Kim & Chang provided legal advice to Webtoon Entertainment Inc. in connection with the listing of its shares on NASDAQ.

As of December 2023, Webtoon Entertainment Inc. led the webtoon (digital comic) market in major regions such as Korea, the US and Japan, holding the top position in each of the jurisdictions either directly or through its subsidiaries. Webtoon Entertainment Inc. plans to invest the funds raised through its IPO in technological innovation, talent acquisition and platform expansion in overseas markets.

To facilitate Webtoon Entertainment Inc.’s listing on the NASDAQ, our firm undertook the following key actions: (i) reviewed laws and regulations applicable to IPOs carried out by overseas subsidiaries of Korean companies, (ii) consulted with pertinent authorities, including the Financial Supervisory Service of Korea, (iii) reviewed the transaction documents mainly from Korean law perspectives, and (iv) reviewed various legal issues that may arise during the IPO process. Through these efforts, our firm assisted Webtoon Entertainment Inc. in completing the IPO in a successful manner.

In particular, this IPO was the first of its kind since the amendment to the Financial Investment Services and Capital Markets Act, which requires a Korean company’s overseas subsidiary to file a securities registration statement in Korea in connection with its overseas IPO. Through an in-depth analysis of applicable laws and regulations, along with close consultations with regulators, we successfully provided advice to address legal and procedural differences between Korea and the US for public offerings, thereby contributing to the successful IPO. This groundbreaking deal attracted significant industry attention, as it was unprecedented in Korea. It will serve as an exemplary case for similar transactions in the future.