The Legal 500

Work +82 2 3703 1114
Fax +82 2 737 9091

Show all Press releases

Kim & Chang advised AB InBev in USD 1.8 bil sale of OB - PE Deal of the Year, IFLR Asian Awards 2010

March 2010

At Kim & Chang, we offer unrivaled expertise on all aspects of public and private M&A transactions in Korea . Our Mergers & Acquisitions Practice Group is widely recognized in Korea and throughout Asia as the best of its kind, and our preeminence in this practice area has been recognized over the years through the quality of our deals. The following is a summary of the firm’s recent engagements in 2009. 



In March 2009, Kim & Chang represented Doosan Corporation when it sold its entire liquor business group to Lotte Liquor BG Co., Ltd., a new entity established by Lotte Chilsung Beverage, for 503 billion KRW.


In June 2009, Kim & Chang represented eBay KTA (UK) Ltd., a wholly-owned subsidiary of eBay Inc., in its US$1.21 billion acquisition of Gmarket Inc., a NASDAQ-listed leading retail e-commerce marketplace based in Seoul, Korea . This landmark transaction represents one of the largest cross-border tender offers for shares in a Korean company and employed an innovative structure to ensure compliance with U.S. and Korean securities and tax regulations. Kim & Chang and the Palo Alto-based law firm Cooley Godward Kronish LLP advised eBay on all aspects of the transaction, including M&A, employee benefits, intellectual property and tax matters.


Significantly, Kim & Chang's antitrust team successfully obtained approval for the transaction from the Korea Fair Trade Commission based on an analysis of benign effect on dynamic competition in the Korean retail e-commerce market.


In July 2009, Kim & Chang represented Anheuser-Busch InBev NV/SA, a Belgium based beer brewery, when it sold its 100% stake in Oriental Brewery Co., Ltd. for USD 1.8 billion with a call option with respect to 100% of Oriental Brewery Co., Ltd. and an earn-out tied to the performance of Oriental Brewery Co., Ltd.


In September 2009, Kim & Chang advised Doosan Heavy Industries & Construction Co., Ltd. (“DHI”), Korea’s leading manufacturer of power plants, when, together with its Czech subsidiary Doosan Heavy Industries Czech a.s., it entered into a definitive agreement for the acquisition of 100% of the equity stake in Škoda Power a.s., a Czech steam turbine manufacturer, from Škoda Holding a.s for 450 million Euros. This transaction is noteworthy for being one of a very few cross-border acquisitions by a Korean company this year notwithstanding the challenges created by the recent global financial crisis.


In November 2009, Kim & Chang advised on Korean legal and regulatory issues relating to MagnaChip Semiconductor Ltd., a Korean semiconductor manufacturer, in connection with the debt and equity restructuring of its ultimate parent company MagnaChip Semiconductor LLC and certain affiliates. MagnaChip Semiconductor LLC and certain affiliate companies in the US successfully emerged from voluntary Chapter 11 restructuring which commenced in June 2009. Upon completion of the restructuring, MagnaChip Semiconductor LLC and its affiliate companies significantly reduced their long-term debt (from approximately US$850 million to US$62 million), and Avenue Capital Management II, L.P. (“Avenue Capital”) became the controlling shareholder of MagnaChip Semiconductor LLC.


In December 2009, Kim & Chang acted as counsel to VOGO Fund and Korea Global Fund when they acquired shares of BC Card from Hana Bank and SC First Bank for KRW 194 billion, with the goal of acquiring management rights of BC Card. 


Kim & Chang


Tel: Work +82 2 3703 1114

Fax: Fax +82 2 737 9091



Legal Developments by:
Kim & Chang

Legal Developments in South Korea

Legal Developments and updates from the leading lawyers in each jurisdiction. To contribute, send an email request to
  • Brief Introduction to Issuing QIB Securities in Korea

    To date, most issuance of bonds in the Korean capital markets has been focused on the public market, but in regard to issuance of bonds in the public market, there is an obligation to file a securities registration statement for investor protection purposes and there are broad disclosure obligations even during the period of secondary distribution and trading of such securities.
  • [South Korea] 2016 Proposed Tax Law Amendments

    On July 28, 2016, the Ministry of Strategy and Finance announced its proposed tax law amendments for 2016. According to the proposal, the revisions are aimed at increasing the engines for growth and promoting fairness in taxation in accordance with the mid- to long-term tax policy initiatives of the government. The proposed amendments are expected to come into effect on January 1, 2017 pending approval by the National Assembly.
  • Substantial Developments in Korean Bankruptcy Laws

    Substantial Developments in Korean Bankruptcy Laws Reflecting Practical Needs of the Parties Involved: CRPA and DRBA
  • Breaking Down the Just-Cause Barrier

    A Systematic Approach of Securing Greater Flexibility in Managing Poor Performing Employees
  • Court Regards Tax Avoidance Purpose as a Primary Consideration in Determining Beneficial Ownership

    The Seoul Administrative Court recently ruled that a Hungary-based subsidiary ("HungarianCo") - set up in 2010 by a Dutch Motion Picture Licensing Entity ("Dutchco") to hold exclusive rights in distributing motion pictures produced by the group company in Korea, Japan, Israel and Hungary - was not the beneficial owner of royalty payments made by a Korean entertainment and motion pictures distributor ("KoreaCo") for rights to distribute motion pictures in the Korean market. Although HungarianCo had substantive physical presence in Hungary, the court held that based on an overall consideration of the purpose for setting up the entity in a certain jurisdiction, the nature of the activities performed by the employees, scope of transactions undertaken and actual flow of payments, DutchCo was the beneficial owner to the royalty payments and applied the royalty withholding tax rate of 15% pursuant to the Korea-Dutch tax treaty.
  • Korean Regulator, Encouraging Financial Institutions by Relaxing the Chinese Wall Regulations

    On 28 June 2016, the Korean government enacted an amendment (the "2016 Amendment") to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (the "FSCMA") which, among others, expands the exception (the “Wall-Cross exception”) to the Chinese wall regulations, i.e., restriction on the communication and exchange of information between business sectors within financial institutions (The term “financial institutions” as used in this article refers to dealers, brokers, fund managers, investment advisors, discretionary investment companies and trust companies (all of which are regulated under the FSCMA) to the exclusion of all other types of financial business entities such as merchant banks.) The 2016 Amendment seeks to enhance the competitiveness of financial institutions by allowing them to integrate activities which do not - or are unlikely to - conflict with one another, and further simplifies the regulatory scheme by removing the exceptions to the Chinese wall regulations from the Regulation on Financial Investment Business and incorporating the same in the Enforcement Decree.
  • [South Korea] Ministry of Strategy and Finance Issues Notice of a New Filing Requirement, and ...

    [Ministry of Strategy and Finance Issues Notice of a New Filing Requirement, and Those Companies Subject to the Comprehensive Report on International Transactions]
  • [South Korea] KFTC Issues Amended Guidelines on the Review of Unfair Trade Practices

    On December 31, 2015, the Amendment to the Guidelines on the Review of Unfair Trade Practices (“Amendment” and “Guidelines,” respectively) came into effect. The Guidelines are intended to provide guidance to companies about when their unilateral conduct may be considered an “unfair trade practice.”
  • [South Korea] Government to Strengthen Investigation of Environmental Crimes through a Newly ...

    [Government to Strengthen Investigation of Environmental Crimes through a Newly Established Task Force]
  • Court Holds Royalties for Foreign-Registered Patents are Not Subject to Withholding Tax in Korea

    Court adhered to the existing position on the determination of royalty payment