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

Yulchon has greatly expanded its international presence in the banking and finance practice area. In May 2011, the firm opened an office in Beijing, representing its third overseas office in the last four years. It also has offices in Ho Chi Minh City and Hanoi. “The firm’s capabilities are on a par with, or even better than, the other international law firms,” says a client.

Peers refer to Yulchon’s improving reputation, particularly in the capital markets space. Partners Tehyok Daniel Yi, Sung Hoo Park and Gun Kim advised Samjong KPMG Investment Advisory on the issuance US$100 million new shares of Sterling Savings Bank, particularly on how the issuance might affect the bank’s Korean investors.

Yulchon’s growing mergers and acquisition team is attracting interest in the Korean market. The firm handled three transactions valued at more than KRW1 trillion this year and lured partner Tae Yong Ahn from Kim & Chang.

Another outstanding partner is John KJ Kim, who is licensed in New York and specialises in cross border transactions. “We see him as more than just a partner when we need legal counsel on deals,” says a client.

This year, Yulchon advised Honam Petrochemical Corporation on its acquisition of 73% of the shares of Titan Chemicals, the largest petrochemical company in Malaysia. Partner Hee Woong Yoon led the deal, worth US$1.27 billion. It was one of the largest cross border mergers and acquisitions transactions that a Korean company had ever taken part in, and demonstrates Korean companies’ eagerness to enter the international energy market.

“A major player in the real estate area,” says one peer of Yulchon’s construction and real estate practice. Led by partner Bong Hee Han, who garners praise from practitioners and clients alike, the practice has been involved on a large number of international real estate deals this year. This includes transactions in Sao Paulo, San Francisco and Kuala Lumpur.

Partners Bong Hee Han, Tae Jin Cha and Hui-Yeon Kim devised an innovative structure for the financing of Daol Fund Management’s US$333 million acquisition of an office building in San Francisco, which was the largest real estate deal in the city since 2007. The financing structure was two-tiered, involving a complicated series of corporations for tax purposes as well as a foreign-exchange hedge and an interest-rate swap.

Yulchon has expanded its associate capabilities in the dispute resolution area, hiring six between February and March 2011. The firm’s partners are highly recommended by peers, with one saying that Sae Youn Kim is “very professional and very courteous”.

In Yulchon’s largest case this year, partner Yong Sup Yoon, head of the firm’s civil litigation practice, advised Korea Hydro & Nuclear Power regarding the bidding process for the New Uljin Nuclear Plant, worth KRW1.4 trillion (US$1.2 billion). After the electronic bidding system broke down, Yoon worked with interested consortiums to construct a legal solution in order to fairly conclude the successful sale of the contract.

Yulchon’s IP practice boasts a large number of prestigious clients, which is impressive given that the practice itself only comprises only two patent attorneys led by partner Young-Hill Liew.

In the firm’s most prominent IP transaction, Liew advised the Korea Electric Power Corporation on a dispute with Delta over fuse box seals. Delta alleged that the seals manufactured by KEPCO infringed on its design. It was discovered that the registered design was similar to one in the public domain, and the patent was declared invalid.

Peers note Yulchon’s close relationship with various regulatory agencies, and the firm acts frequently for the Korea Communications Commission (KCC).

The firm also advises corporations on disputes relating to IT, telecommunications and media. For example, partners Yong-Sup Yoon, Kwang-Bin Park, Sae-Youn Kim Kyong-Yeon Kim, Hee-Joong Lee and Seung Jae-Lee advised GS Caltrex on civil and criminal claims brought by 11 million customers after an employee stole personal information with the intention of selling it. The court determined the company was not liable for the theft.

Yulchon’s labour and employment practice has excelled this year under lead partner Hee-Chul Kang.

In a landmark case, partner Il Bong Moon advised the Korea Railroad in a case involving KRW14 trillion in damages for an illegal strike organised by the union. The dispute was over how to calculate damages resulting from illegal strikes. The Supreme Court of Korea ruled that damages could be calculated based on expected earnings from projections of past earnings.

The firm also dealt with a case involving the termination of employment. The employee was alleged to have infringed internal intellectual property issues, and the case required both intellectual property and employment law expertise.

Yulchon’s shipping, maritime and aviation practice works closely with its strong project finance practice, and highlight deals usually involve either the financing or securitisation of vessels. The firm’s multi-disciplinary approach is a big hit with clients.

In one of the largest transactions this year, a firm team led by partner Christopher Cho advised lenders Korea Development Bank and Korea Finance Bank on a US$180 million financing deal for two vessels that will be chartered to DK Maritime, a subsidiary of Korea Line and Daewoo Shipbuilding & Marine Engineering.

Cho also represented Jeju Air on the sale of its four Q-400 aircraft to Aerovias de Integracion in a transaction worth US$50 million. The firm provided help in negotiation and documentation on a deal that involved the last four propeller-driven planes in Korea.

Yulchon has successfully advised a number of high profile clients over the last year in the tax area. Partner Sai Ree Yun heads the firm’s tax group, which welcomed new hires such as consultant Jeong Ki Park from Jongro District Tax Office and senior adviser Hongki Kim, a former judge in a tax tribunal. The firm also added John Jangwoon Kwak, a foreign attorney from Ernst & Young.

In an ongoing high profile case, partner Dong Soo Kim is acting for three multinational companies that are appealing tax authorities’ rejection of refund claims for stock compensation costs charged back to their Korean subsidiaries. This dispute is in relation to the Corporate Income Tax Act Enforcement Decree, which allows for tax deductions for charge-back of stock option costs for a parent company.

Lead partner Sai Ree Yun also represented Coca-Cola Korea in a National Tax Tribunal regarding the cancellation of a VAT of KRW9.8 billion for marketing costs. Coca-Cola Korea argued that it had worked with its Korean subsidiary, Coca-Cola Korean Bottling Company, and was thus exempt from VAT.