Anti-Corruption

Anti-corruption standards and laws are being reinforced at an ever-growing rate in both public and private sectors in Korea and in other OECD countries, including the US.  Part of this trend is the expanded protection of whistleblowers and the increasing enforcement of the laws of one jurisdiction in another, such as the US Foreign Corrupt Practices Act (the “FCPA”) and the UK Bribery Act.  

Korea also has a wide array of anti-corruption laws, including the Criminal Code, the Act on the Aggravated Punishment, Etc. of Specific Crimes, the Act on Prevention of Improper Solicitation and Provision/Receipt of Money and Valuables (the “Anti-Graft Act”) and the Act on Combating Bribery of Foreign Officials in International Business.  Notably, the Anti-Graft Act imposes corporate liability for violations of the anti-corruption provisions, making it all the more important for businesses to have appropriate compliance and internal controls systems in place.  Another recent development that strengthens the enforcement of anti-corruption laws in Korea is the establishment of the Corruption Investigation Office for High-Ranking Public Officials (the “CIO”). The CIO’s authority supersedes those of other law enforcement agencies in investigating the crimes committed by high-ranking public officials and their family members.

The lawyers and other experts in our Corporate Investigations & White Collar Defense Practice have undertaken effective defense efforts for a diverse group of foreign and major Korean companies involved in corruption investigations in Korea, many of which have potential cross-border spill-over effects.  We also regularly advise companies in assessing the risk of non-compliance and structuring and implementing balanced and effective monitoring and internal control systems which reflect unique industry needs to ensure compliance with relevant Korean laws and regulations, also taking into account the requirements under key foreign anti-corruption legislation such as the FCPA and the UK Bribery Act.

Finance/Insurance/Securities Sector Experience 

With the increased sophistication and globalization in capital markets, a robust defense strategy requires up-to-date professional knowledge of the industry and complete understanding of the highly regulated financial markets.  Our Corporate Investigations & White Collar Defense Practice has successfully represented numerous financial institutions and their officers and directors in connection with various high-profile cases.

Tax/Customs/Foreign Exchange

In recent years, there has been a greater propensity of seemingly routine tax, customs and other regulatory audits resulting in a referral to the police and prosecutors for a criminal investigation. 

As a result, a seemingly routine regulatory inquiry or audit may involve not only the relevant regulatory authorities, such as the relevant tax office, customs office, the Financial Supervisory Commission, or the Bank of Korea, but also the police and prosecutors.  Familiarity with the types of procedures conducted by these organizations is an essential part of a successful defense effort.  Over the course of several decades, Kim & Chang has accumulated unique know-how, providing highly sophisticated legal services to our clients.  Together with former government officials from regulatory agencies, Kim & Chang offers the insight and most appropriate solution to any given complex regulatory case.

Fair Trade/Antitrust/Competition

In Korea, the government has been calling for stricter standards and increased penalties in the enforcement of rules against unfair trade practices and other antitrust-related cases.  The Korea Fair Trade Commission (the “KFTC”) has increased its level of activities, and a growing number of cases are being referred to the Prosecutors’ Office for criminal prosecution.  The Prosecutors’ Office has also focused on competition law issues, as evidenced by the establishment of a department that is exclusively responsible for antitrust cases. 

Our team of lawyers and other experts, in close cooperation with colleagues from the Antitrust & Competition Practice, has provided proactive defense activities at all relevant stages and guidance on preemptive measures. 

Trade Secrets/Intellectual Property

Trade secret infringement cases have evolved from traditional disputes among competitors into more complex, cross-border disputes involving suppliers or vendors.  As such, the ability to engage in highly technological discussions has become a key requirement in understanding and resolving these matters.  Our Corporate Investigations & White Collar Defense Practice collaborates with our firm’s patent specialists to provide comprehensive and systematic defense activities from the initial investigation stage to the trial stage.

Construction/Real Estate

Criminal cases have arisen from construction cases ranging from large-scale renovations involving bid rigging to various cases involving technical industry regulations.  Our Corporate Investigations & White Collar Defense Practice has successfully conducted defense activities, and is a pioneer in this area, successfully representing clients in landmark cases, together with our firm’s litigation specialists.

Medical/Pharmaceutical Industry/Health Industry

With growing national interest in health-related industries, and the introduction of a more rigid regulatory regime, including the so-called “Dual Punishment System,” Korean regulatory authorities are increasingly monitoring and fighting what had once been a pervasive social practice – the giving and taking of rebates.  

Our Corporate Investigations & White Collar Defense Practice works closely with the medical and pharmaceutical experts in our Health Practice to appropriately address and respond to these dramatic changes in the industry.  

For more than 40 years, the Health Practice in our firm has advised the great majority of multinational firms in these sectors, from established industry leaders to newer biotech companies and start-ups. 

Environment/Plant Safety/Product Liability 

Environmental issues have become a primary focus of social concern in Korea.  Safety concerns over consumer products and observation of emission standards and other safety issues in automobiles have drawn keen interest. 

We have represented and provided strategic advice to various clients, both multinational corporations and Korean companies, in large-scale environmental issues drawing national attention. 

Labor & Employment

With the emergence of growing income inequality as an overarching social issue in Korea, the Korean government has introduced stricter standards to regulate labor-related issues, such as non-regular employees and illegally dispatched employees.  

Further, labor unions frequently request the Prosecutors’ Office to conduct criminal investigations of labor-related issues, including the use of the threat of an investigation as leverage in labor negotiations with employers.  In these types of criminal investigations, defense becomes particularly critical as individual senior executives of companies can be criminally charged.

Our Corporate Investigations & White Collar Defense Practice has provided successful defense activities with the support of certified labor consultants for companies faced with complex labor-related issues.

Compliance Audits/Reviews/Internal Investigations

With rising expectations of transparency in Korean corporate activities, preemptive and remedial measures (including internal investigations) are being called for to deal with non-compliant elements of the corporate environment.  

In recent years, the Korean government has encouraged whistleblowing by enacting and continuing to expand laws to protect whistleblowers.  The increase in whistleblowing has underlined the importance of dealing with them appropriately and proactively to manage risk.  

Our Corporate Investigations & White Collar Defense Practice has extensive experience in conducting internal investigations for corporate management, boards of directors, regional management and global headquarters.  

In addition to major, high-profile investigations that would ultimately involve interactions with government agencies, we also specialize in more focused, rapid and confidential reviews.  We understand the need to minimize the disruption to business operations and potential collateral consequences to our clients and to offer balanced and nuanced remedies. 

Our Corporate Investigations & White Collar Defense Practice also includes an unparalleled team of experienced forensics experts.  Our pool of resources enables us to engage in internal audits, reviews and investigations across a wide range of issues.  Our team includes specialists in both forensic accounting and digital forensics.  

Our firm began employing digital forensics experts more than a decade ago, and remains the only law firm in Korea with a significant pool of IT engineers with investigation experience.  They provide meaningful contributions in our investigation, compliance and criminal defense matters.  

Our forensics team works closely with our compliance and anti-corruption experts to provide our clients a total package of services, which includes digital forensic collection, data processing and review of collected data both electronic and otherwise.  In addition, based on our significant whistleblowing case experience, our Corporate Investigations & White Collar Defense Practice provides companies with strategic and practical legal and non-legal advisory services.

Privacy Laws

The Personal Information Protection Act (“PIPA”) and other privacy laws in Korea impose an extensive array of protective measures to safeguard personal information, which companies doing business in Korea may collect and use in the course of their business.  As a result, companies are facing new types of risks arising from PIPA and related violations. 

In close coordination with our Privacy & Data Security Practice experts, our practitioners have defended most of the landmark cases in this area, and provide wide-ranging and in-depth service to our clients.

The lawyers and other experts in our Corporate Investigations & White Collar Defense Practice represent many of the largest and well-known multinational corporations which operate in Korea as well as Korean conglomerates and other major companies and businesses in diverse specialized industry sectors including the financial, automobile, aerospace & defense, healthcare and IT industries.

Anti-Corruption 

• Represented officers of one of Korea’s largest conglomerates during an investigation by the Prosecutors’ Office and subsequent court proceedings regarding alleged tax evasion, embezzlement and breach of fiduciary duties. 
• Acted as defense counsel for a Korean industrial conglomerate’s executive officers, including the Chairman and CEO, regarding allegations including tax evasion and embezzlement of company funds.

Finance/Insurance/Securities Sector

• Successfully defended a US investment bank against allegations of inappropriately being appointed the financial advisor for a Korean public corporation’s acquisition of a foreign oil company.
• Successfully represented the management of a large Korean conglomerate in a case involving alleged violation of fiduciary duties relating to a leveraged buyout transaction (“LBO”).
• Represented a major global accounting firm in a criminal investigation concerning alleged failure to conduct the audit properly and detect large-scale accounting fraud. 
• Successfully represented a large shipbuilder in a criminal investigation into its alleged unfair setting of subcontract price.
• Represented a major Korean conglomerate in a criminal investigation concerning alleged violation of the Capital Markets Act, accounting fraud and other crimes to facilitate improper succession.  
• Represented major Korean financial institutions in a criminal investigation concerning alleged corruptive practices in the hiring process.
• Successfully represented a global investment bank against an allegation of non-licensed bond brokerage business, resulting in the Prosecutors’ Office’s decision not to indict.  
• Defended a major Korean company in an insider trading charge against the company and its employees and minimized the company’s exposure to criminal punishment. 
• Represented the Korean branch of a global bank in a matter concerning a potential security leak at the bank, leading to a non-prosecution. 
• Represented the Seoul Branch of a foreign bank involving alleged improper handling of structured bond products and related derivatives transactions.
• Successfully represented a multinational bank in a matter concerning alleged criminal violations of Korean capital markets laws, clearing all criminal charges for the suspected employees.

Tax/Customs/Foreign Exchange

• Successfully represented a multinational semiconductor equipment manufacturer in a tax criminal investigation and prevented a referral for criminal prosecution. 
• Represented a multinational automobile manufacturer in a customs investigation alleging improper imports. 
• Represented several multinational pharmaceutical corporations in customs investigations. 

Fair Trade/Antitrust/Competition

• Successfully defended a local retail chain in the KFTC’s investigation concerning alleged violation of the Fairness in Franchise Transactions Act.
• Successfully defended a large corporate group in a criminal investigation concerning alleged failure to properly report affiliate status.
• Represented a number of multinational corporations in a KFTC investigation and criminal investigation concerning alleged cartel and price-fixing.
• Represented a number of multinational corporations in a KFTC investigation and criminal investigation concerning alleged collusion. 
• Successfully represented a multinational corporation in a criminal investigation concerning alleged improper interference with bidding and fraud.

Trade Secrets/Intellectual Property

• Successfully represented several Korean and multinational companies in bringing criminal action against former employees and competitors that misappropriated technology and trade secrets.  
• Successfully defended several Korean and multinational companies in a criminal investigation and KFTC investigation concerning alleged misappropriation of trade secrets.  

Medical/Pharmaceutical/Health Industry

• Provided comprehensive defense and strategic compliance guidance in response to an ongoing, major overhaul of compliance standards in the healthcare industry, obtaining a non-prosecution decision from the investigative authority.
• Advised a multinational pharmaceutical company in the investigation by multiple Korean agencies regarding alleged violation of Korean pharmaceutical law. 
• Successfully defended several multinational corporations in criminal investigation concerning alleged improper sale of medial products without a license in violation of Korean pharmaceutical law.
• Successfully defended a multinational corporation in criminal investigation concerning alleged improper disposal of medical waste in violation of the Waste Management Act.

Environment/Plant Safety/Product Liability 

• Represented several major automotive companies in criminal investigations concerning alleged violations of Korean environmental laws relating to emissions and homologation. 
• Successfully represented a US-based global technology company in a criminal investigation concerning alleged product support issues. 
• Represented major Korean companies in a criminal investigation concerning explosions which occurred in plants in alleged violation of environmental laws. 
• Represented major Korean companies in a criminal investigation concerning manipulation of environment-related measurement data. 

Labor & Employment

• Represented a major automobile company in a criminal investigation concerning alleged illegal dispatch of workers.
• Represented a number of multinational corporations in criminal investigations concerning alleged unfair labor practices.

Privacy Laws

• Represented a US insurance company in a criminal investigation regarding alleged acquisition and transfer of personal information without consent in violation of the Personal Information Protection Act by its affiliate in Korea. 
• Represented the Korean branch of one of the largest providers of healthcare information in the US in a criminal personal data breach case. 
• Successfully represented a global internet portal company and its Korean branch in a police investigation regarding the alleged improper collection of credit information from Korean customers who bought applications from the company, resulting in a decision not to prosecute the company and the Korean branch.
• Represented several Korean and foreign corporations in a criminal investigation regarding whether appropriate measures were taken to prevent leakage of personal information. 
• Successfully represented a multinational company in a criminal investigation concerning alleged use of personal information without consent.

Compliance Audits/Reviews/Internal Investigations

• Conducted an internal investigation concerning allegation of bid rigging

Other Notable Cases 

• Defended executives of a Korean multinational electronics company against charges for converting properties belonging to another large electronics manufacturer and also interfering with this competitor’s business.
• Represented a foreign corporation in a criminal investigation concerning alleged provision of commercial transport without a license. 
• Represented a global social networking service in a criminal matter involving its games applications, which resulted in a decision by the authorities not to prosecute.
• Represented a healthcare product distribution company in a criminal investigation involving alleged violation of the Price Stabilization Act under the COVID-19 situation.
• Advised a global professional services company in a criminal investigation regarding misconduct concerning a project involving a government-owned energy company. 
• Acted as counsel when a competitor and malicious consumers filed a criminal complaint against a major Korean brewing company.