Case Studies
Anil Moon Partner Attorney, contributed an article to Outstanding, regarding the status of virtual currency securities.
Law firm Veat’s An Il-won Partner Attorney has provided detailed explanations through the content that was contributed to the IT news media “Outstanding” regarding important issues in the virtual currency industry, specifically regarding the question of whether virtual currency securities exist. If virtual currency is an investment security, the virtual currency exchange that mediates the trading of that security may need to obtain the same financial license as a traditional stock exchange. What caused this issue to become a vigorous legal dispute? How did the US courts interpret it? How is it interpreted in Korea? It explained these in detail. However, in December 2020, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs. According to US securities law, anyone selling through an offering must register with the SEC in advance. This is the claim that Ripple, a virtual currency, is interpreted as a security, and Ripple Labs was illegally selling unregistered securities. If we can interpret Ripple as a security, it will first be subject to SEC regulations, just like other stocks or financial investment products, and then the same logic will apply to most other virtual currencies, leading to significant financial regulations. Source: Outstanding (https://outstanding.kr/) An Il-won Partner Attorney provides active advisory services on a wide range of ‘IT’ and ‘blockchain’ related matters based on a deep understanding of blockchain, and he has been appointed as a member of the Korea Bar Association’s IT Blockchain Special Committee, further enhancing his expertise in the ‘blockchain’ field. Law firm Veat provides in-depth blockchain legal advice, based on a broad understanding of the blockchain and NFT industries, enabling businesses to overcome the uncertainties of the blockchain business environment. If you need legal advice on virtual currency, blockchain, or a virtual currency securities review, such as a virtual currency securities review, please feel free to contact Law firm Veat at any time. Thank you. Law firm Veat Dream
The importance of reporting violations, expert review by the Foreign Exchange Transaction Center.
Law firm Veat specializes in the development and production of global luggage. A client, “Customer,” has a history of over 10 years of various overseas transactions, but has inadvertently failed to report the corresponding foreign exchange transactions. Therefore, the Veat Foreign Exchange Reporting Center initiated a comprehensive review and analysis of multiple overseas transactions over the past decade to conduct an accurate regulatory reporting. Veat Foreign Exchange Reporting Center approaches all details related to foreign exchange reporting with deep expertise. Accordingly, it conducts procedures to accurately identify the characteristics of each transaction and to take appropriate legal actions. Why must you undertake it if you have failed to report foreign exchange transactions? The Foreign Exchange Transactions Act is a key law that controls and regulates the overseas activities of domestic corporations and individuals. It provides a framework to ensure the legality of overseas activities alongside the regulation of domestic corporate activities. However, due to the complexity of foreign exchange transactions and the difficulties associated with reporting, many companies frequently fail to comply with reporting obligations. Therefore, companies are most important to review proactively because they are at risk of severe penalties from the Financial Supervisory Service. [Foreign Exchange Reporting Regulatory Reporting Cases] When a foreign affiliate acquired stock or capital contributions through foreign investment reporting, a reporting procedure as "Foreign Direct Investment Reporting Subject" to the foreign exchange bank is necessary (refer to Article 8(1)(3) of the Enforcement Decree of the Foreign Exchange Transactions Act), the potential for regulatory reporting is identified and the subsequent procedure is carried out. In relation to the liquidation and acquisition of shares by foreign shareholders in the process of a Korean company’s share restructuring and acquisition, the necessity of regulatory reporting related to foreign exchange transactions and past unregistered foreign exchange transactions was confirmed, and approximately 9 cases were handled through regulatory reporting and the corresponding foreign exchange reporting. Veat Foreign Exchange Reporting Center, providing support for the overseas transactions and activities of companies. Modern companies’ international activities are increasingly complex, and accordingly, compliance with relevant laws and regulations is becoming more important. In this complex environment, the need and importance of foreign exchange reporting are further emphasized. Therefore, the Veat Foreign Exchange Center provides professional services based on deep expertise and experience in this field. Veat Foreign Exchange Center accurately understands various transaction types and requirements, and conducts thorough reviews and analysis to prevent regulatory reporting. Furthermore, if regulatory reporting has occurred, it provides various approaches and strategies to resolve it, contributing to minimizing the legal risks of customers. Foreign exchange transactions involve complex regulations and procedures, and failure to comply may result in various legal problems related to regulatory reporting. The Veat Foreign Exchange Reporting Center understands these complex procedures and regulations and provides optimal services tailored to the relevant matters, supporting safe and efficient foreign exchange transactions. If you have any questions regarding regulatory reporting, foreign exchange transactions, please contact the Veat Foreign Investment Reporting Center. Thank you. Veat Law Firm
"User agreement and copyright contract, legal consulting services from the startup advisory team"
Law firm Veat reviewed legal risks that may arise during the import of alcoholic beverages from a domestic customer (“client”) by A Company, a foreign alcoholic beverage manufacturer, into Korea. The Law firm Veat Startup Advisory Team conducted a legal review to determine if the client’s import of alcoholic beverages from a foreign alcoholic beverage manufacturer was in violation of the Alcoholic Beverage License Act’s prohibition of rebates when a beverage manufacturer or seller provides money or receives it in relation to the transaction of alcoholic beverages. The Law firm Veat Startup Advisory Team meticulously analyzed the client’s transaction details to determine if it violated the Alcoholic Beverage License Act, and then provided detailed guidance to the client regarding the results. Considering the client’s services, the Startup Advisory Team recognized that label design copyright issues were important during alcoholic beverage imports, so they reviewed copyright permission agreement contracts with domestic artists and revised problems related to copyright assignment within the contract content to align with the purpose of the permission agreement. Utilization Agreement (License) – necessary for Startup’s Business Expansion and Partnerships For alcoholic beverage importers, one of the key legal matters to be particularly careful about is the Alcoholic Beverage License Act, which regulates various activities related to the manufacture and sale of alcoholic beverages. Therefore, importing foreign alcoholic beverages into Korea requires considering multiple legal issues. The Law firm Veat Startup Advisory Team possesses professional knowledge and experience in various areas of law, including the Alcoholic Beverage License Act. Especially, Utilization Agreement (License) related issues often emerge as important issues when startups or small and medium-sized enterprises expand their business or form partnerships. A Company reached a settlement agreement and a license agreement regarding copyright issues. However, the company later expressed its intention to assign the game business to a third party or to provide the service in a publishing manner. Therefore, the Law firm Veat Startup Advisory Team meticulously analyzed the existing agreement and Utilization Agreement (License), focusing on the possibility of transferring the license and the conditions for re-granting the license, and then provided comprehensive guidance to the client regarding the possibility of providing services for the transfer of the game service and the publishing manner. In-house Counsel – like the Law firm Veat Startup Advisory Team Law firm Veat provides professional advice on various legal risks that may arise when operating a business, and quickly and professionally resolves these issues like in-house counsel, helping the client’s business grow. If you need startup legal advice or regular legal advice, please contact Law firm Veat. Thank you. Law firm Veat
Law firm Veat signs a strategic business agreement with Next Challenge Foundation, a global accelerator foundation.
Law firm Veat collaborates with Global Accelerator Foundation Next Challenge> to focus on strategic agreements that provide legal support and foster the growth of startups. Under this agreement, Law firm Veat will cooperate with Next Challenge to reduce legal issues and risks for startups, and to provide post-investment management legal support for startups’ global growth and investment attraction. Representative Kim Youngrok of Next Challenge Foundation expressed expectations for the agreement, saying, “This agreement is expected to significantly contribute to the development of the Korean startup ecosystem and the nurturing of future entrepreneurs.” He added, “Through cooperation with Law firm Veat, which specializes in startups, startups will receive the support they need to grow in a stable environment.” Partner Attorney An Il-won of Law firm Veat also expressed a positive response to the agreement, saying, “It will generate great synergy in the growth and post-investment management of startups.” He expressed confidence that “Through the expertise and cooperation of both organizations, it will provide significant assistance in the growth of early-stage startups and the resolution of legal issues.” This strategic agreement is expected to serve as an important stepping stone for the growth of startups, and it is hoped that continued cooperation between Law firm Veat and Next Challenge will make the startup ecosystem even healthier and more active. Next Challenge Foundation is a global accelerator foundation leading the governance of the startup ecosystem by government and private sectors, focusing on strengthening the innovative startup talent ecosystem based on EdTech, and conducts various activities for the expansion of the domestic and international startup ecosystem and infrastructure. Law firm Veat has been providing legal counsel essential for the growth and global expansion of startups. This law firm, which achieved 2nd place in the Bloomberg League Tables in Q1 2023, centers on experts in areas such as IT specialists, lawyers from science and technology backgrounds, Privacy Committee legal advisors, and blockchain specialists from the Korean Bar Association Blockchain Committee, and is outstanding in investment and M&A, IT, privacy, and blockchain areas. Notably, Partner Attorney An Il-won of Law firm Veat, who participated in the agreement ceremony, is also active as a legal mentor in the K-ICT Startup Mentoring Center Legal Mentorship Team, and actively participates in various practical and diverse activities for startups, including legal consultations and seminars. Thank you. Law firm Veat Dream
Songdo Young Representative Attorney Participated in the "Self-Governing Industry-Academia-Research-Government Forum for the Formation of a Healthy Metaverse Ecosystem" hosted by the Ministry of Science and ICT.
Veat’s representative attorney Songdo-yeong participated in a ‘Forum for Establishing a Healthy Metaverse Ecosystem through Self-Regulation of Public-Private-University-Industry Collaboration’ hosted by the Ministry of Science and ICT (hereinafter “MSIT”) and presented a key agenda regarding self-regulatory implementation plans for the metaverse centered on the industry. On November 25th, a forum was held with major domestic and international metaverse platform companies such as NaverJet, SKT, KT, LGU Plus, Comptubeverse, Lotte Information & Communication, Meta, Roblox, hosted by MSIT. During the forum, representative attorney Songdo-yeong of Veat presented key details regarding self-regulatory implementation plans for the metaverse centered on the industry. Attorney Songdo-yeong provided a deep discussion for attendees regarding the self-regulatory promotion system, applicable areas, and securing effectiveness, providing an opportunity for participants to consider legal issues and solutions in the metaverse industry. The forum attendees discussed potential adverse effects during metaverse usage, unethical behavior regarding virtual identities, infringement of creator rights, and privacy breaches. They reached a consensus on the need for appropriate self-regulation and the companies’ responses to these issues. Veat plans to continuously provide legal support and advice for the healthy development of the metaverse industry. Attorney Songdo-yeong’s presentation once again emphasized the importance of establishing a self-regulatory system centered on private entities, and expressed a will to support the continued rooting of values such as metaverse ethical principles. Veat will always strive for the continued development and healthy ecosystem of the metaverse industry. Thank you. Veat Law Firm Dream.”
Investment lawyers will review the new business investment agreement for startups together.
Law firm Veat undertook legal review of the investment agreement necessary for a new business venture, commissioned by A Corporation (a manufacturer of capacitors), in response to the client’s request to enter a new business area. The client planned to enter a new business area and, in order to examine whether the existing investment agreement conflicted with it, requested Veat Law Firm’s Investment Focused Investment Advisory Team to review the investment agreement necessary for a new business venture. When a startup makes a major decision such as entering a new business or establishing a subsidiary, startups generally need ‘Investor Approval’ because unforeseen matters can arise in the early investment stage. Therefore, the investment agreement should clearly include discussions and agreements with investors. Complexity of New Business Venture and Importance of Investment Agreement The growth and evolution of startups are the core of changing business environments. This growth and change is underpinned by attracting investments, and in this process, the role of the investment agreement is extremely important. The investment agreement is the core document that defines the rights and obligations of investors and startups and their future direction. Veat Law Firm’s Investment Advisory Team deeply understands the complexity and importance of investment agreements, and provides professional advice by carefully reviewing the investor approval process and investment agreements needed when entering a new business venture. Safe New Business Venture with Veat Law Firm’s Investment Focused Advisory Team The Investment Advisory Team has provided advice to various clients including venture capital (VC) firms and startups related to investments, and there is a case where they provided legal review for the investor approval and drafting of contracts in the process of another client expanding their business. When Client A attempted to acquire a portion of the business of another company, the Investment Advisory Team drafted the business transfer agreement in detail, and in this process, they provided specific advice on detailed matters such as the specific content of the acquired business, financial assets, licenses, company vehicles, and the change of names, inheritance of contracts. Furthermore, considering the fact that there are many investors to the client, they provided advice on what aspects should be considered from a legal perspective such as investor approval. Law firm Veat recorded 2nd place in terms of total transaction count based on the Bloomberg Q1 2023 league table (ranking of M&A legal advisory) and was selected as ‘Finalist’ for ‘Korea Deal Firm’ for two consecutive years at ‘ALB Korea Award 2022’ which recognized their expertise and professionalism. If you want to prepare for a safe new business venture for the growth and change of startups, please contact Veat Law Firm - Business Growth Guardian. Thank you. Law firm Veat Dream
Software outsourcing and development agreement, medical information IT solution professional consulting.
Law firm Veat provided legal advice regarding IT solutions for A, a medical services development company (hereinafter referred to as “Client”). The Client commissioned the development of an IT solution from a medical institution. After completion of the development, an IT legal specialist within the IT specialized Law firm Veat was consulted regarding the ownership of the copyright of the solution and whether the firm possessed the right to sell the solution to other medical institutions. Law firm Veat’s IT Legal Advisory Team conducted a thorough analysis of the case, based on contracts and related documents with the medical institution, and provided detailed legal opinions regarding whether the client possessed the copyright of the solution and whether it possessed the right to sell it to other medical institutions. IT solutions and software development agreements require comprehensive expert review. Recently, the development of IT solutions in the healthcare sector has been rapidly increasing, and many development companies are struggling to determine how to execute software development contracts. Because IT solutions such as software have value as intellectual property, copyright arises. Particularly, in specialized solutions such as medical information IT solutions, which are designed for specific fields, if the solution can be used in various hospitals or medical institutions, it is crucial to clearly define the ownership of the software and the terms of its use. For the development company, it is important to use the know-how and source code, libraries developed for the initial healthcare solution at a low cost to further develop it for other medical institutions, but if the software development agreement does not include these points, there is a risk of copyright or trade secret disclosure, or issues with use. Ultimately, the development company needs to carefully consider many aspects such as the scope of software development, cost, and duration, and it is crucial to identify and respond to legal issues at the time of contract drafting. IT ‘technology’ and ‘law’ simultaneously understood IT Legal Advisory Team. Law firm Veat’s IT Legal Advisory Team has a case where it collaborated with online advertising platform A. Online advertising platform A commissioned a review of a subcontract agreement for outsourcing the development of some software. Law firm Veat’s IT Legal Advisory Team, based on its experience in drafting and reviewing various IT-related agreements, software outsourcing agreements, development agreements, and copyright issues for various clients, guided the Client to negotiate the appropriate direction in the situation where the opposing party wanted to discuss copyright issues and drafted and provided a contract from the Client's perspective, allowing the software to be used freely. Specifically, it technically analyzed the solution to identify and inform the client about potential legal risks that could arise in future business operations. To minimize legal risks when conducting software development contracts or outsourcing agreements for IT solutions, please contact Law firm Veat’s IT Legal Advisory Team. Thank you. Law firm Veat.
'ALB Korea Law Award 2023' Finalist Law firm Veat selected
Law firm Veat was recognized for its various specialized expertise and contributions at the ‘ALB Korea Law Award 2023’ as a finalist in the ‘Korea Deal Firm of the Year’, ‘Boutique Law Firm of the Year’, and ‘Managing Partner of the Year’ categories. Veat Law Firm was also recognized as a finalist at the ‘ALB Korea Law Award 2023’ in the ‘Korea Deal Firm of the Year’ and ‘Boutique Law Firm of the Year’ categories, and this year, Sung Ho Choi, Managing Partner, was selected. The ALB Korea Law Award, now in its 11th year, is a prestigious award sponsored by Thomson Reuters’ Asian Legal Business, and selects outstanding law firms and lawyers by evaluating them through the assessments of a panel of external experts consisting of 25-30 people in various fields. Korea Deal Firm of the Year Bae, Kim & Lee Kim & Chang Lee & Ko VEAT Law Firm Yoon & Yang Yulchon Boutique Law Firm of the Year InterLEX Kang & Partners Minwho Law Group Peter & Kim VEAT Law Firm Yoon & Lee International Patent & Law Firm Managing Partner of the Year (Sungho Choi) Dongwoo Seo - Bae, Kim & Lee John K.J. Kim - Ashurst Jong-Han Oh – Shin & Kim Kap-You Kim - Peter & Kim Kye Sung Chung - Kim & Chang Kyu Chul Lee - DR & AJU Seok Hoon Kang – Yulchon Sungho Choi – VEAT Law Firm 'ALB Korea Law Award 2023’ - Law firm Veat was recognized for its various specialized expertise and contributions at the ‘Korea Deal Firm of the Year’, ‘Boutique Law Firm of the Year’, and ‘Managing Partner of the Year’ categories as a finalist and we sincerely appreciate it and will continue to provide the best legal services through outstanding service and expertise. Thank you. Law firm Veat
Overseas Direct Investment Specialized Review, Veat Foreign Exchange Reporting Center
Law firm Veat undertook legal review of foreign direct investment reports on behalf of client A, a investment company (hereinafter “client”). Among legal issues related to foreign investment, foreign exchange transaction reporting is one of the business processes that possess both complexity and importance. Law firm Veat provided assistance in various companies’ reporting procedures based on its deep expertise in foreign exchange reporting. Law firm Veat reviewed investment ratios in detail and confirmed cases where foreign direct investment reports were needed. Based on this, it provided detailed guidance on various documents required for the reporting procedure, enabling client A to conduct its investment procedure quickly and smoothly. Furthermore, considering the protection of investors’ rights and interests as a priority, it conducted the drafting of convertible priority shares subscription agreements and shareholder agreements in a direction to minimize dilution of equity. It paid close attention to issues where priority common shares conversion was prohibited, reflecting the legal characteristics of specific countries. “A foreign exchange reporting center of Law firm Veat specializing in professionally analyzing complex reporting procedures and regulations such as the “Foreign Exchange Transactions Act” Foreign investment is one of the important elements that cannot be missing from a company’s growth strategy. However, various legal issues and issues that investors encounter when venturing abroad can be a major obstacle to the success of foreign investment. Law firm Veat’s foreign exchange reporting center helps effectively solve these problems and guides the way for the success of foreign direct investment. Law firm Veat undertook foreign exchange reporting on behalf of A, a virtual asset platform company, in a case where a parent company located abroad intended to transfer operating funds to its Korean subsidiary. This case demonstrates that the foreign exchange reporting center utilized its expertise by comprehensively reviewing “Foreign Exchange Transactions Act”’s complex reporting procedures and regulations to enable smooth transfers. “Consult with Veat Law Firm, an expert in foreign direct investment reporting.” As in the case of companies with parent companies abroad or companies that primarily handle international financial transactions, foreign exchange reporting is an important business. A precise and detailed reporting procedure in accordance with “Foreign Exchange Transactions Act” and foreign exchange transaction regulations requires professional knowledge and experience. Law firm Veat’s foreign exchange reporting center provides professional legal advice based on the review of domestic and international cases. Law firm Veat’s foreign exchange reporting center provides a one-stop service offering the entire process from identifying the types of cases requiring reporting to drafting and submitting actual reports, based on its expertise in “Foreign Exchange Transactions Act” and experience. Law firm Veat’s foreign exchange reporting center provides assistance from experienced foreign direct investment lawyers, covering the entire process from identifying the types of cases requiring reporting to drafting and submitting actual reports, based on its expertise in “Foreign Exchange Transactions Act” and experience. Thank you. Law firm Veat.
"Manufacturing startup growth platform, specializes in reviewing OEM product supply agreements."
Law firm Veat provides OEM product supply agreements drafted in response to a request from A Company (hereinafter “Client”), a leading manufacturer startup. Law firm Veat Startup Advisory Team has established provisions regarding minimum order quantities and deadlines to ensure contract stability, carefully reviewing the supply agreement. The Startup Advisory Team provides specialized advice for startups, drafting provisions to avoid customer liability for defects occurring after inspection and delays caused by the shipping company’s reasons. In particular, Law firm Veat Startup Advisory Team comprehensively reviewed and explained provisions relating to the “Act on Promotion of Competition and Fair Trade” (“Competition Act”) regarding pricing maintenance behaviors or restrictive contract behaviors concerning resale prices. Startup Advisory Team’s professional examination of anti-competition Act violations Pricing maintenance refers to an act in which a business engaged in producing or selling products mandates or recommends sales at a specific price to resellers. Such actions generally violate the principle of businesses determining their own prices at each stage of the transaction, so pricing maintenance can cause problems such as reduced efficiency of distribution organizations, restrictions on competition among manufacturers, and limited consumer choice. However, it is also recognized as an exception under specific circumstances and conditions. Law firm Veat Startup Advisory Team provides legal advice based on its deep understanding and professional expertise regarding violations of the “Competition Act” such as pricing maintenance behaviors, considering the characteristics of the client, and helping to minimize legal risks that may arise from contract drafting. When manufacturing companies grow through mutual cooperation, OEM supply agreements play a key role. An OEM agreement is a contract in which another company manufactures products that can be sold under its own brand name, so detailed legal review and drafting of the OEM agreement are necessary. Diverse business models and characteristics – Law firm Veat Startup Advisory Team Law firm Veat Startup Advisory Team provides legal advice considering the diverse business models and characteristics of startups. The Startup Advisory Team assisted in drafting a joint venture agreement for collaboration between clients and influencers, in which the client is responsible for all aspects of product production, distribution, and delivery under its own brand and all related rights are transferred to the client. Law firm Veat clearly defines the rights and obligations of both parties, the client and the influencer, and provides assistance to ensure smooth collaboration while benefiting the client. For a startup to take the next step, it is important to prepare a correctly drafted contract to establish a successful foundation. Law firm Veat Startup Advisory Team has been working with diverse startups and growing with them, providing specialized legal services based on its expertise in startup legal advice. If you need professional legal advice on OEM supply agreement drafting and review, as well as various other legal issues for stable business operations, please contact Law firm Veat. Thank you. Law firm Veat