Case Studies
[Consulting] English Terms of Service and Privacy Policy Legal Consultation for GDPR Compliance]
Law firm Veat took on a request from A, a game development specialist company, to provide online services directly in the European region, performing GDPR (General Data Protection Regulation) consulting for processing personal information required when providing online services. Law firm Veat, based on the content of the online services that A, a game development specialist company, wanted to offer in Europe, provided guidance on GDPR (General Personal Information Protection Act) content regarding the collection and processing of personal information in Europe. It also provided Privacy Policy (Personal Information Protection Policy), English Terms of Use, and various consent phrases. Are we subject to GDPR? The European Union implemented GDPR (General Personal Information Protection Act) from May 25, 2018, to ensure that all companies and organizations dealing with the personal data of EU residents comply with extensive regulations related to privacy protection. Specifically, in addition to companies operating European business locations that process personal information, and reverse-facing companies processing personal information through e-commerce or monitoring the activities of EU residents, GDPR must be complied with. What happens if GDPR is violated? If GDPR (General Personal Information Protection Act) is violated, depending on the severity of the violation, in the case of a general GDPR regulation violation, a penalty of either 2% of the company's worldwide revenue for the preceding fiscal year or 10 million euros (whichever is greater) may be imposed. In the case of a serious GDPR regulation violation, a penalty of 4% of the company's worldwide revenue for the preceding fiscal year or 20 million euros (whichever is greater) may be imposed. The number of GDPR violations is trending upwards, and the cases have been tallied in order of lack of lawful processing of personal information, insufficient technical and administrative protection measures for personal information protection, and lack of personal information processing principles. If you are planning to enter the European market (EU), thorough preparation for GDPR compliance is necessary. Law firm Veat has performed numerous GDPR consultations and, with its accumulated experience and know-how, provides assistance to ensure that companies can successfully and stably enter Europe. Thank you.
[Consultation] Drafting of English Repayment Convertible Preferred Stock (RCPS) Investment Agreement
Law firm Veat assisted A, a knowledge-based IP company, in drafting the RCPS English investment agreement based on a request to invest in a Singaporean company. A, a knowledge-based IP company, requested that Law firm Veat draft the RCPS English investment agreement, distinguishing between institutional and individual angel investors during the investment process in a Singaporean company. RCPS (Revolving Convertible Preferred Stock) is a type of stock that can be converted to cash or converted into common stock, with priority in dividends. Because it often includes rights found in other types of stock, such as voting rights and warrants, it’s a favored investment method among venture capital firms. If you need legal advice regarding the drafting of the RCPS (Revolving Convertible Preferred Stock) investment agreement, or investment matters, please contact Law firm Veat. Based on our extensive experience in investment and M&A, we will provide you with the best investment structure. Thank you.
[Consultation] Drafting a cease-sale notification regarding an illegal nuclear program sales platform.
Law firm Veat provided legal advice regarding the response to illegal hacks based on the request of game development company A’s game use interference. Game development company A discovered that illegal hack programs related to its game service had been uploaded to overseas open-market platforms and requested Law firm Veat for legal response. Law firm Veat reviewed the operating regulations of the open-market platform and related Korean laws and noted that illegal hack program sale postings are considered prohibited goods under the platform’s operating regulations, corresponding to acts punishable under Korean laws and drafted a certified letter requesting the deletion of postings and seller information. Illegal hack programs disrupt the game’s original system, diminish the interest of other normal users, and cause overload to the game server, which is against the normal operation and protection of users, and therefore it is a fatal hindrance in game operation. The Seoul High Court recognized this as well (Case No. 2009na 21227). Law firm Veat, based on extensive legal advice experience with numerous game companies, is helping game companies operate their games smoothly by responding to illegal hack programs. If you need legal advice regarding responses to illegal hack programs or legal advice during the game operation process, please feel free to contact Law firm Veat at any time. Thank you.
[Legal advice on the M&A transaction where Netmarble F&C is acquiring Bonotechris, a blockchain coin wallet service company]
Law firm Veat successfully closed a transaction in which it acquired shares of blockchain coin wallet service company Bonotechnolosys, a subsidiary of Netmarble, representing 67% of Bonotechnolosys's shares for approximately 20 billion won. This transaction is an investment to establish a strategic partnership for strengthening business alliances. Following the successful completion of the acquisition and the conclusion of a strategic partnership with cryptocurrency exchange Binance, Law firm Veat successfully finalized the investment in Bonotechnolosys, demonstrating its commitment to blockchain-based game development and strengthening the Metanomics ecosystem. Law firm Veat drafted the legal due diligence report, acquisition agreement, and other documents related to the transaction, reflecting the results of the legal due diligence and the finalized transaction terms. Specifically, it successfully provided legal advice on key legal issues for blockchain companies, including the status of Bonotechnolosys as a virtual asset business operator under the Act on the Reporting of Virtual Asset Business Operators and overall cryptocurrency utilization business. Law firm Veat performed the investment process, M&A, and blockchain-related business projects with professional understanding and abundant advisory experience, enabling us to complete the investment process in a faster timeframe than typically required at each stage of investment, including legal due diligence and drafting the acquisition agreement, which pleased our clients. Thank you."
[Consultation] Drafting Terms of Use for Overseas Money Transfers and Currency Exchange Services]
Law firm Veat provides overseas remittance and currency exchange services for a client of A, and provided legal advice regarding the terms of service. A, which develops and operates a small overseas remittance and currency exchange service application, requested legal advice regarding overseas remittance business and related terms of service. Accordingly, Law firm Veat reviewed whether A’s small overseas remittance business complied with the obligations under the Foreign Exchange Transaction Act, and assisted in drafting terms of service to align with A’s currency exchange policies while operating as a small overseas remittance business. When operating a business that involves transferring funds or exchanging currency overseas, it is necessary to provide members with key information related to overseas remittance business in accordance with the Enforcement Decree of the Foreign Exchange Transactions Act (Article 15(4) of the Enforcement Decree of the Foreign Exchange Transactions Act). Law firm Veat is assisting you to operate your business stably while complying with the obligations under the Foreign Exchange Transactions Act regarding overseas remittance business and related terms of service. If you need legal advice regarding overseas remittance business, the Foreign Exchange Transactions Act, and terms of service, please contact Law firm Veat. Thank you.
[Special Issue Topic] Key Contents of Legislation Pertaining to the Metaverse
Veat’s partner lawyer, Songdo-yeong, has written on “Key Contents of Legislation Related to the Metaverse” as the main topic for the “Metaverse-related legislative proposals” published by the Korean Legal Studies & Research Institute’s “Law Year”. “Law Year” is a publication regularly released since 2010 by the Korean Legal Studies & Research Institute, introducing domestic and international legal issues and perspectives, and the Institute’s internal and external activities. In the “Law Year” Spring 2022 Vol. 74 issue released this month, special issues include “Metaverse and Privacy, The Current and Future of the Metaverse, and Key Contents of Legislation Related to the Metaverse”. If you are interested in the key contents of legislation related to the metaverse written by Veat’s partner lawyer, Songdo-yeong, please refer to the attached file. Please also refer to the below link for “Law Year” Spring 2022 Vol. 74 issue. Thank you. -Law Year Spring 2022 Vol. 74 | Law Year | Continuous Publication | Publication | Korean Legal Studies & Research Institute KLRI
[Consultation] Drafting a Partnership Agreement (Shareholder Agreement) before starting a business.
Veat Law Firm assisted startups starting new businesses by drafting partnership agreements (shareholder agreements) on their behalf. Startups at A Venture Company, which develops and operates applications based on CRM, requested Veat Law Firm to draft a partnership agreement (shareholder agreement) due to their situation of starting a new business. Accordingly, Veat Law Firm drafted a partnership agreement (shareholder agreement) that clearly defines the ownership and roles of founders, and stipulates restrictions on stock disposals at the retirement of some founders. Veat Law Firm provides prompt and stable counsel considering the perspectives of startups through its experience in drafting various partnership agreements (shareholder agreements). Please contact Veat Law Firm if you need assistance with drafting partnership agreements (shareholder agreements). Veat Law Firm has various partners including Partner Attorney Choi Seongho, Partner Attorney Songdo Young, and Attorney An Il-won, and provides practical assistance to various startup companies, as Veat Law Firm is also active as a legal mentor for ICT startups at the Ministry of Science and ICT. Thank you. Veat Law Firm.
[Veat News] Mr. Songdo Young, a lawyer, led the presentation as an expert at the ‘Government-Wide Metaverse Coordination Committee’.
Law firm Veat’s Seongdoyoung Attorney delivered a presentation at the first meeting of the ‘Cross-Government Metaverse Coordination Body’ on March 4th, discussing topics such as “Misuse of Personal Information in the Metaverse and Response Measures.” Established with the aim of promoting the metaverse industry, the ‘Cross-Government Metaverse Coordination Body’ was launched with participation from the Ministry of Science and ICT, the Ministry of Culture, Sports and Tourism, the Broadcasting and Communications Committee, the Financial Services Commission, the Personal Information Protection Committee, and the Korea Intellectual Property Office. The Ministry of Science and ICT plans to discuss key legal issues within the metaverse through the coordination body and to identify key issues, utilizing this to inform future regulation and institutional improvement of metaverse-related laws and systems. The first meeting held on March 4th was attended by senior officials from the Ministry of Science and ICT (Software Policy Officer - Metaverse), the Ministry of Culture, Sports and Tourism (Game, Intellectual Property), the Ministry of Gender Equality and Social Affairs (Youth), the Broadcasting and Communications Committee (User Protection), the Financial Services Commission (Innovative Finance), and the Korea Intellectual Property Office (Intellectual Property) and involved a presentation by the coordination body’s operation plan, a presentation by Seongdoyoung Attorney and Son Seung-woo Professor, and a comprehensive discussion for agencies to present their opinions. During the presentation, Seongdoyoung Attorney pointed out that due to the continuous collection and use of personal information such as user location and usage patterns in the metaverse, this could lead to privacy violations and infringement of the dignity of minors, and presented expert opinions on “Personal Information Protection and Crime Issues in the Metaverse.” Please refer to the related article at [https://www.ajunews.com/view/20220304134743081#PL2] and contact Law firm Veat if you require legal advice related to metaverse and NFT. - Cross-Government Metaverse Coordination Body Discusses Regulatory Reform and Industry Activation on March 4th - Cross-Government Metaverse Coordination Body, 4th Discusses Regulatory Reform and Industry Activation - Ministry of Science and ICT Forms Cross-Government Coordination Body to Determine ‘Metaverse’ Policy Thank you.
[News] Partner Attorney, Jeon Eun-byeol, appointed as a member of the Information Disclosure Deliberation Committee of the Personal Information Protection Committee.
Law firm Veat partner attorney Jo Eunbyeol was appointed as a member of the Personal Information Protection Committee’s Information Disclosure Deliberation Committee on February 4, 2021. The Personal Information Protection Committee’s Information Disclosure Deliberation Committee is a committee established and operated in accordance with Article 11 of the “Act on Disclosure of Information by Public Agencies” (hereinafter referred to as the “Information Disclosure Act”) to review whether public agencies receive information disclosure requests should disclose information and other related matters. The committee members must be appointed as external experts who possess knowledge of the business or information disclosure business of relevant national agencies, as stipulated in Article 12(3) of the “Information Disclosure Act.” Partner attorney Jo Eunbyeol leads the personal information consultation team of Law firm Veat and possesses abundant consultation experience related to personal information, information disclosure, and information protection. Furthermore, she actively participates in various external activities, including the Personal Information Protection Committee’s Information Disclosure Deliberation Committee, to enhance her expertise in the field of personal information protection.
“Wait! Did you receive marketing opt-in consent before sending the advertisement message?”
Law firm Veat provided legal advice regarding whether to include advertising when sending newsletters on behalf of Company A, in response to a request to send a newsletter that transmits various contents to applicants, containing a strong>determination of whether to obtain the consent for marketing recipient information if the newsletter is sent with advertising included. According to the “Information and Communications Network Act” (hereinafter “Information Network Act”), a business operator must obtain prior consent to send commercial advertising information via electronic transmission media. Even if the main information is not advertising, if it is a supplementary case, consent is still required unless it falls within an exception, and even if a financial reward is paid for a transaction involving goods sent in relation to a pre-existing business relationship. The Personal Information Protection Committee stipulates that ‘explicit consent’ should be obtained for marketing recipient consent, therefore, it is not desirable to consider a method in which consent is deemed to have been obtained if there is no objection after sending an email. In addition to this, many companies are sending various informative messages for marketing purposes, but unless it falls under a specific exception, such as informative messages or notifications for providing benefits to members, it is not permissible to send information without the member’s explicit consent. In particular, in the case of coupons, mileage, or other benefits provided by a business operator, which include promotional purposes to encourage the use of the corresponding products and services, these coupons and mileages are, as a rule, considered commercial information. However, the Information Network Act stipulates that anyone must obtain the explicit prior consent of the recipient to transmit commercial information via electronic transmission media. Due to this, commercial information transmissions are, as a rule, restricted. Even free newsletters or event notifications that may be helpful to members may be an exception, so companies need to verify whether they have obtained the member’s explicit consent before sending commercial information. If a member does not wish to receive benefit or advertising information notifications, but receives such information without explicit consent, there is a risk of a penalty for violating the Information Network Act, which can also cause inconvenience for many members. Therefore, before sending benefit notifications to members, it is necessary to consult a lawyer regarding whether the information is considered commercial information, whether explicit consent has been obtained if it is commercial information, and what specific matters must be disclosed when transmitting commercial information. Thank you. Law firm Veat.