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

Peers highly regard Bae Kim & Lee’s capital markets practice, while clients appreciate the firm’s dedication to finding commercial solutions. “If there are not any legal cases in Korea on our matter, the firm’s partners even study and research the cases of other countries when giving legal opinion,” says one client.

This year, the firm lost two foreign legal counsel, S Warren Kim and Michael S Lee, but hired specialist adviser, Samuel Kim, in July 2010. Though recently arrived, Kim has had an active year working with partner Young Joon Cho on the restructuring of the ship financing companies of Mediterranean Shipping Company in a deal worth US$1.35 billion.

Meanwhile, partners Hee Gang Shin and Mi Eun Roh recently advised Himart as issuer’s counsel on its IPO on the Kosdaq exchange. The IPO raised KRW419.7 billion (US$384.4 million) and completed on June 29 2011.

Peers note that Bae Kim & Lee has performed well this year, representing prominent clients such as Korea Electric Power Corporation, Korea Exchange Bank, Lotte Group and Pepsi-Cola Products Philippines. One client comments on the firm’s negotiating ability: “If Bae Kim & Lee represented our counterparty, I would feel very uncomfortable.”

In August 2010, Kevin Kap-You Kim and Minwoon Yang completed Hyundai Heavy Industries’ KRW2.6 billion (US$2.3 million) takeover of a 70% stake in Hyundai Oilbank from affiliates of Abu Dhabi’s International Petroleum Investment Company. The complex transaction, involving both a hostile context and negotiated terms, required extensive knowledge of Korean, Singaporean and UAE corporate law.

Bae Kim & Lee expanded its construction practice this year, hiring partner Dong Shin Lin and a handful of associates. It did, however, lose partner Eun Jin Jeon and foreign legal consultant Sangmoon Chang, with the latter now in-house at IBM Korea. Regardless, the firm’s practice remains regularly involved in the country’s largest deals.

Partners Hyeong Kang and Young Lok Park are advising Daewoo Electricity & Construction and a US real estate investment company in a KRW1.1 trillion joint venture to develop 94,272 square metres of land in the New Songdo City development.

In a landmark financing deal, Bae Kim & Lee is advising Lotte Electricity & Construction as a member of a consortium that includes 18 other electricity and construction companies such as Hyundai, Samsung, Posc and Dawewoo. This consortium has negotiated with the Mongolian government to create a public-private-partnership (PPP) to finance and construct railroads in Mongolia.

Bae Kim & Lee’s litigation practice, numbering over 100 lawyers, is among the largest and most prominent in Korea. This year, it added partner Chae Wong Lim, formerly a presiding judge at Seoul Family Court.

Partner Chiyong Rim represented creditor Samsung Motors in a KRW600 billion (US$531 million) judgment against Woori Bank, Korea Exchange Bank, Korea Development Bank and Citibank Korea. The litigation involved debt owed after a restructuring in the 1997-98 financial crisis. In January 2011, the Seoul High Court ordered the lenders to repay the creditors. The case is now moving to the Supreme Court and is the largest civil lawsuit in Korean history.

The firm’s international arbitration practice has grown steadily over the past year with the addition of an associate from Cleary Gottlieb Steen & Hamilton. Partner Kap-you (Kevin) Kim, head of the firm’s practice, is leading a post-M&A dispute on the sale of Daewoo Motor’s assets against General Motors (GM) after GM declared bankruptcy. The case is highly complex, involving 29 separate claims and a counterclaim, and is worth more than US$400 million.

Bae Kim & Lee’s well regarded IP practice, led by partner Hoo Dong Lee, holds steady in the rankings due to its solid work for high profile clients. Although foreign legal counsel Junghoon Kenneth Oh left the firm for a position as in-house counsel, the practice added a number of associates, one of whom was from You Me Patent & Law Firm.

In a case that showcased the firm’s expertise in IP valuation, partners Won Hee Cho and Jong Wook Lee advised US company Symphony 3D Technology on the value of its 3-D technology patents following its acquisition of Korean company Master Image.

The firm has also been involved in a large amount of patent and trade mark litigation of late. For example, partners Ki Dong Joo and Yoo Geun Lim are representing Gyeong Gi Cultural Foundation in an invalidation, cancellation and infringement suit relating to use of the name ‘Nam June Paik’, an internationally renowned Korean video artist. That suit is now pending in the Supreme Court.

Bae Kim & Lee has closed quite a few M&A deals this year in the IT, telecommunications and media space. The firm added adviser Jae Min Shin from the Ministry of Culture, Sports & Tourism but unfortunately lost partner Jung Hwan Bae, who moved to an in-house counsel role.

In a highlight deal this year, partners Gun Chul Do, Kwang Hyun Roo and Jun Kul Yoo advised TU Media on a KRW480 billion M&A deal with SK Telelink. Aside from requiring corporate expertise, the deal also necessitated regulatory knowledge.

Partners Yang Ho Oh and Kwang Hyun Roo represented Sejong Telecom on another M&A transaction when it acquired 39.34% of Onse Telecom shares in Onse Telecom from Aldex and Optom Magic, subsidiaries of Taihan Electronic Wire.

Bae Kim & Lee is expanding its labour and employment practice, adding a handful of associates for increased capability and depth. Head of practice Jeong Han Lee’s expertise is respected by clients and peers alike.

In a key dispute this year, Lee and partner Chang Hwan Lee successfully advised the National Agricultural Cooperative Foundation in several cases regarding fixed-term contracts. Employees argued that their fixed-term clauses were illegal under the Act under the ‘protection of fixed-term and part-time employees’, and that their dismissals were invalid. The firm ultimately prevailed as the court ruled that the fixed-term clause in the contracts was legitimate.

“Bae Kim & Lee has an up-and-coming shipping, maritime and aviation practice,” says one rival practitioner. Partner Jong Ku Kang heads the firm’s insurance and maritime practice group, and has drawn plaudits for his recent work in the area.

In a highlight case, the firm is advising Dongkuk Steel Mill regarding a ransom paid to pirates to rescue the ‘MV TITAN’ crew. The vessel was carrying Dongkuk Steel Mill’s products when pirates attacked. Its crew was held for ransom and the cargo was stolen. Lead partner Kang is now negotiating a settlement with the ship owner regarding the lost cargo, which was worth US$12 million.

Bae Kim & Lee’s tax practice has expanded this year, with the firm adding nine attorneys to its ranks. The additions include partner Jong Pil Kim from the Seoul Administrative Court, expert adviser Dae Seung Im from the Incheon Customs Office, and foreign legal counsel Chan Ho Lee from the Ministry of Unification.

In a highlight tax case this year, attorneys Keon Ho Lee and Seung Ho Kim represented Diageo Korea and Diageo Scotland in a Tax Tribunal against the Seoul Customs Office, which rejected the transaction value of imported goods because of the influence of related-party transactions. The original assessment of KRW206 billion was revised to KRW195 billion, but the firm filed an appeal with the Tribunal.