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

Kim & Chang boasts tremendous depth as the largest law firm in Korea, employing over 800 lawyers. It added one lawyer to its banking and finance practice this year, hiring counsel Jinho Joo from Shearman & Sterling.

The firm’s capability handling complicated transactions means it is involved in most landmark deals in the banking and finance area. “If there is a major issue, we go to Kim & Chang,” says a client. “There’s no other law firm in Korea on its level. We might need second opinions on vague issues, but the best answer you would expect is from Kim & Chang.”

Given its reputation, it is unsurprising that the firm makes frequent appearances in transactions of considerable size. For example, attorney Myoung Jae Chung advised Hyundai Securities and Citigroup Global Markets on a KRW83.6 billion (US$78.4 million) offering by Hyundai HCN.

In another deal highlight, lawyers Young-Kyun Cho and Kyoung Ah Grace Nam advised the Korea Development Bank on a financing package extended to Pocheon Power. The deal was worth KRW1.71 trillion (US$1.6 billion), one of the largest transactions this year.

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.

Peers question Shin & Kim’s presence in the top tier, but the firm demonstrated its commitment to the capital markets area in the last year by hiring a handful of associates. The firm also closed several initial public offerings including one by Samsung Life Insurance, worth US$4.4 billion, and another by Mando Corporation, worth KRW498 billion (US$437 million).

Since it merged with Evergreen Law Group in 2010, Shin & Kim has also expanded its projects expertise. Partners Kyung Don Lee and Young-Hee Jo advised four Korean real estate funds managed by ING Real Estate Investment Management on a sale and leaseback transaction of six properties with a total value of KRW595 billion. This transaction necessitated broad regulatory knowledge as the National Pension Fund was a key investor.

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.

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.

One client notes: “Jipyong & Jisung has many offices, with particular experience in China.” The firm, which changed its name from Jisung Horizon in December 2010, is noted for its rapid expansion throughout Southeast Asia. It has offices in Shanghai, Ho Chi Minh, Hanoi, Phnom Pench and Vientiane.

Jipyong & Jisung has taken advantage of its Southeast Asian connections to participate in various landmark deals. For example, partners Haeng-Gyu Lee, Hee-Suk Chai and Eun-Young Lee led on the KRW56.3 billion initial public offering of Koalo Holdings, the first Laotian company to be listed on a Korean market index.

Attorney Jongjae Kim of Kim Choi & Lim’s banking and finance practice was especially active over the last year. He had a very busy 2010, for example, completing four financing deals and four capital markets deals.

In one key transaction, Kim advised lender Sin Young Investment & Securities on an asset-backed transaction worth KRW120 billion regarding the urban redevelopment of 1,897 residential buildings in Seoul.

Yoon & Yang maintains the firm’s close rapport with regulatory bodies by recruiting former staff members. Though the firm only added one associate, Hyun Suk Jung, in the last year, he was hired from the powerful Financial Supervisory Commission.

On the capital markets front, partner Young-Jae Shin has been quite active. In one deal highlight, Shin acted for several private equity funds in a KRW420 billion (US$380 million) sale of 3.4 million Mando Corporation shares to Morgan Stanley, Macquarie Securities Korea, and Citigroup Global Markets Korea Securities.

Although peers have questioned the future of Hwang Mok Park, the firm’s banking and finance practice continues to draw attention from domestic and international companies alike. Its impressive list of domestic clients this year includes Woori Bank, Korea Development Bank and Shinhan Bank. Partner Sang Il Park carries the firm’s banking and finance team, and is regarded by peers as one of the best lawyers in Korea.

Apex

Apex closed two highlight project finance transactions in December 2010. Firstly, partner Jong Hoon Lee advised Sambu Construction regarding a loan for KRW58 billion for repairs to the sewer system in Jaecheon City. And secondly, partners Kyu Sung Lee and Chang Young Choi acted for Doosan Engineering & Construction to secure KRW348.2 billion in financing from Korea Development Bank for the extension of the New Boondang double-track subway line.

Hankyul Hanul

Project finance was once again an important area of focus for Hankyul Hanul this past year. Partner Sangjong Choi advised developer Youngju SMC and arranger Korea Development Bank in procuring a loan of KRW88.5 billion to fund maintenance and repairs to the sewer system of Youngju City. This is a project in which a developer builds the sewer system, operates it for 20 years, and then transfers ownership back to the city.