Our practice provides highly sophisticated legal advice on Korean financial sector regulations and the impact of globally coordinated post-financial crisis regulatory changes to the derivatives industry through our lawyers’ expertise and diverse experience in the sector. We issue legal opinions on various domestic and cross-border OTC derivatives as well as exchange-trade derivatives (KRX and other foreign exchanges) involving equity, fixed income instruments, commodities, or credits to ensure they our clients’ transactions will be in full compliance with the relevant laws. We also advise our clients on changes in international regulations on derivatives (CCP clearing, data-submission to trade repositories, margining, benchmark regulation, etc.) and their impact on domestic and cross-border derivatives transactions.
Representation of clients by our Derivatives Practice ranges in complexity from simple derivatives to structured products with complex embedded derivatives. Our services include advising on the structure, negotiation of the terms, documentation, and all necessary government authorization processes.
Generally, we assist clients in drafting or revising various standard agreements such as ISDA Master Agreements, GMSLA, or GMRA based on negotiations with the counter-party regarding schedules to be annexed to such agreements. Particularly, if such agreements are governed by foreign law, we would draft the Annex or Schedule to be effective under and in full compliance with Korean law and regulations. Also, in connection with structured finance products such as asset backed securities and credit linked notes, we draft and provide confirmations tailor-made to each product.
Our practice advises on standard agreements widely used such as ISDA Master Agreement, GMSLA, GMRA, assists in drafting and revising such standard agreement, and actively participates in various reforms of regulations which impact derivatives transactions.
Dispute Resolution and Sanctions regarding Derivative Transactions
We provide full advisory service 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 work with and support our lawyers in the litigation department in civil or criminal judiciary proceedings that involve derivative transactions.
- As an associate member of the ISDA, as well as its Korean local counsel, issue annually a legal opinion on the enforceability (including close-out netting) of the ISDA Master Agreement and Credit Support Annex (CSA) since 1997 under Korean laws.
- As Korean local counsel to the ICMA, issue annually a legal opinion on the GMRA.
- As Korean local counsel to the ISLA, issue annually a legal opinion on the GMSLA and the OSLA.
- As Korean local counsel to the FIA, issue annually a legal opinion on the Master Netting Agreement.
- Participated in the Korea Financial Investment Association’s drafting of the Korean Standard Agreement of OTC Derivatives Transactions.
- Prepared a Korea Appendix for the GMSLA, the OSLA, and the GMRA.
- Advised the Korea Federation of Banks (KFB) regarding issues on the introduction of central clearing for OTC derivatives.
- Assisted the KFB regarding setoff right issues for derivatives and the CDS master confirmation.
- As Korean local counsel to the ISDA, drafted Credit Support Annex (VM CSA, IM CSA) governed by Korean law.
- Advised major international banks and investment banks regarding derivatives, repo, securities lending transactions, and benchmark regulation.
- Advised domestic financial institutions on the introduction of collateralization by securities lending and submitted statements of opinion for the introduction of collateralization.
- Advice on the structured finance transaction based on derivatives (e.g., TRS, CDS) and representation of clients in legal disputes related thereto.
- Advice on the securities/commodities financing structure based on derivatives, repo and securities/commodities loan and representation of clients in legal disputes related thereto.
- Advice on the implementation of global benchmark regulations and assisting registration of benchmark with relevant jurisdictions.
Top Ranked in All Eight Categories and 34 Individual Recognitions - Chambers Global 20192019.02.15
Chambers Global Practice Guide - Structured Finance & Derivatives 2019: Korea Chapter2019.02.07
Highest Recognition in All 15 Categories Surveyed - The Legal 500 Asia Pacific 20192019.01.16
Top Rankings in 18 Areas and 60 Individual Recognitions - Chambers Asia-Pacific 20192018.11.30
Top Tier Across the Board for 15 Consecutive Years - IFLR1000 20192018.11.02
Kim & Chang Continues to Set Market-Leading Record with Top Rankings in All 8 Practice Areas and 34 Attorney Recognitions - Chambers Global 20182018.02.19