Case Studies
[Consultation] Drafting of shareholder approval documents and profit-guarantee agreements related to corporate restructuring and legal review.
Law firm Veat was commissioned by company A, a provider of IP services, to draft shareholder resolutions and profit security agreements related to the conversion of Veat to a subsidiary company. Company A desired to change Veat to a subsidiary. Law firm Veat drafted shareholder resolutions containing the agreement that the shareholders of the subsidiary would approve the sale of the subsidiary’s stake in Veat to the parent company, changing the corporate structure. In particular, the parent company provided an opinion reviewing the legal requirements for special resolutions as stipulated in laws such as the “Companies Act” in the event that the parent company disposes of all the shares of the subsidiary. Law firm Veat, considering the position of the subsidiary that operated a fund through Veat, drafted a profit security agreement to ensure that the subsidiary could secure the profit it expected at the time of fund liquidation if Veat was changed to a subsidiary. Given that changes in corporate governance can have a significant impact on control and disputes may arise if shareholders cannot reach an agreement, we recommend consulting with an attorney with extensive and effective experience in corporate advisory to proceed safely. Law firm Veat, based on its experience providing legal advice to numerous companies as a senior/advisor attorney and its extensive legal review of many cases related to companies, is providing legal advice necessary for management, and assisting in narrowing the differences of opinion between shareholders. If you need assistance with the drafting of shareholder resolutions and profit security agreements or need a regular legal advisory service, please contact Law firm Veat. Thank you. Law firm Veat
[Legal Times] A law firm favored by internal lawyers: "Law firm Veat"
Law firm Veat was introduced as the “Law firm preferred by internal lawyers” in Legal Times, a leading legal professional magazine of South Korea. Legal Times stated that no index is as meaningful as the opinion of internal lawyers when assessing the competitiveness of law firms performing corporate legal affairs, and conducted a survey asking internal lawyers working in corporations about the preference for law firms. In that survey, Law firm Veat was highly evaluated for “providing swift and practical advice on small M&A and virtual asset-related fields based on Veat’s unique experience.” Law firm Veat provides swift and professional legal advice based on Veat’s unique experience while conducting numerous small M&A transactions, and it offers legal advice to help businesses operate stably by overcoming the uncertainties of the virtual asset industry even in the virtual asset-related field. Check related article : [Special Report] The law firm preferred by internal lawyers is Thank you. Law firm Veat.
[Consultation] Legal review of changes to the terms of use to comply with the Electronic Commerce Act and liability clauses.
Law firm Veat received a request from Company A, a data solution enterprise, and, in accordance with the “Consumer Protection Act on Transactions Etc.,” added provisions that must be included on the website after legal review. Law firm Veat modified provisions regarding contracts to ensure that contracts containing unfairly unfavorable terms for clients could be voided, and also modified provisions for individual notifications to members. Notably, regarding changes to service content, in cases where it was anticipated to have a major or negative impact on members, we provided detailed guidance on provisions requiring individual notification for a period exceeding that prescribed by the relevant laws. We also verified that Company A intends to provide services for a fee and added provisions relating to the cancellation of orders and the effects of cancellation, as well as established criteria for the firm’s sanctions in the event of a member’s violation of prohibited conduct. Furthermore, we added provisions to allow the firm to provide members with an opportunity to appeal or request correction before implementing sanctions. When drafting the terms and conditions for the services provided – particularly when it was the first time creating the terms and conditions – it is necessary to carefully review them. At this time, for service content and for paid services, it is important to verify that there are no errors regarding payment methods, payment methods, and refund policies, and it is preferable to consult with experienced lawyers who have experience with user agreements to adapt them to the firm’s circumstances rather than relying solely on standard user agreements used in the same industry. Furthermore, it is advisable to consult with legal professionals if one party intends to include terms that are advantageous or disadvantageous. Law firm Veat, based on its unique experience providing advice to numerous IT companies, assists clients by reflecting the characteristics of their businesses and ensuring compliance with relevant laws such as the “Act on the Regulation of Contracts.” If you need assistance with the drafting and legal review of user agreements, please contact Law firm Veat. Thank you. Law firm Veat.
[Consultation] Platform supply agreement legal review
Law firm Veat conducted legal review of platform contracts for the usage of platform sellers (suppliers) upon receiving a referral from data-based platform startup A. Law firm Veat reviewed clauses that could become invalid due to being unfairly disadvantageous or unpredictable based on “Act on the Consumer Protection in Fair Transactions” and revised or deleted their specific contents to provide to clients. Notably, we thoroughly reviewed aspects related to “cancellation of commitment, off-site transactions, and copyright” considering the business model and provided legal opinions regarding potential violations of the “Electronic Financial Transactions Act” and corresponding response measures. Furthermore, Law firm Veat conducted additional legal review concerning the liability limitations of tele-sales operators and proposed appropriate methods. The Fair Trade Commission stated that changes to price and service terms should be clearly communicated or agreed upon with clients, as unilaterally applying them unfairly would be considered unfair. In the case of seller and platform usage contracts, it is difficult for startups to thoroughly examine whether they conflict with relevant laws or if there are unfavorable aspects from the seller’s perspective. Law firm Veat provides legal ‘consultation/advisory’ services to various startups, and based on diverse platform services and experience in drafting usage agreements, we meticulously examine whether our agreements comply with relevant regulations and provide insight into which items could be positively impacted by additional regulation. Thank you. Law firm Veat
[ICT Regulatory Sandbox] 2022 Institute Explanation Session Notice
The Korea Information & Communications Industry Promotion Agency will hold an explanation meeting for company representatives, industry association representatives, and related institution representatives who are interested in the ICT Regulatory Sandbox. The meeting will serve as the starting point for new digital innovation. Veat Law Firm will provide detailed guidance on various types of ICT Regulatory Sandbox designation cases, and will operate an ICT Regulatory Sandbox consultation booth together with Korea Startup Forum, directly communicating and assisting with inquiries regarding the ICT Regulatory Sandbox system on-site. If you would like to attend the ICT Regulatory Sandbox 2022 Explanation Meeting, please pre-register using the QR code below. Thank you. ▶ Date: December 15, 2022 (Thursday) 2:00 PM - 4:00 PM ▶ Location: B1 Floor, Event Hall, Maru180, Yeoksam-ro, Gangnam-gu, Seoul ▶ Contact: ICT Regulatory Sandbox Consultation Center (043-931-1000/sandbox@nipa.kr)
[Consultation] Legal review of the limit of granting stock options (stock options).
Law firm Veat was commissioned to conduct a legal review regarding the limits of stock options (veat). Law firm Veat comprehensively reviewed whether, when granting new stock options, the limits of stock options stipulated in the articles of association should be included and calculated, and provided legal opinions regarding whether amendments to the articles of association were necessary. Furthermore, Law firm Veat, when reviewing investment contracts, checked for potential violations of the contracts due to the new grant amounts and provided detailed guidance on the risks, and, depending on whether changes to the investment contracts were needed, proposed appropriate change methods. Stock options (veat) are rights granted to company employees, especially talented individuals in startups, allowing them to purchase their own shares at a specified price within a certain period. The basic condition for receiving stock options is company employees, and the amount granted can be determined by laws, specifically Article 340/2 of the Commercial Code, limiting general companies to exceeding 10% of the total number of issued shares. Stock options (veat) can be useful for companies that grant rights based on the potential future growth of the company to talented individuals, even if they currently do not have sufficient financial resources. When considering stock options, it is recommended to seek assistance from experienced lawyers to consider a complex set of factors, including the Commercial Code, the Special Act on the Promotion of Venture Companies, and the company's articles of association. Law firm Veat provides efficient legal advice to ensure compliance with relevant laws, such as the Commercial Code, based on its experience advising various companies on the grant and exercise of stock options (veat). If you need legal advice on stock options (veat), please contact Law firm Veat. Thank you. Law firm Veat.
[Legal Review] Blockchain Network Validator Participation Agreement
Law firm Veat undertook legal review of contracts to participate as a blockchain network validator for A사의 entertainment platform. Law firm Veat considered the characteristics of the network to be participated in and surrounding contractual matters, examining the relationship with other validators, the rights and obligations of the participating validator, and potential problems that may arise during validator operation. It provided detailed opinions and reviewed clauses to add to the contract to prevent them. In particular, we confirmed the point where some of the validator’s work could be sub-contracted to a third party, clarifying the responsibility when issues arise from the sub-contracted work, and added provisions regarding countermeasures. In addition, we corrected inaccuracies in the technical specifications included in the contract. A node can be considered a participant in a blockchain network, and a validator means a person who operates nodes on a blockchain network and contributes to the management and maintenance of the entire network. Validators receive rewards upon successfully completing the validation process, and may face penalties if validation is not performed correctly. Due to the possibility of receiving no rewards if a validator performs an action that harms the network it is important to discuss this in detail with a legal expert and prepare thorough countermeasures. Law firm Veat is a law firm composed of engineers with IT expertise and provides legal advice on blockchain technology and virtual assets based on blockchain technology, such as Bitcoin, based on its experience providing clear legal advice in the uncertain blockchain service industry. If you have any questions regarding blockchain services, such as validators, blockchain-based NFTs, or Bitcoin, or require legal advice on virtual assets based on blockchain technology, please contact Law firm Veat. Thank you. Law firm Veat
[Consultation] Review of legal documents for stock transfer agreements and shareholder agreements.
Law Firm Veat worked on behalf of Company A, a company that ships overseas products, drafting stock transfer agreements and shareholder agreements. Company A requested legal advice to acquire the shares of its overseas subsidiary (stock transfer) and become a shareholder owning a majority stake. They needed a stock transfer agreement with the seller and a shareholder agreement guaranteeing their shareholder rights. Law Firm Veat addressed this by outlining all the details, including restrictions on the seller’s continued business operations (non-compete obligation), employment obligations for a certain period, and penalties for breach of contract, to ensure there were no future issues. Stock transfer is a type of merger and acquisition. Law Firm Veat holds the 4th position in M&A league tables based on transaction volume, ranking in the top tier for four consecutive years. Law Firm Veat provides specialized legal advice for M&A transactions. If you need a stock transfer agreement and shareholder agreement drafted, or require legal advice, please contact Law Firm Veat at any time. Thank you. Law Firm Veat
[Legal advisory provided regarding the Series A investment attraction related to Content Technology’s content IP specialist company]
Law firm Veat provides legal advisory services to ContentsIP specialized company Contents Technology in the process of raising a Series A (Series A) investment of 485 billion won, which was required when ContentsIP specialized company Contents Technology secured it. Through Series A, Contents Technology was able to successfully attract new investments of tens of billions of won through MavenGrowth Partners, SV Investment, etc. Highly evaluating Contents Technology’s unique capabilities of connecting IP and companies, building strategic partnership relationships with various music IP management companies such as Beyond Music, etc., despite the global economic downturn freezing investments. Law firm Veat provided professional legal advisory services, including reviewing and drafting investment contracts, which were necessary for the successful investment attraction process in which Contents Technology attracted investments from new investors such as E&I Investment, Shinhan Venture Investment, Com2us, Kreet Venture - Knet Investment Partners, Hana Bank, Dreamus Company, Alpha Asset Management, IAM and KB Investment, P&I Investment, SpringCamp, etc., and also provided legal advisory services considering future stable Series investment attraction, including the above investment attraction. Law firm Veat was selected as a Finalist in the Korea Deal Firm category for two consecutive years at the ‘ALB Korea Law Award 2022’, recognizing the investment expertise. Moving forward, Law firm Veat will be a key partner for startups, based on various legal advisory cases related to investment. Related article IP Strength Proofing… Contents Technology, 485 billion won investment maintenance Thank you. Law firm Veat Dream
[Consultation] Legal review of Terms of Use related to Refund Regulations
Law firm Veat conducted a legal review based on a commission from A, a supplier of system software development and supply. Law firm Veat reviewed A’s compliance with Article 3 Paragraph 1 of the “Act on Protection of Consumers in Electronic Transactions and Others” to determine if the company was subject to the law. While the “Act on Protection of Consumers in Electronic Transactions and Others” does not apply to ‘items purchased with the purpose of carrying out a business,’ it applies when a business actually trades in a position similar to a consumer under similar conditions with other consumers. We confirmed this and reviewed the customer’s applicability of the electronic commerce law. Next, we examined whether the company’s service was subject to Article 17 Paragraph 2 of the “Act on Protection of Consumers in Electronic Transactions and Others,” which defines ‘goods and services for which cancellation of offer is impossible.’ We then considered possible methods for allowing cancellation of offer. When the cancellation period is limited, it conflicts with existing terms and conditions, so amendments to the terms and conditions are necessary to allow for a cancellation period. We confirmed the need for terms and conditions amendment and discussed the details accordingly. Because electronic commerce laws differ from general civil and criminal law and have different interpretation standards, even vague wording in documents can lead to legal issues. Therefore, it is necessary to select a law firm that is well-versed in and has experience with these laws. Law firm Veat prepares customized terms and conditions for each customer based on applicable laws, after carefully understanding the services of various clients. If you need legal advice on terms and conditions, including the “Act on Protection of Consumers in Electronic Transactions and Others” and the “Act on Regulation of Contracts,” please contact Law firm Veat at any time. Thank you. Law firm Veat