Case Studies
[Consultation] Publishing Contract Termination Penalty and Progress Direction Legal Review
Law firm Veat received a referral from A, a supplier of publishing software, and conducted a legal review regarding penalties and future directions related to the termination of the publishing contract. A requested Law firm Veat to review the contract and case law regarding the costs A must pay if it proceeds with contract termination. Law firm Veat thoroughly reviewed the contract and confirmed that A’s termination reason did not correspond to the termination reason stipulated in the contract and that there was no statutory right of termination, and recommended termination through mutual agreement after analyzing the associated costs, including royalties already received and costs invested by the opposing party. Furthermore, when the opposing party proceeds with contract termination, it was advised that the opposing party would not be able to file a claim for damages since there were no grounds for termination. Publishing contracts require consideration of general contracts such as revenue sharing, renewal, termination, and compensation for damages, as well as intellectual property rights. Additionally, software publishing is more effective in addressing a company’s legal issues if it can simultaneously consider both law and software – we recommend consulting with a lawyer who understands both ‘IT’ and law to proceed with this. Law firm Veat provides specialized legal counsel to IT-focused corporate entities, including those specializing in software. If you require publishing or software IT legal advice, please contact Law firm Veat. Thank you. Law firm Veat
[Metaverse] Songdo-yeong Representative Attorney, Published Article on Legal Measures Regarding Promotion of the Metaverse Industry
Law firm Veat’s Partner Songdo-yeong has published an article in the “New Industry Regulation Review” published by the Korea Institute of Legal and Regulatory Studies on Metaverse Promotion Act related issues. The “New Industry Regulation Review” is a professional publication of the Korea Institute of Legal and Regulatory Studies that deals with the overall regulation policy and legal issues in the new industry field. This article, released under the theme of ‘Key content and future legislative tasks regarding the promotion of the Metaverse Industry Act,’ addressed the issues of the Metaverse Industry Act in response to the reality of increasing interest in the Metaverse due to the shift to a contactless society caused by COVID-19, and necessary to promote new technology based industries. In this article released, Partner Songdo-yeong provided a professional perspective, comprehensively analyzing the Metaverse Industry Act in terms of ‘Key content of the Metaverse Industry Act, key legislative points, and future tasks.’ Please refer to the related materials below, and if you need legal advice regarding the Metaverse, please contact Law firm Veat at any time. [Focus]Key content and future legislative tasks regarding the Metaverse Industry Act/Songdo-yeong Thank you.
[Consultation] Review of Legal Issues Regarding Qualifying Stock Purchase Options
Law firm Veat took on a request from A, a mobile IT venture company, and conducted legal review regarding inquiries about restricted stock purchase options. Law firm Veat meticulously reviewed the basis clauses for stock purchase options for employees and thoroughly examined the requirements for restricted stock purchase rights. Furthermore, we examined whether all legitimate procedures that must be conducted by the company, such as shareholder meetings and board of directors meetings, were fully carried out, and provided legal review opinions regarding whether each employee had a restricted purchase option. Specifically, we informed you that if a shareholder meeting was held in accordance with the “Special Act on Promotion of Venture Companies” and failed to include items that must be established by law when granting stock purchase rights, it became a non-existence requirement and was therefore void. A restricted stock purchase option refers to a tax special privilege system that allows you not to be taxed on the difference between the market price per share and the exercise price if you meet certain requirements when granting stock purchase options under the “Special Act on Promotion of Venture Companies.” A restricted stock purchase option is addressed in the “Companies Act,” “Tax Special Privilege Act,” and “Special Act on Promotion of Venture Companies,” and it is recommended to proceed with experienced attorneys considering various laws and internal regulations. Law firm Veat provides legal advisory services to startups and various companies, similar to an in-house attorney, quickly and efficiently based on our experience of advising companies on various legal matters. If you need legal advice on restricted stock purchase options or corporate legal matters, please contact Law firm Veat. Thank you. Law firm Veat
[Legal advice provided regarding the transfer of LP status]
Law firm Veat accepted a referral from private equity company A’s request for legal advice regarding the transfer of Limited Partner (LP) funds. Law firm Veat provided comprehensive guidance on all related changes, including submitting reports to the Financial Supervisory Service and amending the company’s articles of incorporation when A’s LP status is transferred, and provided legal opinions regarding the need for merger notification. Specifically, Law firm Veat advised on whether the transfer of LP status would conflict with existing restrictions for stakeholders in the invested company. A Limited Partner (LP) is an investor who entrusts capital as a Limited Partner, and bears liability up to the amount of capital contributed. The LP has the right to review accounting documents and performs management audits to ensure that the capital entrusted is properly utilized. The LP is governed by regulations such as the “Act on Capital Markets and Investment Securities,” and the “Act on Fair Trade and Competition” regulates acts that, through the transfer of all or a major part of its business, actually restrict competition in a certain business area. Therefore, a detailed legal review is necessary to ensure compliance with the “Act on Capital Markets and Investment Securities” and the “Act on Fair Trade and Competition.” Law firm Veat, which holds the 4th position in the 2021 annual Bloomberg M&A league table based on the total transaction count, specializes in M&A and provides legal consultation and advisory services to various corporate clients. Thank you. Law firm Veat.
Songdo Young Representative Lawyer, conducted presentations related to smart tourism technology development and policy/law/regulation.
Veat’s Songdo-yeong Representative Attorney participated in the 2022 Kyung Hee University School of Hotel and Tourism Management Academic Symposium, discussing policy/law and regulation related to smart tourism technology development. This symposium was co-hosted by the Korean Tourism Research Society, the Korean Information Law Society, and the Smart Tourism Research Institute, under the leadership of the Korean Tourism Research Society. It was sponsored by the Ministry of Culture, Sports and Tourism, the Korea Research Fund BK21four Project Team, and the SSK Large-Scale Research Center. The symposium was held in three parts: ‘Digital Transformation Legal Issues,’ ‘The Arrival of the Metaverse and Public Data Related to Tourism Legal Issues,’ and ‘Smart Tourism Issues.’ During this symposium, Songdo-yeong Representative Attorney presented on the topic of smart technology and regulatory sandboxes in the ‘Digital Transformation Legal Issues’ session. Law Firm Veat’s Songdo-yeong Representative Attorney provides a wide range of legal advice based on a deep understanding of smart technology, ICT, and experience with the nation’s most extensive track record of regulatory sandbox-related work. Thank you. Law Firm Veat
[Consultation] Drafting a Joint Business Agreement with an Influencer
Pet product sales company A has found Law firm Veat after requesting a joint business agreement draft. Law firm Veat provided a joint business agreement in a way that divides roles between clients and influencers, privately branding pet products for the client and influencer, covering product creation, distribution, sales, and delivery, as well as copyright-related rights. Law firm Veat drafted the agreement to ensure that the client company’s self-branded products would have all related rights, including copyright, and clearly reflected in the agreement a condition where the influencer receives a certain percentage of total sales. Joint business agreements play an important role in discussing and defining roles before jointly conducting a business and preventing future disputes. Therefore, even if the parties have already agreed on the content, it’s necessary to explicitly record the agreed-upon content in the agreement and have legal experts review it to ensure it doesn’t violate any legal provisions. Law firm Veat is providing broad advice on general corporate legal affairs, including the drafting of joint business agreements with influencers, and is offering efficient legal advice based on experience reviewing various cases. If you need legal advice on drafting joint business agreements with influencers or need assistance with general corporate legal affairs, please contact Law firm Veat at https://pf.kakao.com/_VBmxdxb/chat. Thank you. Law firm Veat
[Personal Information Protection Training] Law Firm Veat, Baek Seung-cheol Partner Attorney, Personal Information Protection Training Course for Employees of Healthcare A Corp.
Recently, as the importance of personal information protection and related education has been increasing in response to recent cases of personal information leaks from businesses, at the request of 헬스케어A, Partner Byun Seung-cheol of Law firm Veat conducted a personal information education program for the company’s employees. This personal information protection education, conducted by 헬스케어A, was carried out in response to the increasing trend of personal information leaks from businesses. Based on actual cases, such as ransomware, which illegally steals and sells personal information, the lecture emphasized the importance of personal information protection, providing a valuable opportunity for 헬스케어A’s employees to recognize the protection of their personal information. Partner Byun Seung-cheol passionately lectured, aiming to help the company gain awareness and included procedures for responding to malicious emails, and it became a crucial opportunity for 헬스케어A’s employees to reconsider how the company manages its information. Partner Byun Seung-cheol of Law firm Veat, based on extensive practical experience handling actual cases of personal information leaks and trade secret leaks, is actively involved as a member of the Personal Information Protection Committee and the Personal Information Protection Advisory Committee of the Korean Bar Association. Specifically, Law firm Veat’s personal information protection team, including Partner Byun Seung-cheol, efficiently provided opinions in response to inquiries from various companies regarding the company’s personal information protection challenges and key points, drawing upon a wealth of experience. Thank you.
[ICT Regulatory Sandbox] Songdo-yeong Representative Attorney, Conducts Explanation Session on the New Digital Innovation ICT Regulatory Sandbox.
Law firm Veat hosted an explanation meeting in July concerning the ICT regulatory sandbox that was held. At the explanation meeting for the ICT Regulatory Sandbox 2022, held by the Information and Communications Industry Promotion Agency, Law firm Veat conducted explanations to corporate representatives, associations, organizations, and related agency personnel regarding key regulatory issues within the ICT Regulatory Sandbox designated case types. The firm provided in-depth explanations, from basic theoretical explanations of the regulatory sandbox to practical guidance on how to prepare application documents for special cases, and the active participation of attendees gave a glimpse of their enthusiasm. Law firm Veat’s representative attorney, Songdo-yeong, has performed ICT Convergence Regulatory Improvement Consulting, ICT Regulatory Sandbox Counseling Center Legal Consulting Project, etc., and based on this practical experience, he is conducting lectures regarding the ICT Regulatory Sandbox. Furthermore, Law firm Veat, in cooperation with Korea Startup Forum, operated an ICT Regulatory Sandbox Counseling Booth, providing professional opinions to allow companies to grow by receiving many inquiries about the ICT Regulatory Sandbox on site. Thank you.
[Consultation] Review of Investment Contracts for Pre A Series Investment Company
Law firm Veat received a referral from a company receiving a Series A funding round and conducted legal review of the investment agreement. Law firm Veat meticulously reviewed the investment agreement from the perspective of the company receiving the investment. Law firm Veat provided legal review opinions regarding provisions that could be disadvantageous to companies generally, such as consent and negotiation clauses, provisions related to new shares, and stock purchase rights/penalties. Furthermore, while most clauses in the investment agreement were largely adopted from standard contracts distributed by the Small and Medium Business Finance Corporation and the Venture Capital Association, most of the clauses were drafted neutrally, and contained elements unfavorable to the company, so it was comprehensively reviewed to maximize benefits for the client. In particular, we advised the client to revise or delete provisions that were disadvantageous to the client, even if they were not included in the Term-sheet. In the case of investment agreements, even within the same round, the content differs greatly among investment firms, and can influence the next stage of execution, so it is advisable to consult with a lawyer who has expertise in drafting and executing investment agreements at the initial stage of the business, and to prepare for the next stage of execution in the future. Law firm Veat achieved 4th place in the 2021 Bloomberg League Table based on transaction volume, and Law firm Veat provided legal advice on over 99 investment and M&A transactions during 2021. Notably, it successfully executed large deals exceeding 100 billion won, demonstrating its trust and expertise. Thank you. Law firm Veat Dream
[Consultation] Review of Legal Requirements for Acquisition and Registration by Online Investment Participants]
Law firm Veat undertook legal review related to the acquisition and registration of online investment companies upon the request of online investment financial brokerage firm A. Law firm Veat first, analyzed the relevant regulations comprehensively in relation to the online investment company acquisition under the “Act on Online Investment Linked Financial Business and Protection of Investors,” to determine whether the online investment company registration was maintained. Based on this, it provided an opinion on whether it should proceed with changed registration. Furthermore, when acquiring an online investment company, it outlined the conditions required of the controlling shareholder if it became a controlling shareholder. Notably, Law firm Veat actively inquired to the financial authorities, investigating whether there were any examples of online investment companies being acquired, and that in the case of acquiring an online investment company, an assessment is made based not only on the regulations but also on other criteria, considering the circumstances of the acquiring company and the acquired company. Law firm Veat also inquired about the possibility of direct online investment company registration, and based on the relevant regulations such as the “Act on Capital Markets and Financial Investment Business,” it provided a legal opinion on the possibility of online investment registration by carefully legal review of the customer’s current main business to determine if it is a business covered by regulations. According to the “Act on Online Investment Linked Financial Business and Protection of Investors,” the business that an online investment company can undertake is limited to online investment, linked investment business, assignment and assignment of principal and interest receivables business, business of evaluating the credit status of borrowers and providing the results to investors, management and collection of linked loan receivables, development of credit rating models for evaluating the credit status of borrowers, etc. The online investment company is subject to comprehensive assessment by the Financial Supervisory Service and the Financial Supervisory Committee, considering diverse regulations such as the “Act on Capital Markets and Financial Investment Business,” which is difficult for general companies to access, and requires expertise and analysis abilities regarding the “Act on Online Investment Linked Financial Business and Protection of Investors.” Therefore, it is recommended to consult with experienced lawyers to efficiently and accurately proceed with the necessary procedures. Law firm Veat provides practical advice based on experience providing advice to various financial institutions, and offers advice based on its extensive knowledge regarding the “Act on Online Investment Linked Financial Business and Protection of Investors.” If you need legal advice on the “Act on Online Investment Linked Financial Business and Protection of Investors,” online investment company, or online investment business, please contact Law firm Veat. Thank you. Law firm Veat