Case Studies
Medical device product explanation meeting related medical device act amendment reflection legal review
Law firm Veat received a request from medical device startup A (hereinafter referred to as the "client") regarding legal review of questions related to the medical device product description meeting. The Medical Device Act and Fair Competition Ordinance generally prohibit providing economic benefits to promote the sale or rental of medical devices. In this regard, Law firm Veat’s Startup Consulting Team provided the client with detailed guidance on the specific criteria and exceptions they must comply with. CSOs (Contract Sales Organizations) must comply with the regulations stipulated in the Medical Device Act and Fair Competition Ordinance. Law firm Veat’s Startup Consulting Team helped the client, a medical device startup, understand the scope of economic benefits that medical device sales or rental agents can provide and provided advice necessary to manage legal risks. The amended "Medical Device Act," revised on August 8, 2023, and scheduled to take effect on February 9, 2025, includes new definitions for medical device promotional agents, reporting obligations, compliance with reporting and education, and prohibited regulations. Law firm Veat Startup Consulting Team provided detailed guidance on the main contents of the amended Act and what medical device-related companies must comply with, and carefully addressed the legal issues needed during the preparation process. Reporting obligations and compliance requirements as a medical device promotional agent pursuant to the Medical Device Act amended on 2023.08.08 Medical device startups must comply with product certification and approval procedures and establish manufacturing and quality management systems. Compliance with medical device-related regulations, including GMP certification, is an important factor in product development and promotional activities. In addition, reporting obligations and compliance requirements for medical device promotional agents have been newly introduced in accordance with the Medical Device Act amended on 2023.08.08. Article 6, Paragraph 4 of the Medical Device Act stipulates: “A person who seeks a manufacturing license pursuant to paragraph 1, and a person who seeks a manufacturing license or manufacturing certification, or makes a manufacturing notification pursuant to paragraph 2, shall prepare the necessary facilities and manufacturing and quality management system in advance in accordance with the total prime minister’s ordinance and apply for or notify the license or certification. However, this shall not apply in cases where quality control tests or manufacturing processes are entrusted in accordance with the total prime minister’s ordinance.” The amended Medical Device Act regulations define the contents that manufacturing license and notification should review in advance, change permit, obligations of manufacturers, and spending reports regarding the provision of economic benefits, etc., that promotional agents and medical device companies must do, so we recommend that you prepare in advance in accordance with the Medical Device Act amendment that will take effect on February 9, 2025, which is not currently applicable to the Medical Device Act. For medical device-related startups, it is important to undergo a complex GMP certification and other professional legal review processes related to medical devices. In particular, when holding a medical device product description meeting, it is essential to carefully review with legal experts with extensive experience in bio/healthcare legal consultation to ensure compliance with the Medical Device Act and related regulations.
Songdo Young, Representative Attorney, On-site Consultation for Metaverse Integration Activation and Global Market Leadership
Law firm Veat's Songdo-young representative lawyer attended the 'Metaverse Convergence Activation and Global Market Leadership On-site Consultation' with the Ministry of Science and ICT and private experts, and exchanged presentations and opinions on the Metaverse Promotion Act and other Metaverse industry legislation. On June 12, the 'Metaverse Convergence Activation and Global Market Leadership On-site Consultation' was held to revitalize the Metaverse industry. This consultation was held at Metaverse specialized company Inosiulation, where the Ministry of Science and ICT and private experts detailedly discussed various measures regarding important legal matters and regulatory systems related to the Metaverse industry. Law firm Veat's Songdo-young representative lawyer explained the main contents of the 'Virtual Convergence Industry Promotion Act' enacted on February 27 at this consultation and announced the composition and operation plan of a task force (Task Force, TF) to strengthen the legal environment of the Metaverse industry. This consultation shared opinions on various approaches to solve various legal and regulatory issues faced by the Metaverse industry, such as the expansion of industrial convergence, resolution of regulatory difficulties, and systematic industrial support measures, and to support the sustainable growth of a new digital ecosystem. Law firm Veat’s Songdo-young representative lawyer’s presentation covered measures for organizing the legal environment for related industries to explore the future of the Metaverse industry, and essential elements for securing a leading position in the global market and achieving sustainable growth. Songdo-young representative lawyer expressed his ambition to continuously research legal issues in the ever-changing Metaverse field and support the growth of the Metaverse industry. Law firm Veat was recognized for its contribution to enhancing the competitiveness of the entire industry through digital convergence and received a commendation from the Minister of Science and ICT at the 2023 Korea Digital Innovation Award ceremony, demonstrating its contribution to the development of new industries. Law firm Veat has professional knowledge and know-how on legal and regulatory challenges in rapidly growing new industries such as AI, cloud computing, and the Metaverse, and provides a robust legal foundation so that our clients can successfully develop their businesses. Thank you. Law firm Veat
[Law firm Veat_PlatForm Column] Why is copyright important? The basics of the content business
Law firm Veat's Technology Intellectual Property (TIP) team professionally addressed copyright, which is the foundation of IP (Intellectual Property) content business, through Platum, a magazine specializing in startups. Content and other IP assets are becoming valuable assets like land or buildings. This column explains copyright law, which has the greatest influence on IP/content, in an easy and detailed manner. The TIP team of Law firm Veat provided detailed information necessary for IP startup business operators through this column published on Platum. You can check the full article through [해당링크]. In IP startup businesses, various legal issues related to the creation, distribution, and utilization of copyrighted works, such as self-produced content or third-party copyrighted works, can arise. If such content is misused, copyright infringement issues can occur. Therefore, we recommend that you receive legal advice from legal experts with extensive experience handling intellectual property law cases, including copyright review, contract drafting, and copyright infringement response from the early stages of your IP business. The TIP team of Law firm Veat is helping to minimize legal risks related to various intellectual property issues related to content and providing professional legal advice to IP startups. We provide comprehensive content legal consulting and litigation advice on copyright, trademark, patent, design rights, and unfair competition prevention law in the latest trend technology fields such as NFT, metaverse, and games. The TIP team is led by Attorney Oh Seung-jong, who served as the chairman of the Copyright Committee, and includes Managing Attorney Choi Seong-ho, who was selected as a "Leading Lawyer" in the TMT field of Legal Times, Attorney An Il-woon, who is actively serving as a community specialist for the Korean Copyright Committee, and Attorney Jeon Yong-hwan, who has extensive experience in ICT regulatory sandbox and pilot service legal consulting. The team is composed of experts with both professional knowledge and practical experience to solve complex copyright and intellectual property issues. Thank you. Law firm Veat
An Il-un Partner Attorney, Interview with Outstanding, an IT specialized news media, regarding stock options and RSU.
Law firm Veat’s An Il-woon partner attorney detailed the core issues of startup talent acquisition, namely ‘stock options’ and ‘RSU (Restricted Stock Unit)’ in an interview with IT specialized news media outlet OutstandingTV. Please refer to the video below for the full interview. If you require legal advice regarding stock options (stock purchase options), RSU, or related matters, please contact Law firm Veat. In this interview, partner attorney An Il-woon introduced what stock options and RSUs are in an easy-to-understand manner and provided detailed explanations of what startups should consider when contemplating equity compensation. RSU is emerging as a talent compensation for startups, what is the difference from stock options? [As Show Episode 105 with Law firm Veat attorney An Il-woon] - YouTube RSUs certainly have more convenience compared to stock options. Once you obtain stock, it can be considered company assets. Although there is not a significant difference in the sense that ‘the company provides compensation to employees using its cash or its stock,’ the legal procedures required for issuing new shares are complex in the case of stock options, but RSUs are generally considered to have the advantage of being less cumbersome. Source: Outstanding TV (https://www.youtube.com/@outstandcrew) Attorney An Il-woon has accumulated a deep understanding of corporate mechanisms as a former developer at a large corporation. He has served as an ICT startup legal mentor for the Ministry of Science and ICT and as a lawyer training instructor for the ‘2020 Venture Startup Investment Academy’ of the Korean Bar Association, exhibiting expertise combining theory and practice as a consulting and counsel attorney for various corporations and providing essential legal advice for startups' growth and global expansion. Law firm Veat is a startup-specialized law firm providing essential legal advice for startups' growth and global expansion, and is centered on experts in various fields such as IT specialized attorneys, engineering graduates, advisors to the Personal Information Protection Commission, and attorneys affiliated with the Korean Bar Association Blockchain Committee, solving a wide range of legal issues for startups and providing greater value to clients. Thank you. Law firm Veat
[Law firm Veat_Plattum Column] What happens to perks for resold NFTs?
Law firm Veat's Technology Intellectual Property(TIP) team easily addressed resale NFT perks through the startup specialized magazine, Platum. NFTs can come with various perks. This column details the perks with a thorough explanation and explains what is necessary for NFT sellers when providing perks, and also addresses the disadvantages of not providing perks. Law firm Veat’s TIP team provided detailed analysis on points to be careful of when NFTs have various perks through the column published on Platum, providing necessary information for NFT sellers. You can check the full column through [해당링크]. It is important to clearly state that you can provide the perks when offering NFT perks. Especially, to prepare for disputes such as when the specified conditions differ or when you are unable to provide the promised perks, it is desirable to have a contract drafted and discuss solutions with legal professionals who have a deep understanding of intellectual property rights, including NFTs. Law firm Veat’s TIP team provides in-depth and professional legal advice on various intellectual property issues related to NFTs, and provides comprehensive legal consulting and litigation advice on copyright, trademark, patent, design rights, and unfair competition prevention laws in the latest trend technology fields such as NFTs, metaverse, and games. The TIP team is composed of experts with professional knowledge and practical experience who can solve complex copyright and intellectual property issues, led by attorney Oh Seung-jong, who served as the chairman of the Copyright Committee, representative attorney Choi Seong-ho, who was selected as the 'Leading Lawyer' in the Legal Times TMT field, attorney Ahn Il-woon, who is actively engaged as a community specialist in the Korean Copyright Committee, and attorney Jeon Yong-hwan, who has abundant experience in ICT regulatory sandbox and proof-of-service legal consulting. Thank you. Law firm Veat
Corporate lawyer bankruptcy application review and bankruptcy application form drafting.
Law firm Veat received a request from startup A (hereinafter referred to as “the client”) to support the bankruptcy filing process. The client faced several difficulties, including failed investment attraction, discord between co-founders, and failed acquisition, resulting in a precarious situation where liabilities exceeded assets, leading to the decision to file for bankruptcy. The Veat Startup Consulting Team thoroughly reviewed the company's overall situation, including an overview of the business, shareholder status, capital status, employee status, and asset and liability status. In particular, it identified the cause of bankruptcy and the circumstances leading the debtor to bankruptcy, assisting the client in drafting the bankruptcy application. The Veat Startup Consulting Team carefully considered the company’s current situation, as well as possible legal options and their pros and cons, to advise the client in making the best decision. It is advisable to proceed with the bankruptcy proceedings with a corporate lawyer. The bankruptcy process is not simply a debt settlement process, but a legal means to protect the company's assets and pay as many debts as possible. The bankruptcy process involves proceeding with a court ruling that liquidates the company’s assets to distribute them to creditors in order of priority, when the company is not in a situation to repay all debts with its assets. The purpose is to ensure that creditors receive equal debt settlement and to liquidate unrecoverable companies to prevent additional losses. When drafting a bankruptcy application, it is important to clearly substantiate the grounds for bankruptcy due to payment inability or excessive debt. The company’s detailed information must be accurately recorded in the bankruptcy application, and the court will appoint a bankruptcy trustee to proceed with the process, so it is important to record assets, liabilities, and other legal relationships accurately and reliably. The bankruptcy process is complex, and it is often difficult for management to objectively assess the management status. Therefore, we recommend seeking the assistance of a legal professional to objectively evaluate the company’s assets and liabilities during the bankruptcy application process and comprehensively review the validity of the bankruptcy application. Law firm Veat has been selected as a notable firm in the ‘Fintech Financial Services/Technology-Based Startup Consulting’ category by THE LEGAL 500, a global law firm ranking agency. We provide comprehensive legal services to companies experiencing legal difficulties, such as bankruptcy applications, and assist in the growth and operational processes of various startups by providing legal advice, exploring new business opportunities or restructuring existing businesses. In particular, as a trusted partner growing together, Law firm Veat provides regular legal services to understand the difficulties of various companies, resolve complex legal procedures, protect the client’s legal rights, and achieve the best results. If you need help with corporate legal issues, please contact Law firm Veat. Thank you. Law firm Veat
Foreign exchange reporting legal review for foreign investors who want to invest in domestic unlisted companies.
Law firm Veat received a request from startup A (hereinafter referred to as "the client") and reviewed the foreign exchange transaction reporting guidelines for foreign investors wishing to invest in unlisted domestic companies through the Foreign Exchange Reporting Center. This guideline, reviewed by Law firm Veat Foreign Exchange Reporting Center, provided valuable information to foreign investors who are interested in investing in domestic companies but lack information about the necessary reporting procedures or conditions. Direct investment by a foreign investor in a domestic company requires investment reporting under the "Foreign Exchange Transactions Act" and the "Foreign Investment Promotion Act" if it acquires a certain percentage of shares or is an investment for the purpose of management participation, and it is necessary to comply with the accurate reporting procedures accordingly. This investment reporting lays the legal foundation for foreign investors to smoothly carry out business activities in the country. Law firm Veat Foreign Exchange Reporting Center provided detailed instructions on the specific document preparation and reporting procedures required at each stage of the investment process. Furthermore, we helped foreign investors understand complex legal requirements and systematically prepare for everything needed. Furthermore, Law firm Veat Foreign Exchange Reporting Center provided detailed advice on factors that foreign investors should practically consider when making investments in the country, helping them comprehensively consider the legal environment when making investment decisions. Improved Foreign Investment System and Foreign Exchange Reporting through the Foreign Exchange Reporting Center Recently, the Financial Supervisory Service distributed a guide on the foreign investment system (23.12.14, Financial Supervisory Service Business Explanation) to announce a significant improvement in the accessibility of domestic investment for foreign investors. The abolition of the foreign investor registration system and the easing of the final investment details reporting obligation by the integrated account name have made it easier for foreign investors to access and invest in unlisted domestic companies. This news is positive not only for foreign investors but also for startups seeking foreign investment. According to the revised regulations, foreigners wishing to invest in domestically listed securities can invest without a prior registration process, improving the convenience of foreign securities transactions by improving the reporting cycle to once a month, expanding the types of transactions subject to post-reporting, etc. provides greater flexibility to foreign investors, and is expected to allow foreign investors to participate more actively in the domestic market and open up diverse investment opportunities for domestic companies. Therefore, when making investments in unlisted domestic companies, foreign investors should carefully check whether they have reporting obligations under the "Foreign Exchange Transactions Act" and the "Foreign Investment Promotion Act." These reporting obligations may vary depending on the type of investment, and it is important to accurately understand the reporting procedures through a legal professional with a deep understanding of foreign exchange reporting to minimize potential legal risks in the investment process. Law firm Veat provides a one-stop service of the Foreign Exchange Reporting Center, incorporating Law firm Veat's know-how, to solve complex foreign exchange reporting. Law firm Veat Foreign Exchange Reporting Center carefully reviews each case, including deciding on reporting, preparing necessary documents, and acting as a reporting agent, to ensure smooth foreign exchange reporting. This allows foreign investors to prevent unnecessary time and manpower consumption, and violations, and to make startup investments more effectively. If you would like to prevent legal issues that may arise in the process of foreign investors or attracting foreign investment, professional consultation through the Foreign Exchange Reporting Center of Law firm Veat is essential. If you have any questions regarding foreign investors' foreign exchange reporting and foreign exchange investment, please contact the Foreign Exchange Reporting Center of Law firm Veat to receive systematic and professional support. Thank you. Sincerely, Law firm Veat
Legality Review of Stock Options (Stock Options) Granted
Law firm Veat received a request from startup A ("hereinafter referred to as 'the client'") and thoroughly reviewed the legality of the donated stock purchase options. Law firm Veat's startup consulting team explained the differences between stock purchase options (stock options) under the "Special Measures Act for the Promotion of Venture Companies" (hereinafter referred to as the "Venture Companies Act") and the "Commercial Code," and the contents of the amended Venture Companies Act, and thoroughly analyzed whether the venture company complied with the legal procedures and requirements necessary when granting stock purchase options. When a venture company grants stock purchase options under the Venture Companies Act, it requires approval from the general meeting of shareholders, setting conditions for the stock purchase options, and notifying stakeholders. Law firm Veat's startup consulting team comprehensively reviewed whether the client properly implemented these procedures and whether the conditions for the stock purchase options were consistent with the Venture Companies Act and related legislation. Furthermore, it provided advice to confirm the legality of previously granted stock purchase options and to take additional measures if necessary. Accurate understanding and application of stock purchase options (stock options) under the amended Venture Companies Act is very important for venture companies. Proper stock purchase options are essential not only for rewarding and motivating employees but also for the company's legal stability and sustainable growth. The enforcement decree of the amended Venture Companies Act significantly expanded the eligible candidates for stock options to include those with more than 10 years of practical experience in the field required by the venture company, those who have obtained a doctoral degree, or those who have obtained a master's degree and have 4 years of practical experience, and those who have professional qualifications prescribed by law. However, there are differences between the Venture Companies Act and the Commercial Code regarding the granting and exercise standards for stock purchase options, so accurate design and compliance with procedures are necessary. Therefore, in the case of a venture company, it is important to comprehensively review the legal aspects and consult with a startup lawyer who understands the company's situation to establish granting and exercise standards for stock options. If you need legal assistance regarding the granting and exercise of stock options, please feel free to contact Law firm Veat. Thank you.
"Legal Review of Securities Acquisition Report Cases in the Process of Acquiring Exchangeable Bonds"
Law firm Veat provided professional legal advice regarding securities acquisition reporting related to the transfer of convertible bonds previously issued by an investor company to a Korean company concerning a non-resident corporate entity. Law firm Veat Foreign Exchange Reporting Center closely communicated with the client from the initial stage to meticulously analyze the transaction structure and examined in detail whether reporting was necessary at each stage of the transaction and whether there were any legal risks. Based on the review, Law firm Veat provided detailed advice regarding compliance requirements, including the Korea Bank securities acquisition reporting procedure, both domestically and internationally. Law firm Veat Foreign Exchange Reporting Center conducted a comprehensive and in-depth analysis of domestic laws and international financial regulations concerning transactions with non-resident corporate entities, supporting the client to minimize legal risks and successfully complete the transaction. What is Foreign Exchange Transaction Reporting and Overseas Investment Reporting? Foreign exchange transaction reporting is an important measure to comply with legal requirements in an environment where global business is expanding and to ensure transparency when international funds move. Such foreign exchange transaction reporting plays an important role in building credibility for companies in the international financial environment, and therefore it is detailed in the “Foreign Exchange Transactions Act,” requiring reporting and reporting under the “Foreign Exchange Transactions Act” when certain foreign exchange transactions and foreign exchange payments are made, and requiring strict adherence to the procedures prescribed by law. According to the “Foreign Exchange Transactions Act,” prior notification is generally required when a resident (including a corporation) or a non-resident (including a corporation) acquires shares. Such notifications are usually made in advance, and failure to notify can result in actions from relevant agencies later. It requires foreign exchange reporting in various situations, such as receiving investment from overseas or investing overseas, dealing with existing shareholders with foreigners (foreign corporations), and mergers and acquisitions (M&A) involving foreign corporations. Law firm Veat Foreign Exchange Reporting Center provides optimized legal advice to help clients conduct global business efficiently and safely, based on its abundant experience in various foreign exchange reporting tasks, such as securities acquisition reporting, securities issuance reporting, overseas direct investment reporting, and foreign investment reporting. Law firm Veat Foreign Exchange Reporting Center provides detailed guidance on whether notification is required, the notification procedure, and necessary documents in various situations where clients invest in or receive investment from foreign corporations or deal with existing shareholders. Compliance with the legal requirements and regulations of each country is increasingly important in an environment where global business is steadily increasing. Law firm Veat supports the smooth progress of complex “Foreign Exchange Transactions Act” related reporting procedures and helps achieve global business goals successfully. If you require professional advice on various foreign exchange transaction reporting, including non-resident securities acquisition reporting, please contact [Law firm Veat Foreign Exchange Reporting Center] and take the first step towards a successful global business. Thank you. Law firm Veat
[Law firm Veat TIP] Top 8 reasons to enter into a Usage License Agreement
A well-written usage license agreement clarifies the rights and conditions for the use of intellectual property, protecting the creator’s rights and reducing the potential for disputes between creators and users. In addition, usage license agreements play an important role for creators in establishing a transparent trading environment and securing commercial value. Therefore, usage license agreements are important in all situations involving the use or provision of intellectual property, and it is important to have a usage license agreement drafted through professional legal advice to ensure that all necessary items are included. What are the methods for a usage license (license) agreement valid worldwide and what precautions should be taken when using derivative works in relation to the creation of works related to NFTs? Regarding usage license issues in relation to NFT creation, it is very important. Generally, usage license agreements are only valid within a specified region for a specified period. However, in the case of NFTs, they can be sold and resold anywhere in the world, so a usage license that is valid permanently, both regionally and temporally, must be obtained. What should be noted when using derivative works? When utilizing derivative works, most websites offer royalty-free images and videos. In this case, the license conditions must be carefully checked. For example, commercial use may be prohibited, or attribution may be required. If attribution is required, the source must be recorded in the NFT or published metadata. What are the key items that should be included in a usage license agreement? A usage license agreement should include the following items: Licensed work, licensed product, contract region (here, ‘worldwide’ is appropriate), contract period, exclusivity, royalty rate, advance payment, minimum guarantee, and so on. All of these elements must be clearly stated in the agreement, providing important protection measures for both the rights holder and the creator. How can legal risks be minimized when creating NFT works? To minimize legal risks when creating NFT works, it is essential to accurately understand and comply with the license conditions. You must ensure that all necessary usage licenses have been secured, and that the contract terms are consistent with the manner in which the work will be used. In cases of uncertainty, it is advisable to seek advice from a legal professional. Law firm Veat’s TIP team is led by Seungjong Oh, Attorney, who previously served as Chairman of the Copyright Committee, and Sung-ho Choi, Representative Attorney, who has been selected as a ‘Leading Lawyer’ in the TMT field of Legal Times, and Il-woon Ahn, Partner Attorney, who is actively engaged as a community specialist of the Korean Copyright Committee, and Yong-hwan Jeon, Senior Attorney, who has abundant experience in ICT regulatory sandbox and empirical service legal consulting. The team consists of professionals with combined expertise and practical experience to solve complex copyright and intellectual property rights issues. The Veat TIP team is providing easily understandable legal knowledge essential for creating NFT works through the TIP team Copyright Legal Guide to minimize the legal risks of creators and protect their works. We will continue to introduce various copyright issues in the future, so please refer to them, and if you need professional legal consultation, please feel free to contact Law firm Veat. Thank you. Law firm Veat