Kim & Change advised Hyundai Commercial Inc. (“Hyundai Commercial”) on its issuance of KRW 100 billion hybrid bonds (the “Bonds”).  

The Bonds are recognized as debt securities from a legal perspective.  From an accounting perspective, however, they are recognized as capital pursuant to the K-IFRS.  Through this transaction, Hyundai Commercial was able to procure capitals by issuing capital securities and improve its financial soundness.

Kim & Chang advised on various legal and regulatory aspects of the transaction.  In particular, we undertook drafting and legal review of the transaction documents and advised on the requirements for the Bonds to be recognized as Tier II capital.