Case Studies
[Consultation] Review of legal documents for virtual asset purchase agreements
Law firm Veat conducted legal review of virtual asset sales agreements based on a request from A, a blockchain company. First, the legal review was conducted in a direction that was most favorable to the buyer. To prepare for cases where the issuer of the virtual asset goes out of business and the virtual asset is not listed on an exchange, we modified clauses and statements, adjusted the scope of coverage, and revised wording concerning losses that could be interpreted as fraudulent inducement, considering the buyer’s perspective. Given that both parties are foreign, we assessed the situation as having a low probability of the relevant jurisdiction being the Korean legal system, and suggested mediation through the Korea International Arbitration Center as a dispute resolution method. News is coming that a company is entering the NFT market, and NFTs are emerging as an investment product that various companies are paying attention to. Consequently, inquiries regarding related sales and investment contracts are being made through Law firm Veat. In relation to virtual asset transactions, there are risk factors that can occur during the transaction, such as relying on a used Bitcoin that does not circulate, so it is important to receive advice from legal professionals who can consider high understanding and legal aspects concerning blockchain business, including Bitcoin and virtual assets. Law firm Veat helps ensure compliance with related laws such as the “Act on Reporting and Use of Financial Transaction Information” and the “Act on the Capital Market and Financial Investment” based on understanding of Bitcoin, blockchain, and cryptocurrency in relation to virtual asset investment contracts. If you need legal review regarding virtual asset sales agreements, the securities status of NFTs and tokens, and whether you are a virtual asset business operator, please contact Law firm Veat anytime. Thank you. Law firm Veat
[Legal Advice] Review of Legal Matters Regarding Whether a Virtual Asset Business is Subject to the Act on the Protection of Financial Information
Law firm Veat conducted a legal review to determine whether Company A, a blockchain service company,’s request regarding the virtual asset low-cost trading route guidance service meets the requirements of a virtual asset business operator under the “Act on Reporting and Use of Specific Financial Transaction Information.” Regarding the client’s service, while it claims to use a decentralized approach, it involves the management team mediating or facilitating the sale or exchange of virtual assets and receiving transaction fees, which could potentially qualify it as a virtual asset business operator under the definition clause of the “Act on Reporting and Use of Specific Financial Transaction Information.” We provided partial guidance regarding the outcome. Furthermore, in order for the client to reduce regulatory risks from the Korean Financial Supervisory Service, the management team should only receive development costs instead of platform transaction fees, minimize the management team’s governance token equity ratio, and transfer decision-making authority to a DAO, and also transfer platform administrator keys and platform management authority to the DAO, considering the need to take decentralized measures. We provided the content reviewed. In addition, it is also important to determine whether the virtual asset investment service is a virtual asset business operator reporting target, but it is difficult for the company to clearly understand whether it meets the guidelines provided by relevant institutions; therefore, we recommend consulting with experienced lawyers who have extensive experience in legal advice regarding various laws to ensure that it does not fall under the “Act on Reporting and Use of Specific Financial Transaction Information” and to avoid risks to the company’s growth. Law firm Veat has experience providing legal advice to numerous virtual assets and blockchain service companies, and has expertise in virtual asset services, NFTs, Bitcoin, and blockchain businesses, and provides legal advice. If you have questions regarding whether a virtual asset business operator applies to your company or if you need legal advice on NFTs, Bitcoin, or other cryptocurrencies, please contact Law firm Veat. Thank you. Law firm Veat.
[Legal advice] Providing legal advice related to the large-scale investment raising of the startup ‘Oder’s tablet order platform service.
Law firm Veat conducted a thorough review of investment agreements to examine the investment contracts undertaken by Veat in response to the tablet order platform service, Toader, which was recognized with a corporate value of 100 billion won or more. The tablet order platform service startup, Toader, successfully attracted new investments worth 10 billion won or more, having been recognized by LB Investment with a corporate value of 100 billion won or more. Despite the recent global economic downturn and the resulting contraction of domestic startup investments, Veat has been recognized for its stable cloud-based technology and services, and its ability to introduce services across various industries, including F&B, based on its position as the leading service in Korea. Law firm Veat has been recognized for its unique expertise in investment legal advice, having been selected as a Finalist in the Korea Deal Firm category at the ‘ALB Korea Law Award 2022’. Law firm Veat will continue to provide its experience and know-how, built through various investment legal advice, in order to contribute to the growth of startups! Related article (Toader, a large-scale investment raise with a corporate value of 100 billion won or more) Thank you. Law firm Veat
[Legal Times] Law firm Veat, 'Leading M&A Advisory'…A Strong Player in Startup Advisory
Law firm Veat has been selected as one of the Legal Times 2022 Best Law Firms in Korea. Legal Times noted that Law firm Veat advised on 54 M&A transactions in the cumulative Q3 M&A league table compiled by Bloomberg, ranking 5th based on the number of transactions, and highlighted that it participated in a greater number of deals compared to more established large law firms. Since its establishment in 2015, Law firm Veat, led by partners Choi Seong-ho, who graduated from Seoul National University's Department of Computer Science, and Song Do-young, who passed the 48th Judicial Examination after graduating from Korea University Law School, has built a solid team of 15 lawyers and is currently a leading boutique law firm. In addition, Law firm Veat has established the Foreign Investment Reporting Center, offering a one-stop service for foreign exchange reporting, related documents, and M&A transactions involving foreign investors, and recently launched the TIP (Technology · Intellectual Property) team led by partner Oh Seung-jong, a specialist in copyright law, to strengthen legal services in the intellectual property field. For more detailed information, please refer to the original article, and please contact Law firm Veat with any inquiries or for an interview. - [2022 Best Law Firms in Korea] Law firm Veat, ‘M&A advisory top tier’…Startup advisor strong Thank you. Law firm Veat Regards
[Legal Consultation] Review of Terms and Conditions of New Services and Personal Information Processing Policy
Law firm Veat was commissioned by a secondary market trading platform company, A, and drafted terms and conditions based on its obligations as a business operator for telemarketing and brokerage, focusing on the mandatory disclosure of obligations. Law firm Veat first reviewed whether the location-based service applied and, as providing services using location is considered a location-based service under relevant laws, and explained in detail that to operate such a business, it must be registered and the location-based service terms and conditions must be drafted and published. Furthermore, Law firm Veat provided guidance on whether the electronic payment agent business applied. At this time, after the company received settlement from the PG company for the consumer’s payment, and then settled it to the seller, this falls under a secondary PG business, so it explained the necessity of obtaining a PG registration under the Electronic Financial Transaction Act and provided advice on the feasibility and necessity of PG registration regarding the settlement and payment structure of this service. As online businesses are increasing in scale, terms and conditions are more important than ever. Terms and conditions must be appropriate for the company's services and, as violations of explicit obligations can result in a fine of up to 5 million won, we recommend reviewing them with a legal expert to ensure there are no incorrect entries or omissions. Law firm Veat provides comprehensive consulting to online service providers offering services such as electronic commerce and telemarketing, in compliance with relevant laws, such as the Act on Protection of Consumers in Electronic Commerce and Telemarketing and Brokerage, and performs the work of drafting terms and conditions and consent forms tailored to the specific services offered by the business, based on an understanding of the company's service content and type and the scope of its obligations. If you need terms and conditions, privacy policies, and legal review, please contact Law firm Veat. Thank you. Law firm Veat
[Consulting] Legal Review of Legality of Artificial Intelligence Services
Client A requested assistance from Veat Law Firm to verify whether it was possible to use data for artificial intelligence learning. When there is creativity present in photographs, they fall under ‘photographic works,’ and acts such as copying or transmitting them without the copyright holder’s permission constitute a violation. Considering this, we reviewed whether the content was not infringing on our service, and also examined the database itself, as it is protected under relevant laws, utilizing the personnel photo dataset released solely for non-commercial purposes. First, regarding photographs publicly available online, if they can identify a specific person, they fall under ‘personal information,’ so we conducted legal review to examine various ways to utilize photographs and images through anonymization, such as removing identifying characteristics. We also pointed out the possibility of copyright infringement issues related to the right of publicity and personality rights. Furthermore, although a specific person’s face is used as training material for artificial intelligence, considering that the output of artificial intelligence is a virtual person’s face, we conducted legal review regarding the possibility of recognizing infringement of the right of publicity and personality rights. For companies possessing technology related to artificial intelligence, there is a high probability of encountering many legal difficulties due to the potential for issues such as personal information, the right of publicity, and personality rights, given the utilization of real person data. In addition, if the right of publicity and personality rights are infringed, the client may need to pursue compensation claims and pay monetary damages. Veat Law Firm has experience with various cases related to copyright law and, based on this experience and accumulated know-how, we provide customized legal solutions tailored to our clients. If you need clear and detailed advice regarding artificial intelligence technology and copyright regulations, please contact Veat Law Firm. Thank you. Veat Law Firm
[Consultation] Debt assumption, etc. M&A business transfer procedure legal review
Law firm Veat conducted legal review regarding asset, liability, employee contracts, and transfer procedures between domestic subsidiaries of foreign companies. Law firm Veat analyzed the Supreme Court precedents comprehensively and explained that transferring personnel and assets as a unified entity while maintaining the same identity falls under business transfer, and guided clients through necessary procedures such as extraordinary shareholder resolutions when transferring all or a significant portion of a business or when it significantly affects the company’s operations. In particular, Law firm Veat detailed the methods for inheriting assets, liabilities, employees, and contracts, and outlined the necessary procedures for each specific transfer, based on the legal review conducted. Furthermore, Law firm Veat advised clients on the obligation to file a change notification when changing companies such as B, representatives, executives, and internet domains after a business transfer. Based on its extensive legal advisory experience in business transfers and acquisitions, M&A, and league tables, Law firm Veat helps clients minimize legal risks, and it ranks 4th in terms of transaction volume in the M&A league tables, as well as being continuously selected for four consecutive years, providing differentiated legal advice. If you require legal advice on business transfer agreements and status transfer agreements, please contact Law firm Veat. Thank you. Law firm Veat
[Legal Review] Software Production Subcontract Agreement Legal Review
Law firm Veat conducted legal review of the program production subcontract agreement based on the request from A Company’s production company. A Company requested that Law firm Veat conduct a review of the subcontract agreement for supplying programs to the OTT company. Law firm Veat clearly explained that as A Company is a business operating an information and communication network, the relevant services commissioned would also be subject to the Act on the Fair Trade of Subcontracting. Specifically, Law firm Veat carefully checked the A Company’s subcontract agreement to ensure that all required contents were listed in accordance with relevant laws, and that it did not violate any related regulations. In the case of a subcontract agreement, it is necessary to accurately record important matters such as payment and payment terms, and subcontract duration, to prevent disputes, and it is advisable to consult with experienced lawyers to ensure that no incorrect information is recorded, and to meticulously examine whether any omissions exist, and to discuss the necessary provisions with the lawyers at the company. Law firm Veat provides optimized legal advice to clients, complying with the Act on the Fair Trade of Subcontracting based on its diverse consulting experience related to the Act on the Fair Trade of Subcontracting. If you need legal advice related to the Act on the Fair Trade of Subcontracting, please contact Law firm Veat. Thank you. Law firm Veat
[Legal Advice] Restraining Order Application Legal Advice
Law firm Veat handled the response regarding the case where a client who previously worked as an asset manager filed a restraining order against the company and its representative director, etc., for acts of negative expression. Law firm Veat analyzed the restraining order request and argued that the client’s words and actions towards the company’s asset manager and employees did not constitute an act of obstructing the company’s business or damaging its credit, and that there was no evidence of any damages or potential damages to the company resulting from the client’s actions. The court accepted this argument and dismissed the creditor’s restraining order request, finding that there was no justification for the protective rights or need for preservation. Given that the restraining order application also carries the risk of criminal charges such as obstruction of business resulting in a potential sentence of imprisonment for up to 5 years or a fine of up to 15 million won, we strongly recommend consulting with a lawyer and taking appropriate action based on the practical situation. Law firm Veat provides immediate and appropriate legal response and professional legal advice based on its experience advising a wide range of companies. If you need legal advice because of damages or complaints resulting from obstruction of business, please contact Law firm Veat. Thank you. Law firm Veat.
[Consultation] Review of Legal Documents for Termination Agreement of Publishing Contract
Law firm Veat prepared the agreement at the mutual consent of developer company A and supplier company B, in order to terminate the publishing contract. Law firm Veat provided legal advice, even though it was regarding the return range and termination agreement with developer company A and supplier company B. In the case of small companies with insufficient capital, they concluded related contracts to devote themselves solely to development, but failed to properly define the publisher’s obligations due to inadequate publishing terms and periods, leading to numerous legal disputes. It is important to carefully proceed with experienced lawyers to avoid unfair contracts during the termination process. Law firm Veat is providing meticulous and satisfying legal advice based on its experience advising various development companies related to publishing. If you have any questions regarding publishing contracts, please feel free to contact Law firm Veat. Thank you. Law firm Veat