fines. Therefore, the company must carefully consider relevant laws when using a name in its business operations to avoid infringing on the business names and trademarks of others. Company A began using the name B while operating a supporter program for a domestic brand. However, it later found out that the name was similar to the business name C of another small business owner, and inquired whether using the name B would cause legal problems. In response, Law firm Veat reviewed the possibility of use through relevant laws such as the Commercial Code and the Unfair Competition Prevention Act, and presented a plan for Company A to continue using B as a supporter name in the future. Thank you. Law firm Veat
[Consultation] Review of server equipment and maintenance contract with a US company
Company A, engaged in SI (System Integration) business, entered into a service supply contract with Company B, a global provider of server hardware and maintenance services. Law firm Veat reviewed the service supply contract between Company A and Company B. The contract was tailored to Company B's scale and standardized transaction format; upon initial review, the contract appeared to have no areas needing revision. However, upon closer examination of the contract, content with the potential for future disputes was discovered. Law firm Veat provided revision opinions stating that words in the translated English contract have different meanings in Korean legal terms, and compiled and provided a review opinion summarizing other points deemed unfavorable to Company A. Thank you. From Law firm Veat
[Consulting] Review of Product Supply Agreement and Confidentiality Agreement
In some transaction fields, there are cases where transactions are promised between two companies without writing a contract. However, there is a problem that a lot of time and cost are consumed to solve problems that may occur in the transaction process, not only because it is practically difficult to confirm agreed items without writing a contract, but also because it is difficult to prevent possible legal problems that may occur later. Especially when one party fails to fulfill contractual obligations, resulting in a legal lawsuit, the contract plays the most decisive role in the lawsuit. Therefore, recently, more economic entities than before recognize the importance of contracts and are writing them in writing, recognizing contract writing as one of the most important processes in business. Company A is a manufacturer that produces leather with special functions and wanted to enter into a supply contract with Company B to supply leather. Since Company B is a company that receives leather from Company A and supplies it to other companies, it was in a situation where it needed to receive leather supplies without any problems. To this end, Company A requested Law firm Veat to review the product supply contract and confidentiality agreement to stably maintain the contract with Company B and to clarify each other's rights and obligations to facilitate smooth procurement of products. Accordingly, Law firm Veat proposed revisions to parts that could be problematic in the supply contract, suggestions for adding content, and advice on parts that should be revised to consider Company A's situation in the confidentiality agreement, which helped reduce legal risks that may occur later. Thank you. Law firm Veat
[Consulting] A Researcher Personal Information Protection Consulting
Law firm Veat provided advice on personal information protection when Researcher A built a personal information processing system for the ‘B service’ related to scientifically gifted individuals. Veat focused on issues such as the collection of personal information of individuals under 14 years of age when Researcher A built the service, the fact that the scientifically gifted individuals continue to grow and change their affiliated schools or institutions, and the need for organic collaboration between these institutions. It provided comprehensive advice related to personal information protection to protect the personal information of these gifted individuals and their legal guardians, while also ensuring organic collaboration between institutions. Thank you. Law firm Veat
[Consulting] Stock option design and assignment contract drafting
Startups often find it difficult to provide high salaries and similar financial rewards to founding members and key talent. In these cases, stock options (stock purchase options) are a useful tool to attract key talent. When stock options are granted to employees, the company may not be able to provide immediate large financial rewards, but can reward them in line with the company's growth, and employees can be motivated to contribute to the company’s growth. Such stock options affect the company's equity structure and are therefore regulated by the Commercial Code. However, for startups and venture companies, if certain conditions are met, they can grant stock options with more relaxed issuance requirements through the “Special Measures Act for the Promotion of Venture Companies” (hereinafter referred to as the Venture Company Act). Law firm Veat advised A Company to grant stock options in compliance with the Commercial Code and the Venture Company Act, and prepared and provided the stock option grant agreement accordingly. A Company was able to grant stock options to the founding members in compliance with regulations through Veat’s advice and avoided the risk of the stock option grant agreement becoming invalid due to a violation of laws. Thank you. Law firm Veat
[Consulting] Review of the possibility of nullity of a previously registered trademark and the possibility of trademark use by the prior user.
Company A has been selling a specific product under the name B for a long time, and this product sales performance has significantly contributed to the growth of Company A. However, recently, while Company A continues to sell product B, it received a warning from the trademark holder who suddenly registered the name B as a trademark. Accordingly, Company A inquired with Law firm Veat regarding whether there are ways to continue using the name B, which has been registered as a trademark by another person. Trademark is the right to exclusively use a trademark for designated goods, and trademark registrants are, in principle, exclusive and proprietary property rights. Therefore, if another person uses a validly registered trademark, trademark infringement may be an issue, and the trademark registrant can request the trademark infringer to stop using the trademark, etc. Accordingly, Law firm Veat investigated the factual relationship related to the product sold by Company A, analyzed the provisions of the Trademark Act and relevant case law, and provided an answer regarding the possibility of trademark invalidity under the Trademark Act and the possibility of trademark use by the prior user, considering the situation that can be ascertained at present. Thank you. Law firm Veat