Case Studies
[Webinar] Data Privacy: Trends & Insights 2021 [Veat] Law firm Veat
Law firm Veat’s partner attorney, Songdo Young, is actively involved as the director of the Korea Association of Personal Data Professionals (KAPP), where you can check the 2021 trends and insights related to personal information law, policy, technology, and market in one place. This event, which will be held on Friday, February 5th, from 2:00 PM to 6:00 PM in 2021, will provide participation URLs to only webinar applicants. Notably, partner attorney Songdo Young will be hosting the event, and partner attorney Songdo Young stated, “Because the webinar will be hosted by many personal information experts who gather together, it will be of great help.” Data Privacy: Trends & Insights 2021 Webinar Please refer to the application link if you would like to participate. Thank you. Law firm Veat
[Consultation] Legal advice regarding wage error payment
A Corporation agreed with Mr. Kim, who was on unpaid leave, to pay wages due to an error, and notified the employee of this fact. As a result, Mr. Kim expressed, orally, his intention to return the mistakenly paid wages, but A Corporation consulted with Law Firm Veat regarding any potential issues under the Labor Standards Act that may arise during the return process. According to the Supreme Court’s decision of December 21, 1995 (Case No. 94da26721), if wages are overpaid due to calculation errors, etc., the timing of the overpayment, the settlement and adjustment of the wages, should be reasonably close to the overpaid period, and there should be no risk of harming the employee’s financial stability, such as prior notice of the amount and method, then it is permissible to offset the claim for the return of the overpaid wages. Law Firm Veat conducted a legal review regarding the possibility of returning the mistakenly paid wages in relation to the above case law and provided a comprehensive opinion. Law Firm Veat’s official website only includes general legal information. Therefore, if you need a legal opinion regarding a specific case, please request official consultation. Thank you. Law Firm Veat
What are the main contents of the complete revision of the Copyright Act?
With the rise of online platforms and changes in creative environments, anyone can now become a creator and possess copyright, and the practice of using copyrighted works as creative materials is becoming commonplace. In addition, new technologies and industries are rapidly developing, such as artificial intelligence learning utilizing copyrighted works. In response to these changes, the Ministry of Culture, Sports and Tourism submitted a revised copyright law proposal in November, which is currently under discussion in the National Assembly. Key aspects of the revised copyright law proposal include, among others: Establishment of additional compensation rights and other copyright contract clauses Under the current law, there were restrictions on assigning copyrights, which made it difficult to correct unfair assignments. Therefore, the revised copyright law includes a provision that allows the copyright owner to demand a certain compensation (share of profits) when an unreasonable imbalance arises due to unexpected profits in a contract. Establishment of a ‘work for hire’ principle – ‘Creator’s Caution’ Under the current law, corporations and their employees created works based on the plan of the corporation, and the copyright was initially attributed to the corporation. Therefore, the revised copyright law stipulates that in the case of works for hire, the copyright initially belongs to the creator, and then is transferred to the corporation, and the corporation possesses the copyright, but the copyright regarding the artistic personality belongs to the creator. ‘Copyright Infringement’ for illegal link sites The revised copyright law defines internet websites that primarily operate to provide links for accessing illegal copyrighted works as ‘operating such websites’ and ‘providing links’ as ‘acts of ‘copyright infringement’ – ‘creator’s caution.’ Permission to copy and transmit for information analysis The revised copyright law includes a provision to allow copying and transmission for information analysis using computers, in order to remove business operators’ uncertainties when using copyrighted works for artificial intelligence learning (deep learning) and big data analysis. Introduction of ‘Publisher’s Right’ (Rights of Publication) The revised copyright law explicitly defines ‘publisher’s right’ as discussed in judicial precedents. Promotion of public interest in managing royalties – transparency in distribution and use, reduced criminal penalties and strengthened civil liability, and introduction of ‘prior resolution’ (prior dispute resolution) – the shift from ‘digital audio broadcasting’ to ‘digital broadcasting’ Thus, the key aspects of the revised copyright law proposal include: restoring balance between creators and users, strengthening the stability and predictability of copyright use, supporting the development of copyright-related industries and technologies, and reflecting changes in the shift to a non-face-to-face society. In particular, the introduction of a ‘permission to copy and transmit for information analysis’ will help reduce legal uncertainties in ‘academic and commercial artificial intelligence development and big data analysis processes,’ and is expected to contribute significantly to the development of related industries. The industry is keenly watching the progress of the revised copyright law. Law firm Veat possesses extensive experience in providing legal advice related to copyright laws, revised copyright laws, copyright infringement, and other matters. If you require legal advice on copyright laws, revised copyright laws, copyright infringement, or other related matters, please contact Law firm Veat. Thank you.
[Consultation] Proxy for Corporate Merger Notification Procedure with Officer Appointment]
An employee of A, a venture capital/loan/startup consulting firm, was scheduled to take on the role of a non-executive director and executive officer of another company, B, a general joint-stock company. Accordingly, A commissioned Law firm Veat for legal advice related to executive officer dual appointment notification, and Law firm Veat represented the company in filing a notification of business combination (executive officer dual appointment) pursuant to Article 12(1)(3) of the Act on Fair Trade and Monopoly Regulation. In this case of business combination notification related to executive officer dual appointment, as the employee of A was not a representative director but an executive officer holding less than one-third of the total number of directors of B, it was classified as a simplified notification subject according to Ⅱ.2.d of the Procedures for Business Combination Notification. Therefore, Law firm Veat provided comprehensive legal advice to A regarding the necessary documents and information required for a fair trade law-based executive officer dual appointment business combination notification, and proceeded to prepare and submit the business combination application and attached documents. For business combinations of a certain size or more, the Fair Trade Commission reviews the notification, and the notification requirements may vary depending on the type, such as stock acquisition, executive officer dual appointment, merger, business transfer, and company participation. Law firm Veat provides comprehensive legal advice on the procedures and documents required for business combination notifications for each type of business combination. If you need legal advice regarding business combination notifications, please contact Law firm Veat. Thank you.
[Consultation] Review of the feasibility of establishing an artificial intelligence (AI) service using copyrighted works online.
Law firm Veat was commissioned by A, a company operating AI-related businesses, to review the possibility of building AI services utilizing internet copyrighted works. A commissioned Law firm Veat to review whether the AI service infringed on copyrights, utilizing data mining methods by collecting and analyzing copyrighted works publicly available on the internet. Accordingly, Law firm Veat reviewed whether the AI service infringed on copyrights based on relevant laws such as the “Copyright Act” and provided advice. Last November, a proposed amendment to the Copyright Act submitted by the Ministry of Culture, Sports and Tourism is being actively discussed in the National Assembly. This proposed amendment includes, among other things, a new provision limiting intellectual property rights to allow the use of copyrighted works even without obtaining a license, within the scope deemed necessary for automated information analysis using computers. Law firm Veat possesses extensive experience providing legal advice on copyright matters and leverages accumulated know-how. Please contact Law firm Veat if you need legal advice regarding the Copyright Act or the proposed amendment to the Copyright Act. Thank you.
'Cryptocurrency investment' trend increases demand for exchange consulting... Law firms accelerate efforts to strengthen expertise.
Over the past year, the scale of stocks purchased by individual investors domestically and internationally has exceeded 100 trillion won, and the investment market is experiencing a booming period unprecedented in history. Investment markets are also growing through cryptocurrencies such as Bitcoin and Ethereum. Consequently, the cryptocurrency industry is keenly aware of the need for legal consultations regarding new areas, and the law firm industry is strengthening its expertise in the field, including establishing a cryptocurrency-dedicated team. Law Firm Veat is a law firm consisting of IT-trained lawyers who have come together to provide highly specialized cryptocurrency and blockchain legal consultations. It has been recognized by JoongAng Ilbo for the article "‘Cryptocurrency Investment’ Hype Increases Demand for Firm’s Advisory Services" highlighting its expertise. IT-trained lawyers who have come together to provide highly specialized cryptocurrency and blockchain legal consultations. Veat has established a cryptocurrency-dedicated team comprised of Choi Seong-ho Partner, Songdo Young Partner, and An Il-won Senior Partner, who have been appointed as members of the IT Blockchain Committee of the Korean Bar Association. The firm currently provides legal consultations to leading cryptocurrency exchanges in Korea, such as Upbit, and offers legal advice to those seeking to establish cryptocurrency exchanges and resolve legal disputes related to exchanges. It provides legal consultation on cryptocurrency exchange establishment and legal advice on cryptocurrency related legal disputes. Please refer to the following case studies regarding Veat’s advice on Bitcoin, Ethereum, and other cryptocurrencies. For any further inquiries, please feel free to contact Veat. - Announcement of Amendments to the Act on Reporting and Use of Specific Financial Transaction Information (Specific Financial Transaction Act); Will Orderbook Sharing Be Revealed? - Review of Operating Policies of Virtual Currency Exchanges - Legal consultation for a dispute between virtual currency buyers commissioned by A, a virtual currency issuer. - Legal consultation on the legality of virtual currency issued by A, a virtual currency issuer. Thank you.
Law firm Veat, regulatory sandbox legal consulting
This law firm established a Regulatory Sandbox team (Partner Attorney Songdo-yeong) in 2018 to perform consulting services for ICT regulatory improvement and has since provided numerous consulting services, including regulatory sandbox and legislative consulting. This law firm is composed of lawyers with expertise in ICT areas, gained from backgrounds in engineering and ICT-related advisory and legal affairs, and is a law firm with strengths in the ICT sector. It has secured numerous case studies related to regulatory sandboxes and provides comprehensive consulting services, including legal advice and temporary authorization, exemption designation for ①“Information and Communication Promotion and Active Integration of Convergence etc. Act,” ②“Promotion of Industrial Convergence Act,” ③“Financial Innovation Support Act,” ④ “Regional Specialized Development Special Districts Regulatory Special Provisions Act,” ⑤“Smart City Creation and Industrial Promotion Act,” Lawyer Songdo-yeong of this law firm was recognized for his contributions to the establishment and expansion of the regulatory sandbox system through reviewing and providing legal advice on over 200 regulatory sandbox proposals and receiving the National Order of Merit from the Prime Minister at the ‘Science & Information Communication Day’ commemorative award ceremony in 2020. The major cases related to regulatory sandbox of this law firm are as follows: Information & Communication Industry Promotion Agency, 2018 ICT & Integration Regulatory Improvement Consulting Information & Communication Industry Promotion Agency, 2019 ICT Regulatory Sandbox Consultation and Submission Consulting Information & Communication Industry Promotion Agency, 2019 ICT Integration Regulatory Improvement Consulting (Post-Management) Korea Institute of Industrial Technology Promotion, 2020 Industrial Convergence Regulatory Sandbox Legal Consulting Korea Institute of Industrial Technology Promotion, 2020 Regulatory Sandbox Special Provisions Company Post-Management Operation Support Project Korea Land & Sea Transportation Research Institute, 2019 Smart City Proof of Concept Service Legal Consulting Support Korea Land & Sea Transportation Research Institute, 2020 Smart City National Pilot City Proof of Concept Service Legal Consulting Support Project Korea Smart Grid Business Division, Future Smart Grid Proof of Concept Research Project Korea Industrial Park & Industrial Complex Corporation, Shipbuilding & Marine Industry Regulatory Sandbox Consulting Korea Industrial Park & Industrial Complex Corporation, Ulsan Innovation Capacity Strengthening Support Project Food Safety Information Institute, Policy Recommendations for Shared Kitchen Operation Status Survey and Institutional Introduction (Regulatory Amendment Research Project) Korea Industrial Park & Industrial Complex Corporation, Shipbuilding & Marine Industry Regulatory Sandbox Support Mid- to Long-Term Roadmap Legal Support Project Researcher Korea Smart Grid Business Division, Future Smart Grid Proof of Concept Research Project Regulatory Sandbox Consulting Legal Advice Provision Internet Enterprise Association, Internet Industry Regulatory Improvement Task Legal Review Korea Chamber of Commerce and Industry, Regulatory Sandbox Consulting (2020) Information & Communication Industry Promotion Agency, Multiple Cases Including Internet & ICT Integration Regulatory Improvement Excellent Case Identification If you need legal advice related to regulatory sandboxes, please feel free to contact Law Firm Veat. Thank you. Law Firm Veat
Legal advice regarding dispute over termination of software use contract
A is a company that develops and supplies software, and has concluded a software use agreement with B. (hereinafter “this agreement”). B notified A of its intention to terminate the agreement without fulfilling the contract period, and A consulted with Law Firm Veat to respond to the notification of contract termination. Accordingly, Law Firm Veat conducted a comprehensive legal review of the software use agreement between A and B regarding the power of termination and statutory termination rights, leading to a smooth resolution. According to this agreement, the minimum contract period is 1 year, and both A and B are obligated to maintain the agreed-upon contract period unless one of them causes a serious breach of contract to the other party. In order for B to make a legitimate demand for contract termination from A in accordance with this agreement, it must be the case that A’s data is severely damaged to the point of being unable to provide normal service for 15 days or more, or that A’s business situation has deteriorated to the point where it cannot maintain or repair the software. However, in this case, as A did not meet any of the above conditions and the request for termination was unilateral from B, it was rejected through a certified letter. Standard software use agreements may contain clauses that can be interpreted vaguely, so it is advisable to draft appropriate termination requirements through mutual agreement between the parties as in the case above. In this dispute, prior to the conclusion of the contract, A requested Law Firm Veat to review the software use agreement legally, and the dispute was resolved smoothly. Law Firm Veat provides professional advice on various legal issues based on its extensive experience advising on corporate matters. Please contact Law Firm Veat if you are about to conclude a software use agreement or if you have a dispute related to a contract. Thank you.
[Stock Option Consulting] Eligibility Requirements for Stock Purchase Warrants Legal Review
Do employees and executives holding stock options acquired from venture companies qualify as eligible stock options? A, a startup company, requested a legal review regarding the clause establishing the basis for granting eligible stock options to employees as part of the process of exercising stock options granted to its employees. In response, A requested a review from Law Firm Veat regarding whether B’s stock options held would qualify as eligible stock options and be subject to tax special provisions, and Law Firm Veat specifically examined whether B met the requirements to be recognized as an eligible stock option under the Tax Special Provisions Act, examining in detail whether A had conducted all necessary procedures, such as shareholder meetings and board resolutions, when granting stock options, and whether the stock option agreement was executed in accordance with relevant regulations. What is a stock option? An eligible stock option is a tax special provision under the Venture Company Growth Special Measures Act (hereinafter referred to as the Venture Company Act) that exempts from income tax the profit from exercising stock options (the difference between the stock price at the time of exercise and the exercise price) when an executive or employee of a venture company receives stock options under this act. Why is stock option consulting necessary? Stock options (stock purchase options) allow companies to attract and retain key personnel by providing financial rewards proportional to the company’s growth, and these key personnel are motivated to work with greater passion. Although the concept of stock options may seem simple, they must be granted and exercised in accordance with the complex regulations established by the Korean Commercial Code and the Venture Company Act. Granting and exercising stock options in violation of these regulations can render them void. Law Firm Veat provides legal consultation to companies and key personnel who are unfamiliar with relevant regulations regarding the granting and exercise of stock options. Leveraging experience from numerous stock option granting and exercise cases, the firm proposes stock option terms that satisfy both the company and its key personnel, and assists in drafting stock purchase option agreements to minimize the possibility of disputes that may arise after the granting of stock options, such as subsequent capital increases or reductions. If you are a company or individual that needs legal consultation on stock options and stock purchase options, please contact Law Firm Veat. Thank you. Law Firm Veat
[Consultation] Legal review of the development service contract for the solution development project.
Law firm Veat conducted legal review of the construction agreement based on the request of A, a solution development company. A is scheduled to conduct blockchain-based data storage and application project development work, and since it wants to receive legal review to ensure there are no unfavorable terms before contract execution, it entrusted Law firm Veat, which understands both IT and legal fields simultaneously, with a construction agreement advisory. Law firm Veat comprehensively reviewed the construction agreement requested by A, including delivery obligations for the development deliverables and payment obligations, intellectual property rights, and confidentiality in the development process, providing legal expert opinions. Law firm Veat is a law firm established with IT majors, and it provides differentiated legal services based on deep understanding of technology-based companies and various business cases. If you need legal review for construction agreement related to solutions, please contact Law firm Veat. Thank you. Law firm Veat.