Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

Clients appreciate Lee & Ko’s solution-driven philosophy and its keen awareness of business interests. An investment banking client comments: “The firm’s attorneys are very good, and have understanding of how things play out in practice rather than theory.” The firm has added several associates on the banking and finance front, expanding its capabilities.

In a key deal this year, partners Wonkyu Han and Geen Kim represented Credit Suisse, which was advising Hana Financial Group on legal matters regarding a capital increase. Hana Financial Group secured KRW1.34 trillion (US$1.2 billion) by releasing over 34 million new shares to investors worldwide.

Partner Woo-Young Jung advised the lenders, which included Bank of America Leasing and Capital, Mizuho Corporate Bank and WestLB AG, on a US$1.68 million secured loan for the construction of a submersible drilling rig that will be owned by a Korean consortium led by state-owned Korea National Oil Corporation. This project is part of a larger market push to reduce Korean dependency on foreign oil.

Lee & Ko has added seven lawyers to its already large mergers and acquisitions practice, bringing its total headcount to over 100 lawyers full time. Although peers are conservative in their praise of the firm’s M&A work this year, its place in the top tier is cemented by the sheer volume of work completed by the practice as well as an impressive clientele such as Samsung Electronics and Korea Exchange Bank.

On April 1 2011, a Lee & Ko team led by partner Hyeong Gun Lee concluded the sale of Hyundai Engineering. Lee advised Korea Exchange Bank and eight other financial institutions on how best to proceed with the contentious sale, complicated by intense competition between Hyundai Group and Hyundai Motor Group. Ultimately, Hyundai Engineering was sold to Hyundai Motor Group for KRW4.96 trillion (US$4.96 billion).

Peers describe Lee & Ko’s real estate and construction practice as “Korea-focused”, and “very domestic”. The firm bolstered its team this past year with a handful of associates from the Judicial Research & Training Institute, as well as partner Jeong Kyoo Han from the Seoul Central Court.

Partners Hun Ko and Hyun Chan Pyun are advising Songdo Global Complex Development and Yonsei University regarding the Incheon Free Economic Zone Sondo International Complex. Yonsei University is planning a new campus on the Songdo development, which will require US$600 million in financing.

In another financing transaction, partners Hun Ko and Jin Wook Yang are representing a project company for the construction and operation of Cheongna Theme Park Golf Course in a financing deal that will be worth US$500 million. Lotte Engineering & Construction, Industrial Bank of Korea and Macquarie Bank are among the sponsors.

Lee & Ko has an enormous litigation department with well over 100 attorneys. This did not stop the firm hiring three new partners, all former judges. Lee & Ko has been involved in several large transactions this year, including one where it defended the validity of ‘Knock-In Knock-Out’ (Kiko) contracts issued by Woori Bank, Shinhan Bank and Industrial Bank of Korea in a well publicised case.

Partners Chan Ik Jang and Dong Kyu Yoo were involved in an eight-year lawsuit, which concluded in November 2010 and was considered key to interpreting and applying the Urban and Living Environment Improvement Act. In a case that garnered intense media scrutiny, the firm successfully represented a housing cooperative in an internal dispute involving 6,800 members regarding a US$2 billion price increase for a large scale reconstruction and improvement project.

Lee & Ko has one of the largest IP practices in Korea, comprising 30 IP litigators and 60 patent attorneys. Headed by partner Jae Hoon Kim, the firm’s practice is especially renowned for its technical acumen, with many of its lawyers with expertise in biology, engineering and other related fields.

Peers respect and even fear the presence of partner Young Mo Kwon in disputes. “He is one of the toughest litigators. I never want to meet him in a court room again,” says one practitioner.

In one highlight case, Kwon and partner Young Sun Jung advised Recordati Ireland, an Italian pharmaceutical company, and LG Life Sciences regarding the generic status of high blood pressure drug Zanidip. LG Life Sciences is the sole licensed distributor of Zanidip in Korea and, together with Recordati Ireland, it filed suits against pharmaceutical companies who were making and selling generic versions of the drug. In their defence, the defendants filed a suit alleging that the patent was invalid. This case will force the Supreme Court to set a standard regarding patentability of new crystal forms of publicised compounds.

In a highlight technology-related case, partners Jae Hoon Kim and Sung Chang defended Baiksan OPC, a manufacturer of after-market recycled drums for laser printer cartridges, against a patent infringement claim filed by Canon. Baiksan then filed a patent invalidation claim, alleging that Canon’s patent should be invalid for lack of novelty.

Lee & Ko has enjoyed a stellar year, and was involved on the largest IT, telecommunications and media deals in Korea. Peers and clients alike highly recommend lead partner Hwang Bae Park as a specialist practitioner in this area.

In the firm’s most important deal this year, Park and partner Yu Jin Kim advised CJ Group and On Media in their merger, which created the largest all-integrated media content company in Korea. The complex and unprecedented M&A deal comprised three Kosdaq-listed companies, one Kospi-listed company and two private companies worth a total of KRW1.1 trillion (US$1.1 billion). The deal required favourable rulings from regulatory bodies, particularly the Korea Communications Commission (KCC).

Park and partner Hwang Kyoung Ko also represented SK M&C, the largest Korea-based marketing service provider, to prove the legality of targeted web advertising to the KCC.

Lee & Ko has acted for an impressive list of clients this year, including Deutsche Bank Group, Pfizer, GE Aviation and Blizzard. Though partner Seung Kyu Lee left the firm to become a court judge, he was replaced by new hire, partner Tong Keun Seol.

Peers appreciate the firm’s expertise in the labour and employment space, especially head of practice Chu Wan. “He’s knowledgeable and has a lot of experience,” says one practitioner.

A highlight was the firm’s handling of Deutsche Bank Group’s replacement of traditional severance packages with retirement pension plans in order to provide greater stability for Korean employees upon requirement. The complex change required collective bargaining with several parties, including labour unions, and reporting to government authorities.

Partners Wan Joo, Tong Keun Seol and Seung Jae Lee also advised Pfizer Korea on reaching a settlement regarding employees committing illegal acts and filing lawsuits against the company. The Lee & Ko team managed to negotiate a settlement to the dispute.

Lee & Ko’s shipping, maritime and aviation practice retains its top tier standing this year, although it is known to be stronger on the aviation side. Clients are particularly impressed with partner Jin Young Jung. “He and his team are a dominant power in all aspects of this area,” says one.

Jung and partner Tae Soo Jung are acting for Korea Line in its US$100 million insolvency. After rehabilitation proceedings were secured, the firm worked with other law firms internationally to ensure that Korea Line ships are not arrested at ports and that the stay order from the Korean court is internationally recognised in countries such as the UK.

In another important liability case, Jung is representing Air France regarding damages from its 2009 aircraft crash in Brazil. A Korean family is asking for more consolation fees from the airline than required under Korean law, and the matter is in court.

This firm has an enviable list of clients including Korea Electric Corporation, SK Energy, Hanjin Group, McDonald’s Korea, Lotte Department Store, Posco, Epson Korea and Korean Air.

Attorneys Mee-Hyon Lee and Young Uk Park are handling a high profile dispute regarding the taxation of aircraft through sale and leaseback transactions for Korean Air. In these deals, titles to the aircraft are transferred to the financial investor by an aircraft lease agreement. When the lease ends, the airline retains ownership of the aircraft. This US$2 million case will set a precedent on whether financial investors, who have ownership in name only, should pay acquisition tax. It could affect future aircraft acquisition deals in Korea.