Insights

• Opportunities for activist investors in Korea are expanding, but as an ongoing dispute involving LG shows, corporate succession disputes involving chaebols can be a source of risk.
• These family struggles can lead to attempts at corporate changes that conflict with the interests of minority shareholders.
• Investors and activists should understand the risks and their options by working with international counsel to protect their rights.

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• Korean banks are holding an increasing amount of non-performing loans, putting their financial health at risk.
• For many with large portfolios exposed to cross-border unsecured debt and loans to high-yield borrowers, sale and write downs may not be optimal.
• A cross-border strategy to monetize their claims could offer a superior alternative.

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• Aggressive antitrust enforcement is a priority for the U.S., both at home and abroad.
• Korean companies are on the radar, particularly with alleged procurement fraud, putting them at risk of massive fines and multijurisdictional investigations.
• We explain the risks and responses Korean companies should consider.

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• The South Korean Police are expanding their extraterritorial activities, with many multinational companies now in their sightline.
• Many companies are unfamiliar with handling Korean inquiries and investigations, but their next steps can be crucial to risks to their business.
• Our cross-border team explores strategies to help companies mitigate their risks and stand up to prosecutorial overreach.

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• 2023 has continued a trend of increasingly energetic shareholder activism in Korea.
• The most recent annual general meeting season has shed light on the paths activist investors can take to increase their chances of success.
• Our team explores the main takeaways and lessons learned from the season.

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• Recent developments in the Korean legal landscape have been in activist investors’ favor, opening new opportunities to assert their rights and interests in Korean companies.
• Still, the intricacies of the Korean market and the dominance of chaebols mean investors should still tread carefully.
• Creative strategies that navigate these complexities can bring investors the greatest chances of success.

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• More Chinese companies are entering the Korean market, running head-on into family-owned conglomerates known as chaebols.
• In a dispute, the overwhelming dominance of chaebols and the intricacies of the Korea legal market make it hard for Chinese companies to find a way out.
• However, by combining creative legal and PR strategies, Chinese companies can put pressure on their competitors and protect their business interests.

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• Korean and U.S. antitrust enforcers are working ever closer together in investigating potential anticompetitive behavior.
• Korean companies are at risk – even conduct based entirely in Korea could be scrutinized.
• We look at the enforcement hotspots and how Korean companies can deploy an effective multijurisdictional defensive strategy.

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• The Korean corporate landscape is becoming more favorable for activist campaigns.
• Foreign activist investors have new opportunities to push for change and maximize value, even against the biggest chaebols.
• Our team explains what these developments mean and how investors can take advantage.

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• Recent developments in Korea have made Korean chaebols attractive to overseas activist investors.
• However, the intricacies of Korean capital markets and legal practice, and the influence of chaebols, mean investors need to tread carefully.
• Only by engaging in creative strategies that consider local and overseas factors can investors have the greatest chance of maximizing shareholder value.

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• South Korea and U.S. antitrust regulators are increasing collaboration in cross-border matters, with the Biden administration gearing up enforcement.
• Potential targets include South Korean companies that conduct business with the U.S. Forces Korea (USFK).
• Our team explains why an aggressive, multi-jurisdictional defense is necessary to mitigate the risks

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• Minority shareholders of South Korean industrial conglomerates, or “chaebols,” have had few ways to protect their interests against controlling shareholders.
• However, with the passage of new amendments to the Korea Commercial Code (KCC), minority shareholders have gained new tools to even the playing field.
• Our Claim Monetization and Dilution team looks at the key changes and implications that minority shareholders and activist investors should know about.

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• South Korea is an attractive destination for investors in private equity and venture capital, but the country’s changing disclosure rules could risk a drawn-out government investigation.
• Recent changes, designed to relax disclosure for most investors, adds complexity that could be used by the government against international investors to protect domestic companies.
• International parties investing in a Korean company can and should anticipate this risk in a way that maintains both independence and confidentiality.

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• A recent meeting between antitrust enforcers from South Korea and the U.S. signals an increase in future collaboration between the U.S. Department of Justice (DOJ) and Korea Fair Trade Commission (KFTC) on cross-border criminal antitrust enforcement.
• A greater degree of DOJ-KFTC collaboration will result in increasingly complex multinational antitrust litigation.
• When these enforcers take collaborative actions, targets will require equally coordinated defense strategies - likely combining the knowledge of both Korea and U.S. antitrust specialists.

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