Case Studies
[Investment] Law firm Veat CJ O Shopping Funshop M&A Deal sourcing and all legal advisory services provided
Law firm Veat provided Total Service necessary for M&A, such as Deal Sourcing, Legal D/D, Share Purchase Agreement, etc., related to the process of CJ Shopping M&Aing Funshop, and successfully concluded this M&A. The specific work performed by Veat in carrying out this M&A is as follows. 1. Deal Sourcing (Connecting the Buyer – Seller) 2. NDA (Non-Disclosure Agreement) drafting 3. Legal D/D (Legal Due Diligence) execution 4. Valuation negotiation 5. Drafting and negotiation of a draft of the structure of this M&A 6. Drafting and negotiation of draft agreements related to M&A, such as SPA (Share Purchase Agreement), SHA (Shareholders Agreement) 7. Consulting on post-closing measures, etc. (including personal information consulting). This case is somewhat unique for a law firm, as Veat started with Deal Sourcing from the very beginning. We believe this was possible based on the trust Veat has built in the investment industry. In addition, we derived a valuation negotiation point based on the results of Financial D/D, and furthermore, in the finalization process of the agreement, we were able to quickly complete the signing procedure by adjusting conflicting interests, taking into account the results of Legal D/D, based on Veat's know-how. In particular, even after this M&A, we suggested an M&A structure to motivate the transaction parties to continue growing the company, and we put a lot of effort into the process of negotiating related to this. We think this case could be meaningful to both startups and large corporations. From the startup's perspective, it could be a solution for an exit model, and from the large corporation's perspective, it could be a new growth engine. It will be necessary to actively consider M&A between large corporations and startups. If you are a corporate executive looking for new growth engines or a startup considering an exit, and need Veat's advice, please feel free to contact us at any time. Thank you. Law firm Veat
[Consultation] Providing a legal guide on the act of posting online news articles
Online internet articles are easy for anyone using the internet to access and it's very simple to copy or save the full text. That’s why many people post the full text or links to articles written by newspapers on internet homepages, communities, blogs, and SNS, and share them. However, just because many internet users upload posts in this way, if they carelessly distribute internet articles so that the public can see them using the same method, there is a high probability of legal problems. News articles can also be protected by the current copyright law as copyrighted works, except for specific cases, and can constitute copyright infringement depending on the form of posting. Copyright infringement acts such as unauthorized copying can result in criminal punishment under the current copyright law, so extreme caution is necessary. Company A posted an article related to Company A written by a journalist from Media Company B on the Company A homepage bulletin board but received a copyright infringement notice from Media Company B, And they inquired about countermeasures to Law firm Veat. In response, Veat referenced the copyright law, Supreme Court precedents, and related legal theories to determine whether the newspaper article posted by Company A constituted a copyright and the possibility of Company A’s posting action violating the copyright law, and provided Company A with the legal guidelines they should follow. Thank you. Law firm Veat
[Consultation] Regarding response measures when investigative agencies request personal information.
Operating a real estate platform, OO Company has frequently received requests for personal information from investigative agencies, including cases based on warrants, as well as those based on verbal requests or simple official documents. When receiving such requests, OO Company requested advice on how to handle them. Law firm Veat divided the cases into ① when a warrant is presented (which can be divided into cases where the original is presented and cases where a copy is presented via fax, etc., followed by the original) and ② when personal information is requested based on official documents without a warrant, and provided opinions on the appropriate measures for each case. In particular, regarding cases where personal information was transmitted to investigative agencies without user consent, it analyzed practical examples following (1) a ruling recognizing a compensation obligation of KRW 500,000 for the business entity (Seoul High Court Ruling of October 18, 2012, 2011na19012) and (2) the fact that the Seoul High Court ruling was overturned (Supreme Court Ruling of March 10, 2016, 2012da105482) and subsequent practical practices. Law firm Veat comprehensively considered relevant regulations, the intent of the Seoul High Court and Supreme Court rulings, and current practical examples to suggest the most appropriate and lawful response measures to its client. Thank you. Law firm Veat
[Consultation] Responding to a certified mail claiming font copyright
Small companies often receive certified mail demanding font purchases and settlement money, claiming that font images used in their companies violate copyright law. These certified mailings often contain content that does not align with copyright law, meaning there are cases where it is not actually necessary to purchase the font. Company A received a certified mail from a certain font developer claiming that its advertisement images used the developer’s font and that the company needed to purchase the font, and entrusted Law firm Veat with responding to it. Law firm Veat examined the font images used in Company A’s advertisement images and concluded that Company A’s use of the font images did not violate copyright law, and sent a reply certified mail to the font developer attaching relevant legal articles and precedents. After Veat’s reply, the font developer had no further response, and Company A was relieved of the unnecessary need to purchase the font. Thank you. Law firm Veat
[Legal Dispute] Trademark Use of Fishing Bait Leading to Damages Lawsuit
Law firm Veat represented the defendant in a civil lawsuit filed under the Unfair Competition Prevention Act, where the client was sued for using an existing trademark “A”. The plaintiff argued that the client’s actions were subject to the Unfair Competition Prevention Act, but Veat argued that the plaintiff’s trademark lacked fame and that the period during which the plaintiff did not conduct business due to its own reasons should be excluded from the damages period. Ultimately, the court recognized the defendant’s argument and reduced the damages period, and the plaintiff and defendant concluded the case through agreement. Law firm Veat is conducting cases with lawyers who are well-versed in related legal principles based on its experience in numerous Unfair Competition Prevention Act cases. We are working to minimize the client’s losses through fact-finding and legal analysis, not only in cases where a complaint has been filed but also in cases where the client is being sued. Thank you. Law firm Veat
[Consultation] Providing consultation on whether you are a mandatory ISMS target
D Company inquired with Law firm Veat regarding whether they are obligated under the “Act on the Promotion of Information and Communication Network Utilization and Information Protection, etc.” as an ‘information communication service provider,’ and whether they are subject to the information protection management system (hereinafter referred to as ‘ISMS’) pursuant to Article 27 of the same Act. According to Article 27, paragraph 2 of the revised Act on Information and Communication Network, 1. A person who has received a permit pursuant to Article 2, paragraph 1 of the “Act on Telecommunications Business” and provides information communication network services in accordance with the details specified by Presidential Decree, 2. An integrated information communication facility business operator, 3. A person who meets the criteria specified by Presidential Decree, with annual sales or income of 150 billion won or more, or with information communication service sales of 100 billion won or more in the previous year, or with an average daily number of users of 1 million or more for 3 months, is obligated to obtain certification; there were ambiguities in the interpretation of the requirements of item 1, and it was necessary to clearly confirm them. Law firm Veat promptly sent a request for materials to D Company regarding the requirements of the aforementioned provision, collected and analyzed related materials, and, along with a review of the revision history of Article 27, provided advice to the effect that D Company is not an obligated party under current law. Thank you. Law firm Veat
[Consulting] Review of Online Shopping Platform Management Entrustment Contract
SI business as its main business, company A, in order to also enter the O2O business, started an online shopping platform operation business selling a famous clothing brand. In this process, company A outsourced part of the platform operation to a small and medium-sized enterprise, forming a subcontracting structure linking the client-subcontractor (subcontractor)-lower subcontractor. The Subcontracting Fair Trade Act includes regulations protecting lower subcontractors, such as prohibiting unfair special clauses and price reductions when a large company outsources services to a small and medium-sized enterprise. Law firm Veat provided advice to company A to ensure that it did not violate the Subcontracting Fair Trade Act while acting as a subcontractor (subcontractor) and entering into a contract with the lower subcontractor. As a result, company A was able to successfully outsource shopping platform operation to the lower subcontractor without violating the law. Thank you. Law firm Veat
[Consultation] Review of the gambling nature of probabilistic items
Probability-based items refer to game items that can be sold for a fee within a game or exchanged using game currency, and have a certain degree of expected value that allows them to be exchanged for other game items. They are currently well known as random boxes or random capsules. Recently, probability-based items have rapidly emerged as a major business model for game companies and are functioning as a main source of income for many companies. While probability-based items are contributing to the growth of game companies, criticisms have continued that they are fostering gambling tendencies among adolescents and other users. Therefore, Agency A consulted Law firm Veat to inquire whether probability-based items could be recognized as having a gambling nature under current law. Veat, referring to the Criminal Code and other laws related to the concept of gambling, such as the Act on Promotion of Game Industry and Regulation and Punishment of Gambling Acts, and relevant precedents, reviewed the scope of the concept of gambling as defined in current gambling regulation laws and presented an opinion on whether Agency A could regulate probability-based items by applying current laws. Thank you. Law firm Veat
[Litigation] Appeal of Bribery Conviction Rejected
Law firm Veat successfully obtained an acquittal on the charges of providing money in a case where a public official was indicted for bribery. Veat focused on the prosecutors' illegal evidence collection, clarifying that the evidence could not be adopted as illegally obtained evidence and was false testimony resulting from the prosecutors' coercive investigation. The court of first instance recognized this and acquitted the defendant, and ultimately, the Supreme Court dismissed the prosecutors' appeal, concluding the case. Law firm Veat will continue to do its best to protect its clients against prosecutors' illegal or forced indictments and will establish and operate preventative measures to prevent client damages resulting from such actions. Thank you. Law firm Veat
[Consultation] ‘B Brand’ Personal Information Terms and Conditions Review
Law firm Veat is regarding A company aiming for a global jewelry manufacturer’s ‘B brand’, providing comprehensive legal advice on (1) personal information collection, use, provision consent forms (personal information processing consent forms), customer registration cards, personal information processing policies (Korean/English), and (2) information protection legal advice, and (3) advice on contracts spanning various fields such as sales/business/product manufacturing/supply. Law firm Veat, in providing the above legal advice, has taken into account the requests of clients aiming for global brands, not only domestically but also ensuring usability worldwide. Thank you. Law firm Veat