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법무법인 상상

Winter 2013 Issue 2


[Legal Briefing on Capital Markets in Korea]


Report on Collective Investment Scheme under Financial Investment Services and Capital Markets Act II

- Details on registration of foreign collective investment scheme at the FSC

Young-Joo Ashley Ahn

The capital market in Korea has expanded greatly over the recent decades as many foreign investors and funds entered into the market. As over 134 foreign collective investment schemes for the professional investors have registered with Financial Services Commission (FSC), regulation of these schemes have become essential to prevent and protect the domestic investors from unknown risks due to difficulty in accessing information that are only available in foreign markets, without proper regulations. Thus the authorities have required similar qualification requirements as well as registration and authorization obligations on foreign schemes as to the domestic funds, under Article 182 of FISCMA.


[Legal Issues]

Duty to File Change in Ownership of Block Shares
Sangmi Jo

With the recent increase in foreign investments in the listed-corporations in Korea, increasing number of foreign companies and investors has raised issues regarding the reporting duty and penalties related to the bulk ownership. Following the increasing inquiries, this issue will introduce the newly revised and amended regulation on the Duty to File Change in Ownership of Block Shares as well as the penalty for failure to such duty.


[FAQ: Corner on Korean Law]

Liquidated Damages v Punitive Damages in Commercial Transactions
Moon-Hee Yoon

Q: Company A, a company incorporated in Delaware, U.S., executed a share subscription agreement with Company B, incorporated in Seoul, Republic of Korea (“Korea”), to acquire newly issued fifty thousand shares of Company B, with a clause stating: if Company B does not issue accordingly to the agreement, then Company B shall pay two hundred million Korean Won to Company A as a “breach of contract penalty”, where the agreement is governed and construed by the laws of Korea. Thereafter, Company B does not issue new shares to Company A as agreed, but refuses to pay the agreed penalty claiming that such penalty is excessive. In such circumstances, will Company A be able to claim the “breach of contract penalty” to Company B under the contract?

 



Lee, Kim & Yoon was founded in April of 2007 by young and enthusiastic attorneys who have gained years of experience in corporate law and corporate financing at major law firms and multinational corporations in the heart of financial district in Korea, Yeouido. With the motto "adding value to your business", lee, Kim & Yoon has gained and developed trust and value over the years by representing many domestic and foreign multinational corporations in the areas of corporate, corporate finance, M&A, IPO, Litigation, and Foreign Investment. It is the belief of Lee, Kim & Yoon that the clients are best served when supported by highly dedicated attorneys providing acute legal knowledge at a cost-efficient and expeditious service.


 

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