Post-M&A Disputes In Korea

By Kap-You (Kevin) Kim* and John P. Bang**

Korea has seen a dramatic increase in international commercial disputes in recent years. Among these, post-M&A deal disputes have become increasingly common and acrimonious. As the authors detail below, a historically unique set of circumstances set the stage for this swift rise in international disputes in Korea. The authors, leading the International Arbitration and Litigation team at Bae, Kim & Lee, one of Korea’s preeminent law firms, have had the opportunity to see and be involved in the process firsthand, and share their perspectives below.

The recent spike in international disputes in Korea has roots that go back to the latter half of 1997, when the Asian Financial Crisis, constituting the greatest economic crisis in Korea’s history, hit the nation. The Korean government had run out of its foreign currency reserves and had no choice but to seek a substantial bail-out by the IMF. In an