The Legal 500

39 SAJIK-RO 8-GIL (SEYANG BLDG, NAEJA-DONG), JONGNO-GU, SEOUL 110-720, SOUTH KOREA
Tel:
Work +82 2 3703 1114
Web:
www.kimchang.com
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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

SEYANG BUILDING, 223 NAEJA-DONG, JONGNO-GU, SEOUL 110-720

Tel: Work +82 2 3703 1114

Fax: Fax +82 2 737 9091

Web: www.kimchang.com

Email: lawkim@kimchang.com

Legal Developments by:
Kim & Chang

  • South Korea: Draft Act on Compensation and Relief of Environmental Pollution Damage

    The Korean Government has launched a government project to establish a system to compensate and insure against environmental pollution damage, and is pursuing the introduction of a legal relief system for environmental pollution damage. Such Government initiative is intended to address the current situation where environmental pollution accidents inflict serious damage on society due to the enormous amount of tax money that is required for curing the pollution, while companies that caused the accident sometimes go bankrupt because they cannot bear the financial burden of paying the compensation. Moreover, the victims of environmental pollution accidents are often unable to obtain proper compensation due to the burden of proving that their injury resulted from the pollution or due to the prolonged litigation process which is unavoidable in light of the nature of environmental pollution.
    - 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
  • South Korea: Draft Act on Compensation and Relief of Environmental Pollution Damage

    The Korean Government has launched a government project to establish a system to compensate and insure against environmental pollution damage, and is pursuing the introduction of a legal relief system for environmental pollution damage. Such Government initiative is intended to address the current situation where environmental pollution accidents inflict serious damage on society due to the enormous amount of tax money that is required for curing the pollution, while companies that caused the accident sometimes go bankrupt because they cannot bear the financial burden of paying the compensation. Moreover, the victims of environmental pollution accidents are often unable to obtain proper compensation due to the burden of proving that their injury resulted from the pollution or due to the prolonged litigation process which is unavoidable in light of the nature of environmental pollution.
  • South Korea: KFTC Approves First Consent Decree

    On March 12, 2014, the Commissioners of the Korea Fair Trade Commission ("KFTC") approved a consent decree with Korea's major Internet portal companies, Naver and Naver Business Platform (collectively "Naver") and Daum Communications ("Daum"). This was the first time since its introduction that a consent decree was used to conclude a case before the KFTC. With this consent decree, the KFTC's investigation of Naver and Daum for their alleged abuse of market dominance ended without any finding of liability.
  • South Korea: Recent Developments in Broadcasting Regulations

    Recent regulatory developments in the ever-changing broadcasting environment are summarized below.
  • Accounting System Reformation Plan and Expansion of External Audit for Limited Liability Company

    On October 28, 2013, the Financial Services Commission (the “FSC”) announced an accounting system reformation plan related to the amendment to the Act on External Audit of Stock Companies (the “Plan”) aiming primarily at improving transparency of limited companies ( yuhan heosa ) and non-listed large company’s accounting system.
  • South Korea: Update on K-REACH and CCA

    As noted in our previous issue, the Act on Registration, Evaluation, Authorization and Restriction of Chemical Substances (K-REACH) and Chemicals Control Act (CCA) were recently enacted. Below are some of the key updates on K-REACH and CCA.
  • South Korea: KFTC’s First Application of the Consent Decree Process

    On November 27, 2013, the Korea Fair Trade Commission ("KFTC") agreed to apply for the first time the consent decree process in its investigation of Naver and Naver Business Platform (jointly, "Naver") and Daum Communications ("Daum") for their alleged violations of Korea's Monopoly Regulation and Fair Trade Law ("FTL").
  • South Korea: K-REACH and Chemicals Control Act: Advance Notice of Draft Subordinate Statutes

    On February 18, 2014, the Ministry of Environment of Korea ("MoE") announced an advance notice for the draft subordinate statutes of the K-REACH and Chemicals Control Act ("CCA"). Provided below are the key provisions of the legislation that is to take effect on January 1, 2015.
  • South Korea: Supreme Court Decisions on Ordinary Wage – Action Plan for Employers

     
  • South Korea: Supreme Court Defines the Scope of Ordinary Wage

    Ordinary wage, the standard in assessing compensation for overtime, nighttime and holiday work and unused annual leaves, refers to any money paid regularly, uniformly and on a fixed basis. On December 18, 2013, the Supreme Court rendered two full bench decisions on the scope of ordinary wage. Kim & Chang represented the Defendant-Appellant Kabul Autotech in both cases, in which the Supreme Court vacated the judgment of the lower courts in favor of the Defendant-Appellant and remanded the cases.
  • Further Korean Data Privacy Rules Announced

    Further to the Personal Information Protection Act ( PIPA ), the comprehensive data privacy law passed in March 2011 which will take effect on September 30, 2011, 1 the government has unveiled draft regulations to flesh out a number of the applicable requirements and standards. The drafts of the Enforcement Decree and the Enforcement Regulations, published on May 24, 2011, include significant requirements relating to data security, which, like other provisions, apply to any entity that handles personal information files for work purposes (referred to as “data handlers” below). Also now spelled out are various details concerning consent requirements, website sign-up rules, video camera restrictions, use of third party data handlers, reporting of leaks, and collective dispute mediation.