Skip Navigation

Derivatives "Kim & Chang is a dominant force in the derivatives market in Korea and
continues to be involved in several notable banking and financing deals."
– Asialaw Profiles 2017


Our derivatives lawyers at Kim & Chang operate structuring and advisory work in a broad array of derivatives transactions that involve complex and innovative solutions to meet the evolving market needs and regulatory environment.  These include OTC and exchange-traded derivatives, securities financing transactions, derivative linked securities, including TRS, CFD, securities lending, repos and commodity financing solutions.  Our client base is broad and diverse buy-side and sell-side participants which include global investment banks, banks, asset managers, hedge funds, electronic trading platforms, fintech solution providers and global industry associations.

As a leading derivatives law firm in Korea, we are country counsel to International Swaps and Derivatives Association (“ISDA”), the International Capital Market Association (“ICMA”), the International Securities Lending Association (“ISLA”) and the Futures Industry Association (“FIA”). 

We have a fully integrated practice working in close coordination with our other practice areas, such as litigation and tax.  We have a strong litigation practice with industry leading track record in representing clients in the most contentious and high-profile derivatives lawsuits.  We also have the largest tax practice of all law firms in Korea and have provided innovative solutions to complex tax-driven derivatives transaction structures as well as general cross-border tax advisory services for derivatives transactions.

Key Servicesshow

Regulatory Advisory

We advise our clients on Korean financial regulations and the impact of globally coordinated post-financial crisis regulatory changes to the derivatives industry.  We have advised on various domestic and cross-border OTC derivatives as well as exchange-trade derivatives transactions (of KRX and other foreign exchanges).  We also advise our clients on how international law on derivatives (e.g., uncleared OTC derivative margin rules, CCP clearing, trade repository reporting and benchmark regulations) is implemented in Korea and their impact on domestic and cross-border derivatives transactions. 


As country counsel, we issue industry opinions on the legal enforceability under Korean law of the standard agreements widely used in the global financial markets, such as the ISDA Master Agreements, the Global Master Securities Lending Agreements (“GMSLA”), the Global Master Repurchase Agreements (“GMRA”) and the FIA agreements.


Transaction Advisory

Our lawyers in the derivative practice advise on traditional and structured products with complex embedded derivatives.  Our services include advising on the structure, negotiation of the terms, documentation and all necessary government authorization processes.  We provide a fully integrated service, which includes cross-border tax advisory.


In Korea, transactions including the derivatives elements are subject to the strictest regulatory restrictions and have drawn the attention from regulators from the perspective that parties may have the intention to circumvent existing regulations.  Therefore, to structure, draft and negotiate these type of transactions requires extensive expertise and experience and the cutting-edge knowledge on the political movement of regulators.  In this regard, we are confident that we have unparalleled position in Korea in assisting our clients on the derivatives-related transactions.  This is not only because we have skillful experts who have specialized in this area for more than three decades, but also because we have actively participated in various reforms of derivatives regulations in Korea and constantly communicate with the market and regulators. 


Dispute Resolution and Sanctions Regarding Derivative Transactions

We provide a full range of advisory services for clients that are subject to the jurisdiction of Korean regulators and are facing investigations or administrative proceedings relating to violations of regulations involving derivatives.  Our service includes in-depth analyses of the issues, development of defense strategies and advocacy of clients during the investigation and administrative proceedings.


Our practice also closely works with and supports our lawyers in the litigation department in civil or criminal judiciary proceedings that involve derivatives transactions. 

Key Experienceshow

  • As country counsel to ISDA, ICMA, ISLA and FIA, annually issued jurisdictional opinions on the international standard agreements (e.g., ISDA Master Agreement, GMRA and GMSLA)
  • Drafted the Korea Financial Investment Association’s Korean Standard Agreement of OTC Derivatives Transactions
  • Drafted the industry standard Korean Annex to the international standard agreements, such as Korean Pledge CSA, Korean Title Transfer CSA, Korean Security Agreement, and KSD Annex to GMSLA and GMRA
  • Advised the Korea Federation of Banks (“KFB”) on the introduction of central clearing for OTC derivatives
  • Advised Korean financial institutions on the introduction of title-transfer collateral under Korean law
  • Advised the Korean government by drafting the guideline on the implementation of Principles for Financial Market Infrastructures
  • Advised the KRX on the drafting of OTC clearing regulations
  • Worked with KOFIA and KFB regarding the drafting of benchmark administration business regulation and issued the assessment of compliance with the IOSCO BMR standard
  • Advised major international banks and investment banks on securities financing structure by utilizing securities lending and repos
  • Advised on the implementation of margin regulations and RFR transition 


Key Contacts


Search Professionals



레이어 닫기