Corporate Governance & Shareholder Disputes

“Proactive, commercially-minded and client-oriented”

- The Asia Pacific Legal 500

Overview

We offer practical advice and comprehensive solutions based on our understanding of complex corporate governance and shareholder dispute issues and decades of experience in this area.

Customized advice for establishing optimal corporate governance plans

We have counseled many of the largest corporations in Korea on the optimal corporate governance structure tailored for each client based on careful consideration of their unique needs. As regulatory scrutiny intensifies, clients depend on us for comprehensive corporate reorganization plans that meet the constantly evolving industrial and regulatory climate, whether they involve conversion into a holding company structure, internal reorganization within a business group, business divisions, mergers or comprehensive stock exchanges or transfers.

Our highly experienced attorneys, accountants and other experts have in-depth knowledge about the relevant laws and regulations and offer practical solutions on all aspects of corporate governance. Our Corporate Governance Group also includes well-respected authorities in the relevant fields, including former government officials with experience at the Financial Supervisory Service, Korea Fair Trade Commission and Korea Exchange and the National Tax Service, who bring first-hand experience and a broad perspective to address our clients’ concerns.

Thinking outside the box to derive the best solution for clients involved in hostile takeovers and other management disputes

We are well-known for our expertise in shareholder disputes and hostile takeover transactions and actively assist clients from the early stage by formulating strategies to advance their interests. We also leverage our expertise across our industry-leading practice groups, such as corporate, civil and criminal, tax, labor and employment and antitrust and competition, to respond quickly and effectively to challenges and derive the best solution for our clients.

We have represented both bidders and targets in different contexts and, based on our extensive experience, have played pivotal roles in developing innovative solutions for either securing or defending management control for a number of different corporations. Our commitment to clients’ success has allowed our team to set many groundbreaking precedents in contentious matters involving a wide spectrum of issues, including in relation to convocation of an extraordinary shareholders’ meeting as well as injunctions relating to issuance of new shares, performance of director’s duties, company’s refusal to provide access to books and records or exercise of voting rights.

Key Services

Corporate Governance
Develop strategies and structures for reorganization of corporate governance, including conversion into a holding company system
Establish a holding company in Korea or overseas
Advise on mergers, business divisions, comprehensive stock exchanges or transfers, transfers of business and/or in-kind contributions implemented as part of governance restructuring plans
Assist with obtaining approvals from government authorities, including the Korea Fair Trade Commission and Financial Supervisory Service, in connection with governance restructuring
Provide legislative consulting services relating to drafting and amending relevant laws and regulations
Shareholder Disputes
Prepare takeover/defense strategies for hostile M&A transactions
Develop strategies for responding to exercise of minority shareholders’ right or shareholder activism
Advise on issues relating to shareholder rights, including establishing and implementing strategies in preparation for general shareholders’ meetings and/or board meetings, convocation of general shareholders’ meetings, books and records requests, injunctions relating to exercise of voting rights and litigation for the revocation of resolutions adopted at a general shareholders’ meeting
Develop strategies for responding to shareholder dispute-related investigations by regulatory authorities (such as the Financial Supervisory Service), shareholder derivative suits brought against directors/auditors, litigation for determining directorship, criminal accusations, damage claims, and injunctions or nullity actions relating to issuance of convertible bonds and bonds with warrant
Advise on the effectiveness and interpretation of shareholders’ agreement
Advise on management disputes between business partners (shareholders) and disputes involving joint ventures
Advise on management disputes relating to failed M&A deals and on post-signing disputes involving representations and warranties or penalties
Advise on disputes involving exercise of appraisal rights and calculation of purchase price

Representative Cases

Advised on Shinhan Financial Group’s acquisition of OrangeLife Insurance as a subsidiary
Advised CJ Group on the reorganization of corporate governance, including inter-affiliate mergers
Advised on Eugene Group’s takeover bid against Dong Yang
Corporate Governance
Advised on Shinhan Financial Group’s acquisition of OrangeLife Insurance as a subsidiary
Advised on Kakao and Korea Investment Holdings’ change of the largest shareholder of Kakao Bank
Advised CJ Group on the reorganization of corporate governance, including inter-affiliate mergers
Advised Kakao on the merger of its subsidiary Kakao M and on the spin-off of Kakao M’s media/contents business by in-kind contribution
Advised on GS Energy’s sale of two urban gas subsidiaries and reorganization of business portfolio
Advised on DGB Financial Group’s acquisition of Hi Investment & Securities as a subsidiary
Advised on Seah Group’s establishment of a holding company system (Seah Steel Holdings) and reorganization of overseas subsidiaries
Advised on POSCO E&C in the merger of its subsidiary
Represented Daerim Motor in the spin-off of its two-wheeled motor vehicle business
Advised on the comprehensive stock swap between DGB Financial Group and its subsidiary DGB Life Insurance
Advised on POSCO China’s conversion into an intermediary holding company
Advised on Daesang Holdings’ reorganization of its subsidiaries’ business structure
Advised on SK C&C’s merger with SK Holdings
Advised on Korea Exchange Bank’s divestiture of card business a merger with HANASKCARD
Advised on Korea Exchange Bank’s merger with Hana Bank
Advised on GS’s split-off and GS Energy’s conversion into a holding company
Advised on Nexen’s conversion into a holding company
Advised on KT’s establishment of a foreign holding company
Advised on LG Display’s establishment of a holding company in China
Advised on CATV Broadcast’s conversion into a holding company and attracting foreign investment)
Advised on Daesang Group’s establishment of a holding company system
Advised on Daewoong Pharmaceutical Group’s conversion into a holding company system
Advised on Pulmuone Group’s conversion into a holding company system
Advised on the establishment of Shinhan Financial Group
Advised on the establishment of Woori Financial Group
Shareholder Disputes Hostile M&A – Target Representations
Advised on Hankuk Carbon’s management dispute
Advised on the management dispute between NCSOFT and Nexon
Advised on Mugunghwa’s defense against takeover bid
Advised on Homecast’s management dispute
Advised on Teems’ defense against takeover bid by minority shareholders
Advised on French Korean Aromatics’ management dispute
Advised on De Chocolate E&TF’s defense against takeover bid
Advised on Finedigital’s defense against KY Entertainment’s takeover bid
Advised on HMM’s defense against KCC’s hostile takeover bid
Advised on SK’s defense against Sovereign Asset Management’s demand for convocation of an extraordinary shareholders’ meeting
Hostile M&A – Bidder Representations
Advised on takeover bid against a Korean subsidiary of Brycen
Advised on Eugene Group’s takeover bid against Dong Yang
Advised on minority shareholders’ takeover bid against KD Media
Advised on SMECS’ (currently Orient Pregen) restoration of management control
Advised on Kuk-Il Paper MFG’s takeover bid against Shinho Paper MFG (currently EN Paper MFG)
Advised on acquisition of management control over HK Savings Bank
Advised on Granite Venture Capital’s takeover bid against Cho Heung Capital (currently CNH Capital)
Advised on Hanhwa Merchant Banking’s management dispute