Case Studies
Crawling business success for Legal review importance.
Data crawling is the technology that means exploring web pages using a program and automatically collecting information from a website to collect necessary data. This technology supports data-driven business models and plays an essential role in artificial intelligence (AI) and big data analysis, but it can be accompanied by legal issues that require attention. While data crawling may appear technically simple, it has a high possibility of causing legal issues. Collecting data without permission from websites where crawling is not allowed, or violating terms of service, can lead to legal liability. In particular, violations of the 「Copyright Act」, 「Personal Information Protection Act」, and 「Act on Prevention of Unfair Competition and Protection of Trade Secrets」(hereinafter “Unfair Competition Prevention Act”) are representative issues. Therefore, legal review is essential when companies utilize crawling technology to conduct business. 1. Possibility of Violating Terms of Service and Personal Information Protection Act Most websites specify limitations on data collection and utilization in their terms of service. Crawling that violates these terms of service can be considered a breach of contract. Therefore, it is very important to carefully review the terms of the website you intend to crawl before attempting it, and to determine whether crawling is legally permitted. Furthermore, according to the Personal Information Protection Act, collecting data containing personal information without obtaining consent from the information subject can be considered an illegal act. Not all data on a website can be freely used, and personal information, in particular, is strictly protected, so unauthorized collection of such data can lead to legal liability. 2. Possibility of Violating the Copyright Act and Database Copyright The Copyright Act protects creative content, and this protection can apply to databases as well as text, images, and videos. If the materials posted on a website are protected by the Copyright Act, crawling them and using or reproducing them without permission can be considered copyright infringement. Therefore, if you plan to commercially utilize materials collected through data crawling, you must conduct a legal review of this. 3. Whether it Violates the Unfair Competition Prevention Act The Unfair Competition Prevention Act prohibits obtaining or using a competitor’s data unfairly. Therefore, collecting information from a competitor through crawling or imitating a competitor's business model based on that information can be considered unfair competition. In particular, unauthorized collection and use of information that could be classified as a trade secret can lead to legal disputes, so companies must always review legal risks before crawling. Data crawling can be a powerful tool that creates significant value in business, but various legal issues can arise during the process. Therefore, companies that intend to utilize crawling must carefully review legal risks and collect and use data according to proper procedures. Law firm Veat is a law firm specializing in IT and startups and provides optimized legal advice to minimize legal risks in data crawling businesses and ensure that clients can operate their businesses with peace of mind. Furthermore, Law firm Veat provides legal advice in various business environments utilizing the latest technologies such as artificial intelligence (AI), big data, cloud computing, and metaverse and is positioned as a leading firm in IT-related law. If you need legal advice on data crawling and other IT legal matters, please contact a Law firm Veat IT attorney. Thank you. Law firm Veat
IT attorneys specializing in cybersecurity and personal information protection.
Law firm Veat’s IT specialized lawyers minimize legal risks for corporations in response to increasing cybersecurity threats and provide comprehensive legal advice. As crimes using deepfake technology emerge as a social issue, the importance of cybersecurity has increased. Deepfake is a combination of deep learning and fake, and uses AI technology to combine the face or body of a specific person into another photo or video in a realistic manner. Crimes involving the creation of false information, fraud, and defamation using deepfake technology can violate the trust of corporations and the privacy and reputation of individuals. Furthermore, the government is promoting workforce development through the ‘100,000 Cybersecurity Talent Development’ project, establishing cybersecurity as an important national security issue. According to the 2024 first half private sector major cybersecurity threat trends announced by the Ministry of Science and ICT and the Korea Internet & Security Agency (KISA), the number of reported incidents has been steadily increasing over the past three years, from 1,142 in 2022 to 1,277 in 2023, and the number of reported incidents in the first half of 2024 increased by approximately 35% compared to the same period last year, reaching 899. In particular, it was revealed that web server hacking (504 cases) and DDoS attacks (153 cases) have significantly increased. Amidst this increasing trend of cybersecurity threats, it is essential for corporations to strengthen cybersecurity to minimize legal risks in advance and to respond legally quickly in the event of an incident.
Information and Communications Network Act Compliance: Key Contents and Checkpoints of the Revised Information and Communications Network Act
On July 14, 2024, and amended on August 14, the 「Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.」 (hereinafter referred to as the “Information and Communications Network Act”) came into effect, bringing significant changes to startups and small businesses. With the strengthened information protection regulations and new certification systems introduced through this amendment, startups need to properly understand and comply with them. Especially, it provides opportunities for startups to prevent legal risks and promote stable growth by clearly presenting various legal standards required for business operations, such as personal information protection, illegal spam countermeasures, and simplification of information protection certification. If startups understand and apply these amendment details well, they can establish a better information protection system and increase customer trust. Furthermore, strengthened spam prevention measures and simplified certification systems will contribute to increasing business efficiency and reducing costs associated with legal compliance. This article will examine the key contents of the amendment to the Information and Communications Network Act and guide startups and small businesses on the benefits and utilization methods they can obtain. --- 1. Improvement of Illegal Spam Countermeasures System The amended Information and Communications Network Act, aimed at solving the problem of illegal spam, requires separate consent to be obtained when transmitting advertising information during nighttime hours (9:00 PM to 6:00 AM), and the results must be notified to users (Article 50, Paragraph 1, Subparagraph 1). Additionally, information and communications service providers must take measures such as service improvement to prevent illegal transmission of commercial advertising information (Article 50, Subparagraph 4). 2. Introduction of ISMS Simplified Certification System The amended Information and Communications Network Act introduces a simplified certification system for small businesses and certain conditions-meeting small businesses, based on the 「Small Business Basic Act,” compared to the existing Information Security Management System (ISMS) certification (Article 10, Subparagraph 1). 3. Mandatory Measures to Secure Safety of CI (Linked Information) CI (Linked Information) is important information used in the verification process. The amended Information and Communications Network Act imposes an obligation on verification agencies to take physical, technical, and administrative measures to ensure the safety of CI when creating or processing it (Article 35, Subparagraph 1). Additionally, institutions receiving linked information must use it only within the scope of the purpose for which they received it, and must follow strict security standards, including separating it from resident registration numbers. 4. Introduction of Order and Inspection System for Actions in Case of Security Incident The amendment to the Information and Communications Network Act introduces a system whereby the Minister of Science, ICT, and Future Planning can order information and communications service providers to take measures against security incidents when they occur (Article 18, Subparagraph 1). Furthermore, compliance with the order can be checked, and correction orders can be issued if necessary. The amount of fines that can occur for failing to report a security incident or failing to respond to it promptly has been increased. --- Law firm Veat is a leading firm that is at the forefront of solving complex legal problems faced by companies based on outstanding expertise in the IT and information and communications fields. In particular, it provides in-depth analysis and practical legal advice on personal information protection and information security regulations that companies must comply with according to the amended Information and Communications Network Act. Veat’s personal information protection team is composed of engineering majors, IT specialist lawyers, and provides optimized legal advice based on a wide range of understanding of both technology and law. In particular, it understands the complexity of business models utilizing information and communications, thoroughly analyzes the personal information processing process of each company and the correlation with the amended law, and supports companies to minimize legal risks. Law firm Veat also has a successful track record in various information security-related advisory services and civil and criminal lawsuits. So far, it has provided comprehensive legal services, such as on-site inspection response, audit preparation, certification, and consulting, to many companies so that they can prepare for legal problems. In particular, it provides strategic legal advice that identifies regulatory requirements of the supervising agency through law and policy analysis, and allows companies to maximize business efficiency while complying with legal obligations. Thank you. Law firm Veat
Customized legal consultation for clients operating platform services.
Recently, Law firm Veat received a request from a client operating a platform service connecting models, agents, makeup artists, and photographers, and provided legal consultation regarding the client’s business model. In this legal consultation, Law firm Veat provided the client with advice regarding the drafting of terms of service, advice on personal information collection and processing, and review of compliance with relevant laws and guidelines, which are essential for operating a platform business, and provided customized consulting based on the client’s specific circumstances. Legal Consultation Regarding Platform Services 1) Expansion of Platform Terms of Service and Disclaimer of Liability A platform service provider interacts with various stakeholders. It is essential to clarify the legal responsibility relationships between these parties. Law firm Veat designed the terms of service to minimize the client’s legal liability, taking into account the characteristics of the platform service. This broadened the scope of the disclaimer of liability as much as possible and helped prevent potential legal disputes. 2) Advice Regarding Collection and Processing of Personal Information Various legal issues can arise in the process of collecting and processing personal information from users in a platform service. Law firm Veat drafted personal information consent forms and privacy policies in accordance with relevant laws, including the Personal Information Protection Act and the Act on the Protection and Use of Location Information, which the client must comply with. In addition, a location-based service terms of service was also designed for location-based services provided on the platform. This enabled the client to minimize legal risks and establish a foundation for providing trusted services to users. 3) Review of Relevant Laws and Guidelines ◾ What is a Job Agency Business and a Job Information Provision Business? Job Agency Business A business of receiving applications for job seeking or job offers, searching for job seekers or employers (求人者), recruiting job seekers, and arranging employment contracts between job seekers and employers. It is divided into free job agency businesses and paid job agency businesses. Job Information Provision Business A business of providing job information such as job seeking and job offers through newspapers, magazines, and other publications, or wired/wireless broadcasts or computer communications. Law firm Veat reviewed whether the client's business qualifies as a job agency business or a job information provision business in accordance with relevant laws and guidelines, and provided advice to ensure that the client complies with relevant regulations and operates the business accordingly. Law firm Veat holds a unique position in online platform legal consultation. The firm’s attorneys, specializing in IT and startups, deeply understand both the technology and legal aspects to swiftly and accurately resolve complex legal requirements of clients, and have helped many clients achieve successful operations based on this understanding. Furthermore, Law firm Veat has played a significant role in resolving regulatory issues for new technology-based business models, leveraging its experience with ICT regulatory sandbox legal consultation. Law firm Veat has been recognized as a leading innovative regulatory firm and has received a commendation from the Ministry of Science and ICT for its contributions in the field of digital innovation. Law firm Veat provides essential legal consultation for platform operation and helps startups and IT companies expand their businesses without legal disputes. If you need legal consultation regarding platform services, please consider receiving customized consulting from Law firm Veat. Thank you. From Law firm Veat
Law firm Veat, Attorney An Il-woon, Appointed to Korea Startup Forum Startup Legal Support Team – Strengthening Legal Support for the Startup Ecosystem
Law firm Veat’s An Il-woon, partner attorney, has been appointed to the Korea Startup Forum (KoSF) Startup Legal Support Team. The Startup Legal Support Team is a program officially launched at the KoSF 8th Anniversary National Assembly Debate, and will be active in resolving the legal and regulatory barriers faced by startups. Korea Startup Forum (KoSF) is the largest startup organization in Korea, launched in 2016, with over 2,430 member companies participating. KoSF conducts various activities to promote the development and innovation of the startup ecosystem, focusing on strengthening communication between startups, the government, and the National Assembly, and establishing a free and fair market environment through policy improvements. KoSF continues to reflect the voices of startups in policy through various events each year and strives to build an innovative startup ecosystem. At this National Assembly Debate, KoSF commemorated its 8th anniversary, announcing a plan to strengthen the balanced development of the startup ecosystem, solidarity among entrepreneurs, and communication with the government and the National Assembly. To this end, it is focused on developing startup support policies and strengthening regional startup communities through a business agreement with the Digital Economy 3.0 Forum. The KoSF Startup Legal Support Team was established with the purpose of resolving various legal issues that startups inevitably face as they conduct business and to create a more stable and innovative startup ecosystem. The Startup Legal Support Team will not only provide professional legal advice to startups but also prepare proposals for legal system analysis and policy improvement, and provide rapid support in the event of legal disputes. Law firm Veat’s An Il-woon attorney is participating in the Startup Legal Support Team and will play a vital role in resolving complex legal issues faced by startups in areas such as IT, blockchain, and investment. An Il-woon attorney will focus on helping startups minimize legal risks and continue to grow, based on his extensive experience in IT and startup legal advice. Law firm Veat provides specialized legal advice in the startup and IT fields. Veat has grown alongside numerous startups and resolved legal issues. It possesses deep expertise in various legal issues such as startup investment attraction, mergers and acquisitions (M&A), blockchain, shareholder disputes, and intellectual property protection, and will do its best to contribute to the protection of the startup ecosystem through participation in this Legal Support Team. Law firm Veat and attorney An Il-woon’s joining of the Startup Legal Support Team is an important step in strengthening legal support in the startup ecosystem, resolving startup legal difficulties, and creating a fair and free startup environment. Together with the Korea Startup Forum, Law firm Veat will fulfill its role as a reliable legal partner, helping startups minimize legal risks and lead innovation. Thank you. From Law firm Veat
Personal Information Protection Day, Personal Information Attorney from Law firm Veat and guidelines for personal information protection
The Personal Information Protection Committee hosts Personal Information Protection Day, a statutory commemoration that highlights the importance of personal information protection and emphasizes the efforts we must take to protect our own personal information. It commemorates the first enactment of the “Personal Information Protection Act” on September 30, 2011, and is observed annually on September 30. During this period, a Personal Information Protection Week is also operated, providing an opportunity to re-emphasize the value of personal information and to check methods for protecting it in daily life. Law firm Veat Personal Information Attorneys’ TIP! Ways to Practice Personal Information Protection in Daily Life Law firm Veat personal information attorneys introduce several practical ways to protect personal information. These small habits, when consistently practiced, can help protect our precious personal information more safely. 1. Set a Secure Password: Password is the First Step in Personal Information Protection It is important to set a password that combines uppercase and lowercase letters, numbers, and special characters, and to change the password periodically. In particular, using the same password for multiple accounts should be avoided. 2. Check SNS Personal Information When posting photos or messages on SNS, be careful not to expose sensitive information such as names, contact details, and addresses. It is necessary to develop a habit of carefully checking the background of photos beforehand to ensure personal information is not included. Also, when using delivery apps or online shopping, use a confirmation number service to manage contact details so they are not exposed externally. 3. Do Not Click Suspicious Links Links from unknown sources can be a major channel for personal information leakage. Delete unsolicited advertising texts or emails and avoid clicking on untrusted links. 4. Log Out After Using a Public PC When using a public PC in a public place, be sure to check that you are logged out. If you leave the PC logged in, others can easily view personal information, so thorough management is required. 5. IP Camera Security Settings Password and security settings are essential when using an IP camera. Without a configured password, it can be easily accessed from the outside, increasing the risk of personal information infringement. Personal Information Protection with Law firm Veat Law firm Veat provides a wide range of consulting services based on extensive experience and expertise in personal information protection and information security. Law firm Veat’s Personal Information Protection Team, led by partners Baek Seung-cheol and Jo Eun-byeol, provides comprehensive personal information protection legal consulting, including personal information protection system setup, personal information processing policy drafting, and legal advice on compliance with the “Personal Information Protection Act.” In particular, Law firm Veat proactively identifies trends in Information and Communications Technology (ICT) and the Personal Information Protection Committee to deeply understand the latest legal information and regulatory changes regarding personal information protection, and provides updated legal consulting services to a wide range of clients, from startups to large corporations. On September 30, ‘Personal Information Protection Day,’ let’s remember the importance of personal information protection and create a safe digital environment together with Law firm Veat. Thank you. Law firm Veat
Legal consultation for adjusting excessive penalty clauses in rental agreements.
Law firm Veat received a request from a small-to-medium enterprise A (hereinafter referred to as the “client”) to consult on adjusting an unfair penalty clause in a rental agreement. The client wanted to terminate a specific rental agreement prematurely, and the rental agreement contained a penalty clause that required the client to pay an excessively large amount if they terminated the contract. The client requested Law firm Veat to advise whether they could argue the invalidity of the penalty clause based on the Standard Clause Act and whether there was room for adjustment. Law firm Veat reviewed the validity of the penalty clause in the rental agreement and, based on the possibility of arguing invalidity under the Standard Clause Act, sent a legal notice to re-adjust and renegotiate the penalty to a reasonable level as a measure before proceeding to litigation or dispute. Unfair Penalty Clause, Fairness as defined by the Standard Clause Act The Standard Clause Act is a law that protects consumers by regulating unfair clauses within contracts. Specifically, Article 6, Paragraphs 1 and 2, and Article 8 of the Standard Clause Act deem clauses that are unfairly disadvantageous to the client as invalid. This includes clauses that impose an excessively heavy delay penalty or liability on the client. It means that penalty clauses in contracts may be legally ineffective if they are too harsh on the client.
[Law firm Veat] Management dispute resolution capabilities as an IT and startup specialist law firm, highlighted.
Recently, Law firm Veat has been recognized by the economic magazine Bloter for its expertise in resolving IT and startup ownership disputes. Bloter focuses on the convergence of IT and other industries and deeply analyzes how the economy is changing based on IT. Boutique law firms (law firms with strengths in specific areas) are excelling in the field of 'ownership disputes' and are described as having strengths in their expertise accumulated in areas such as M&A, corporate advisory, and a high understanding of small and medium-sized enterprises. In particular, Law firm Veat, founded by lawyers with degrees in IT, has highlighted its expertise in areas such as IT, software, e-commerce, corporate advisory, M&A, blockchain, and intellectual property.
Potential stock options for overseas subsidiary employees and executives, Law firm Veat’s legal review.
Law firm Veat received a request to review the legal possibility of granting stock options to overseas subsidiary employees of a domestic parent company A (hereinafter referred to as “the client”). Law firm Veat comprehensively analyzed the “Special Measures Act for the Promotion of Venture Businesses” (hereinafter “the Venture Business Act”) and related regulations to review the differences between domestic and overseas subsidiary stock option grants and their legal permissibility. Also, considering that the company was established overseas, it provided clear guidance that it may be subject to different application than domestic regulations, reviewed the legal basis and practical procedures to grant stock options to overseas subsidiary employees. What points should be considered regarding stock options? Startups often lack sufficient financial resources, making it difficult to provide financial rewards such as high salaries to founding members or important talents. In such cases, stock options linked to the company's growth can provide significant benefits to both the company and employees. Through stock options, employees receive the right to purchase company shares at a predetermined price after a certain period, and can receive significant financial benefits as the value of the shares increases with the company's growth. This allows companies that currently lack sufficient financial resources to attract excellent talent and contributes to long-term dedication and contribution to the company. Especially, employees who receive stock options act as stakeholders of the company, rather than simple employees, and have greater responsibility and motivation to perform their duties. However, stock options directly affect the company's equity structure, so the issuance process is subject to legal regulations. The “Commercial Code” stipulates basic requirements related to the issuance of stock options, and legal review of the eligible recipients, procedures, limits, etc. is necessary. If the dilution of equity or the impact on corporate value is not considered, conflicts may arise with existing shareholders. In addition, startups and venture businesses may receive different legal benefits than general companies. Startups and venture businesses may be subject to the Venture Business Act if certain conditions are met, so it is recommended to consult with a startup attorney and conduct a legal review to determine what is best. Also, stock options involve various legal factors such as tax issues, equity dilution, and the legality of recipients, requiring careful review. Especially for overseas subsidiaries, it is important to receive assistance from legal experts as it is necessary to examine the connection with Korean law while complying with the laws and regulations of the respective country. Law firm Veat, based on its experience of providing legal advice to numerous startups and IT companies regarding stock option design and issuance, analyzes complex legal issues related to stock option issuance and provides legal advice tailored to the characteristics of each company to support the client’s successful growth. If you have any questions regarding stock options, please contact Law firm Veat. Thank you. Law firm Veat
Venture company stock purchase option (stock option) minimum tenure safety device establishment
Law firm Veat reviewed the stock option grant contract on behalf of venture company A (hereinafter referred to as "the client"). Stock options are an important incentive system that allows a company to secure excellent talent by granting employees the right to purchase shares at a specific price, and to reward employees in proportion to the company’s growth, thereby promoting the growth of the organization. The conditions for granting stock options, the company's operating method, legal structure, and the company’s articles of incorporation are different for each company, so they must be systematically reviewed to ensure they are legally sound and appropriate for the company’s situation. Stock Option Grant Consideration ✔ The Commercial Code comprehensively covers regulations related to the company’s governing structure, and according to Article 167-3 of the Commercial Code, the grant of stock options must be based on the articles of incorporation, which can be amended through a special resolution of the general meeting of shareholders. ✔ The Venture Company Act is a special act aimed at promoting and protecting venture companies and contains regulations and support systems reflecting the special characteristics of venture companies. According to Article 16-4 of the Venture Company Act, a venture company can grant stock options for a certain period from the date of venture company certification, and must comply with specific regulations regarding the targets and conditions. At the client’s request, we allowed stock options to be exercised even if a merger and acquisition occurred before the stock option exercise period, protecting employees from losing their stock option rights in complex M&A situations that often occur in startups. In addition, we reflected the client’s request to set different minimum employment periods for each quantity in granting stock options. This is a way to encourage employees’ long-term employment and supports the company’s stable talent management. Law firm Veat thoroughly reviewed the stock option grant contract to ensure it did not violate the Commercial Code, the Venture Company Act, and the client’s articles of incorporation, met all legal requirements, and reflected the client’s requests, such as M&A and other management situations, to ensure that the stock option system could be operated safely from a legal perspective. Law firm Veat provides optimal expertise based on extensive experience in legal advisory services related to the Commercial Code, the Venture Company Act, and stock options for startups and venture companies, strictly complies with complex legal procedures such as amendments to the articles of incorporation and resolutions of the general meeting of shareholders, minimizes legal risks for startups and venture companies, and prevents legal disputes in advance, establishing itself as a reliable partner for the company’s growth and success. If you require regular legal advisory services regarding various corporate legal issues that may arise in venture companies and startups, please refer to the following information and contact Law firm Veat. Thank you. Law firm Veat