Press Coverage

Providing legal advisory services for global corporate growth, including technology protection, certification, and ESGKTNF (KTNF), a domestic server specialist, has strengthened its response in the legal sector, including protection of proprietary technology and trade secrets, and ESG and environmental advice. KTNF announced on the 9th that it signed a one-stop legal advisory business agreement (MOU) for technology protection and growth with Daeryun Law Firm. This agreement includes overall legal advice, including ESG and environmental advice, as well as KTNF's technology protection and certification, and trade secret protection. In addition, Daeryun plans to provide advice on internal human resources, labor, and tax matters as well as advice on resolving legal disputes. KTNF is a domestic company that specializes in developing and manufacturing various domestic servers such as x86 servers, security servers, AI/big data servers, edge servers, and ODM servers through continuous research and development since its founding in 2001. It has a clean room manufacturing line capable of manufacturing 100,000 units per year and is contributing to the development of the domestic computing industry by overseeing the government's server development tasks through its own technology. KTNF expected that the MOU with Daeryun would strengthen its contract and risk review capabilities for strengthening its domestic position in the server market and expanding its overseas expansion. Daeryun has recently expanded and reorganized the corporate legal group and intellectual property rights group by recruiting a large number of lawyers who were former patent court judges and lawyers from finance and AI-related companies, and is focusing on preparing measures to protect intellectual property rights (IP) of IT companies. Lee Jung-yeon, CEO of KTNF, said, “The Coreridge server developed with its own technology has been recognized for its technology and stability by obtaining various global certifications and being designated as an innovative product by the government. Based on this, we are aiming to become the world's best in the server market and become a global company. “Daeryun is the best law firm to provide continuous one-stop legal services with experts in various fields such as intellectual property rights, international litigation, and finance as well as general corporate advisory,” said Daeryun CEO Kim Kook-il. “We will assist KTNF, the representative of a domestic company, as closely as possible to quickly resolve various legal issues that arise during overseas expansion and business performance,” he said.  [View full article] E-Newspaper - KTNF signs one-stop legal advice MOU with Daeryun Law Firm (Go here) IT Daily - KTNF and Daeryun Law Firm sign a one-stop legal advice MOU (Go here)

A tip-off that Chairman Kim Hyun-jae of the real estate investment platform company 'K Samheung' committed an investment fraud worth hundreds of billions of won was reported on JTBC's 'Case Manager' today (8th). Since its establishment in 2021, K-Samheung, where Chairman Kim Hyun-jae is currently serving, has been promoting the company through the media and recruiting investors. The investment method they have proposed is 'land compensation investment'. The plan is that K Samheung will pre-purchase the land to be developed by the government or local government, receive compensation once the development is confirmed, and share the proceeds. Regarding the selection of the investment site, it is said that the land to be purchased by the government can be predicted through 'big data' analysis technology and that it has advertised that it has brought in experts from 'Google'. In particular, regarding the profits, etc., it promised 'principal guarantee' and 'dividend income of more than 2% per month' (profit of more than 24% per year). One damaged investor. He claimed, “Dividends and principal were coming in regularly, so most of the profits were reinvested,” and “Since last March, the money has suddenly stopped running out, so I reported it to the police.” Who is Chairman Kim Hyun-jae of K Samheung?...'A convicted real estate fraud convict' In the early 2000s, Chairman Kim Hyun-jae, who was the chairman of Samheung Group at the time, is known to have embezzled tens of billions of won using the 'planned real estate' method. Planned real estate is a fraudulent method of buying land in a certain area, dividing it into small pieces, and then selling it back to investors by making false or exaggerated advertisements such as 'land with good news for rising land prices.' In the early 2000s, he hired telemarketers to recruit investors by making up or exaggerating good real estate news, and later made huge profits by reselling properties purchased at low prices. As a result, Chairman Kim Hyunjae was put on trial on charges of embezzlement of 24.5 billion won and sentenced to three years in prison. Looking into K-Samheung... 'Capital of 1 million won, operating loss of 75.3 billion won' K-Samheung was founded by Chairman Kim Hyeon-jae after leaving prison. The victims' investors claim that although it advertised a real estate investment business, 'there was no substance'. In fact, according to the Small and Medium Business Status Information System, K Samheung was established with a capital of 1 million won, and recorded an operating loss of about 75.3 billion won last year. It is about three times the amount of the previous year (KRW 24.8 billion). The affected investors claimed, “It is highly likely that the investment money was being diverted elsewhere rather than being used for land purchase costs.” They also said, “We have not even received a proper explanation of how the profits will be paid or how the money will be raised.” According to the affected investors, the current amount of damage identified is about KRW 130 billion. In particular, one victim investor claimed to the ‘Case Manager’, “There are at least 1,000 victims, and the damage is expected to exceed 300 billion won.” K Samheung's side said, "I can't contact Chairman Kim Hyunjae... I have nothing to say." The Seoul Metropolitan Police Agency's Financial Crimes Investigation Unit is investigating Chairman Kim Hyunjae and other company executives on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Act on Regulation of Quasi-Receipts. Choi Hyun-deok, lawyer at Daeryun Law Firm, said of K Samheung's alleged fraud, "The mere fact that he said 'principal guarantee' and 'we will pay differential returns of about 80-250%' is intentional in the fraud case. In addition, he pointed out, "The victims used the IOU, but since they used it as a corporation without a joint guarantee, there is a high possibility that they will not get their money back if the corporation is dissolved." In relation to this, a high-ranking official of K Samheung said to the 'Case Leader', "We understand that Chairman Kim Hyun-jae is seeking a way to raise the proceeds," but added, "We have no contact with (Chairman Kim) and we have no information on his whereabouts."  [View full article] - [Saban Report] ‘Suspicion of fraud of 300 billion won’ K Samheung Chairman Kim Hyeon-jae... Even executives and employees “don’t know their whereabouts” (link)

Recruiting experts in military cases, building a nationwide network, and overseeing cases from former military judges with experience resolving internal military cases... MOU signing was also active. Headquarters control tower provides uniform legal services to local military units through organic cooperation. Daeryun Law Firm announced on the 9th that it will provide systematic legal services related to the military by strengthening the Defense Military Group, which specializes in military cases. The Defense Military Group provides legal services by forming a professional team of 3 to 20 people in each field depending on the size of the case. Daeryun recently led the group leader, attorney Kim Young-soo. A large number of military lawyers were recruited. The strategy is to increase the success rate by having a veteran expert with experience in internal military cases oversee the case. Attorney Kim Young-soo (13th military judge) is a former head of the Navy's legal affairs division, chief military court, and deputy general judge of the High Military Court, and has held key positions in the military, including the head of the Navy's High Prosecutors' Office and the director of the Naval Human Rights Center. Attorney Kim has handled major military criminal cases such as bribery cases and sexual assault cases within military units, as well as retirees' pensions. He has led unprecedented lawsuits, including group lawsuits related to underpayment. Together with Attorney Kim, Attorney Seo In-ho (16th Military Judge Advocate), a former military judge and legal staff member of the Army, will lead the dedicated team as a talented person with diverse experience, including military judge of the 3rd Corps (Inje) and 5th Corps (Pocheon), after working in the legal office of the Army Headquarters and the Joint Chiefs of Staff. Attorney Seo is the legal staff member (Chief of Prosecutors) of the 30th Division and the 3rd Corps. He served as a military rights advisor and chairman of the Special Deliberation Committee on National Compensation at the Army Headquarters. We specialize in military-related cases, including disciplinary action related to adultery between married people, disciplinary action for drinking, and various disciplinary cases such as disobedience to orders, failure to comply with instructions, and violation of decency. In addition to Attorney Kim and Seo, the National Defense Military Group includes the Chief of Legal Affairs at the 5th Air Mobility Wing of the Air Force, Younghyeong Kim (7th Class), a former Air Force military prosecutor, and the Chief of Legal Affairs at the 1st Marine Division, who served as a Navy legal officer. Military lawyers such as Kim Gyeong-deok (7th class), Ji Eun-hye (7th class), a former consulting attorney at the Army Logistics Support Command, Choi Hyeon-deok (8th class), a former Air Force disciplinary investigator and litigation officer, and Park Yong-heul (9th class), a former military prosecutor and head of the legal department at the 3rd Army Military Academy, join to systematically respond to military cases. He has successfully led a number of military criminal cases, including ▲ assault cases of junior soldiers, ▲ military sexual crime cases such as forced molestation and rape, ▲ superior officer insult cases, and ▲ military service law violations. With the recent revision of the Military Court Act, some military crimes, including sexual violence crimes, are investigated by civilian investigative agencies rather than military units and are tried in civilian courts. With the abolition of the High Military Court, judgments on factual trials must also receive legal judgment from outside professional judges, not from the military. However, in the case of disciplinary procedures, the consensus in the legal community is that they are conducted within the military unit and require the help of experts, such as the formation of a committee. Regarding this, lawyer Kim Young-soo explained, “Disciplinary members are not legal experts, and ordinary officers working in the unit become disciplinary members,” and “This is why communication from experts who know the atmosphere of the field is necessary.” The National Defense Military Group is strengthening its expertise and expanding its scope by linking a number of military-related cases, such as defense industry corruption, military secret cases, and IT business state contracts, with the corporate legal group. The plan is to provide optimal legal services through systematic collaboration between military lawyers and corporate legal experts. We are also actively developing military-related business agreements to expand the Defense Military Group, and signed a legal advisory MOU with the Korea Military Industry Association last month. Attorney Kim said, “Due to the special nature of the military, since there are military units across the country, the national office must move organically and work as one team.” “I will do it,” he said, expressing his ambition. [View full article] Asia Economy - Daeryun Law Firm forms a team of lawyers specializing in strengthening the National Defense Military Group (Go here) Jose Ilbo - Daeryun Law Firm strengthens the National Defense Military Group... A team of military attorneys responds quickly (click here)

The composition of the members who will lead the Gyeongbuk Autonomous Police Committee for the next three years has been completed. Gyeongbuk Province announced on the 9th that it will recently complete the composition of the members of the 2nd Autonomous Police Committee and hold an inauguration ceremony on the 20th. In accordance with related laws, the Autonomous Police Committee of each city and province is composed of a total of 7 members based on the nominations and recommendations of the governor, provincial council, superintendent of education, National Police Commission, and member recommendation committee. Gyeongbuk Province Governor Lee Cheol-woo was appointed chairman of the Autonomous Police Committee. Attorney Son Soon-hyuk (Chief General Counsel of Daeryun Law Firm), who served as Deputy Chief Prosecutor of Daegu High Prosecutors' Office and Chief Prosecutor of Busan and Daegu District Prosecutors' Office, was appointed. The remaining six members of the recommendation committee are: ▷ Park Doo-jin, former director of Hwarang Education Institute, ▷ Park Joo-young, professor of law at Andong University, ▷ Bae Seong-hoon, former head of Gyeongbuk headquarters of Maeil Shinmun, ▷ Son Young-jin, former Daegu The Dongbu Police Station chief, Jeon Jeom-sook, advisory member of the Pohang City Council of the Democratic People's Republic of Korea, and Jegal Don, professor emeritus of public administration at Andong University, were recommended respectively. The gender ratio of the nominated and recommended members is 5 men and 2 women, with the ratio of female members being 30%. The occupational groups include two professors, one each from lawyers, journalists, education, civic groups, and police officers. The Secretary General of the Autonomous Police Committee is elected at a meeting among members after the inauguration ceremony. Governor Lee said, "As the next Autonomous Police Committee is comprised of exemplary experts in various fields, we expect that local public safety services will be further improved."  [View full article] - The composition of the 2nd Gyeongbuk Autonomous Police Committee members has been completed... Launching ceremony held on the 20th (link)

Caregiver A was sentenced to 3 years and 6 months in prison in the first trial → 5 years in prison in the second trial. Hospital director's fine increased from 20 million won to 40 million won. A caregiver in his 60s who inserted a piece of sanitary pad into the anus of a patient admitted to a nursing hospital because of difficulty in handling bowel movements appealed against the first trial ruling, but the sentence was increased in the appeal trial compared to the original trial. According to the legal community on the 7th, the Incheon District Court's Criminal Appeal Division 2-3 (Chief Judge Shin Soon-young) overturned the lower court's sentence of 3 years and 6 months in prison for Mr. A, a Chinese national caregiver who was arrested and indicted on charges of violating the Welfare of Persons with Disabilities Act, and sentenced him to 5 years in prison. In addition, Mr. A was ordered to restrict employment at institutions related to the disabled for 10 years. The appellate court overturned the original judgment that sentenced Mr. B, the hospital director, who was also indicted on charges of failing to properly manage and supervise the nursing hospital, to a fine of 20 million won and sentenced him to a fine of 40 million won. From the end of April to early May, Mr. A performed sanitary sanitation on the anus of Mr. C, a brain lesion patient, at a nursing hospital in Namdong-gu, Incheon, on several occasions. He was arrested and indicted on charges of inserting 10 pads. As a result of the investigation, it was revealed that Mr. A committed the crime by cutting the pad used on the hospital bed. During the investigation, the defendant, Mr. A, claimed that “Mr. C had to change his diaper frequently because he had loose stools,” and “I inserted a piece of the pad into his anus to make it easier to dispose of the stool.” In the end, Mr. C suffered from anal fissures and defecation dysfunction, and his condition worsened, so he was transferred to a university hospital. Mr. C’s legal representative evaluated the victim’s physical evaluation and Based on the medical record analysis, it was proven that Mr. C suffered great physical and mental pain due to Mr. A's crime. In addition, it was proven that appropriate measures were not taken against Mr. B, who had neglected the management and supervision of Mr. A, after the first crime. Daeryun Law Firm, the legal representative of Mr. C, said, “The caregiver who was supposed to care for the patient with all sincerity abandoned his duty and committed an inhumane act.” He added, “We are also proceeding with a lawsuit for compensation for the victim’s damages. We plan to do our best to ensure that the victim receives appropriate compensation for his or her pain.”  [View full article] Edaily - A caregiver and hospital director who put pads in a patient's anus have their sentences increased on appeal (link) The Fact - A caregiver who put a sanitary pad on a patient's anus has their sentences increased on appeal... 3 years and 6 months → 5 years (Shortcut) Roy Issue - Sentence increased again on appeal for caregiver and hospital director who put pad in patient's anus (Shortcut) Yonhap News - Caregiver who put sanitary pad in patient's anus... I appealed and the sentence was increased again (Shortcut)

④"No more 'sour rice cake sentences'" Seoul Administrative Court's simple language ruling 'eye-catching' "It will also help improve judicial credibility" "Even if it did not violate the law, I have a request and request from the plaintiff student.", "It would be difficult to tell a very young adolescent student to control his emotions like an adult, right? The judges in this case also had such times, and the same goes for other adults." This January, the Seoul Administrative Court The 11th Administrative Division (Chief Judge Kang Woo-chan) ruled in favor of the plaintiff in a lawsuit to cancel dispositions such as service hours, and unlike general cases, 'the contents of the judgment and instructions summarized in simple language for the juvenile plaintiff' were specified in a boxed form in the judgment. At the time, Chief Judge Kang said, "The person involved in the case is the plaintiff student himself. In order to become a mature adult who can take responsibility for his own life, he must fully know and understand what is happening to him and what the results were, and learn something from it," and did not spare words of advice and encouragement for the plaintiff who will read the verdict beyond the simple sentence. The 11th Administrative Division, led by Chief Judge Kang, was also the first to attempt the 'Easy Read Judgment' for the hearing impaired. According to Asia Today's coverage on the 7th, the search for a court that will take the lead in writing judgments easily, like the '11th Administrative Division', has begun at the court level. The National Court Administration posted a notice on the court's internal Courtnet last month and is recruiting judges to participate in the implementation of appropriate judgments by the 24th. This is good news that has come out since the start of this magazine's 'Let's Write Judgment Easily' project series. In the future, the National Court Administration will △ single cases in civil and domestic affairs and their appellate cases (including civil small claims cases) △ cases with relatively low appeal rates and reversal rates (loans, third party objections/claim objections, sale proceeds, transfer proceeds, distribution objections) △ cases with a large number of cases and relatively stereotyped cases. We are working on optimizing the writing of concise and easy-to-understand judgments only for cases (delivery and demolition of buildings, cancellation of fraudulent acts, compensation for automobile accident damages, and rental deposits). An example of the previously discussed 'adjustment of civil and domestic affairs judgments' is also attached to this notice. △Writing in a modified or enumerated form instead of a complete sentence △Omitting the basic facts and listing only the issue and judgment about it △Replacing basic and acknowledged facts that are not in major dispute with a separate page △Replacing the claims of the parties with a title △If there are many items claimed, organizing them in a table and simply writing them down. Based on this, it seems that even more creative methods will be discussed. An official from the National Court Administration said, "If you write in sentences for completeness, “There are a lot of conjunctions such as ‘but’, ‘however’, and ‘and’, and we plan to optimize them by listing them in the form of a report,” he explained. “Since there are only subjects and predicates, it will be easier to write and readable for readers.” In the legal community, it is pointed out that the optimization of judgments that the court is attempting to do should not only aim to reduce the burden of judges’ work, but should also take into account the aspect of improving judicial access for the general public. Even though there are objective and neutral terms that are familiar to the general public, there is a need to avoid using difficult Chinese terms and establish a comprehensive standard and system for this. Attorney Yujin Moon (representative attorney of a trial law firm), who was a judge, said, "When I was a judge, I said in court that 'the trial has been renewed' while conducting a trial, but explained 'It means that the trial has been reviewed again because the judge has changed.'" Also, in the ruling, he said, “I think it is easier for the general public to use the simpler expression ‘rights were taken away’ rather than ‘rights were taken away’,” he said. “In the end, the court needs to create standards that can change the difficult terms currently being used into familiar and easy-to-understand terms.” Therefore, it is emphasized that outdated legal terms should be revised legislatively and that judges should make an effort to keep sentences as short as possible in their rulings. Na-ri Park, a former judge and chief general counsel at Daeryun Law Firm, said, "It is also called a 'Silutteok sentence', and it would be good to avoid the structure of paragraphs that overlap several sentences (in severe cases, exceeding one page) in the manner of 'If you put point, point, point, point together, it is judged that ~'." Park continued. The lawyer said, "I think the attempt to write a short and easy-to-understand judgment is very positive," and added, "If the court makes an effort to write a judgment that takes the people's position into consideration, I think it will help improve the people's judicial trust in the court."  [View full article] - “Short and concise”… Signs of change within the judiciary

On April 25, the Constitutional Court ruled that the reserved portion system, including Article 1112 of the Civil Act, was partially unconstitutional and inconsistent with the Constitution in a review and constitutional appeal. “Brothers and sisters’ inheritance is unconstitutional.” The Constitutional Court ruled that the current civil law, which stipulates that brothers and sisters inherit a certain percentage of the inheritance regardless of the deceased’s will, is unconstitutional. As a result, the effect of Article 1112, Paragraph 4 of the Civil Act, which states that 'brothers and sisters of the deceased are entitled to a reserved share of one-third of the statutory inheritance', was immediately lost at the time of the decision to be unconstitutional. The Constitutional Court made this decision, pointing out that "it is difficult to find a valid reason for granting a reserved share, even though brothers and sisters are hardly recognized for their contribution to the formation of the inherited property or their expectations of the inherited property." Previously, the right to claim a reserved portion was an inheritance right that brothers and sisters could also claim, but this means that in the future, brothers and sisters will not be able to file a lawsuit claiming the return of a reserved portion based on the reserved portion. "The reserved portion for spouses and lineal ascendants and descendants is inconsistent with the Constitution." The Constitutional Court ruled that the part stipulating the statutory inheritance for spouses and lineal ascendants and descendants was also unconstitutional because it did not specify the reasons for loss of reserved portion. Recognizing the reserved portion of an heir who has engaged in immoral acts, such as abandoning his or her parents for a long period of time or mentally and physically abusing them, is said to be contrary to the legal sentiments and common sense of the general public. Therefore, Article 1112 Nos. 1 to 3 of the Civil Act, which does not separately provide for the reasons for loss of reserved portion, creates an unfair and unreasonable situation in which a contributing heir must return the donated property in response to a non-contributory heir's request for return of the reserved portion. Article 1118 of the Civil Act was unanimously judged to be inconsistent with the Constitution as it was a legislative act that did not provide for Article 1008-2 to apply mutatis mutandis to reserved portions. The purpose is that the reserve may be lost depending on specific circumstances, such as adultery or neglect of a child by a parent. Constitutional inconsistency is a decision that temporarily remains in effect until the National Assembly revises the law due to concerns about confusion caused by a legal vacuum. Regarding the above two provisions, they called for legislative improvement, saying that they will remain in effect only until revised by the legislator (National Assembly) with a deadline of December 31, 2025. Forced inheritance distribution system, first decision of the Constitutional Court in 47 years. An official of the Constitutional Court said, "This is the first decision to comprehensively rule on the legitimacy of the reserve system and the constitutionality of specific provisions." “We continued to recognize the legitimacy of the Constitution in that it is necessary, but it is significant in declaring some provisions unconstitutional and urging legislative improvement,” he explained. The current Civil Code sets the share (statutory inheritance) that children, spouses, parents, brothers, and sisters can inherit. The reserved portion system is the minimum inheritance amount set by law and was introduced in 1977 to prevent specific heirs from monopolizing inherited property. Simply put, even if the deceased inherited all of the property through a will only to a specific heir, the remaining surviving family members who did not receive the inheritance can file a lawsuit based on the reserve system and receive the inherited property. There have been continued criticisms that this reserve system excessively infringes on individual property rights and lags behind social changes. In addition, controversy over the reserve system arose further as singer Goo Hara's biological mother, who had not been in contact with her since her death in 2019, claimed her inheritance rights, and the so-called 'Goo Hara Act', which limits the right to request reserves, was proposed in the National Assembly, but was abolished at the end of the 20th National Assembly session. The Constitutional Court made a decision that had been pending for 47 years regarding the reserved portion system, which has repeatedly raised questions about its unconstitutionality. Park Yong-du, an inheritance lawyer, said, "We must intensively study inheritance-related issues that have become more complex after the Constitutional Court's decision and thoroughly prepare for the complexity of the proof relationship, such as the degree of unconstitutional behavior and contribution to the reserved portion, in inheritance disputes related to the reserved portion that are continuously increasing in the future." “In the case of a lawsuit, the outcome of the lawsuit may vary depending on the lawyer’s capabilities, so more professional lawyers are likely to be preferred,” he predicted. Help = Lawyer Yongdu Park, Daeryun Inheritance and Gasa Group, Law Firm (Limited). [View full article] - The reserve system is ruled unconstitutional for the first time in 47 years... The outlook for future oil refund claim lawsuits is:

◀ Anchor ▶ The conflict between the government and the Medical Association has been going on for more than two months, and the policy to increase the number of medical school students by 2,000 students, which was used as an excuse, is facing a critical juncture in the court. In relation to the application to suspend the increase in medical school capacity raised by the medical community, this is because the court said that it would receive evidence on the increase from the government and consider it. It also requested that the increase not be confirmed until the middle of this month. Which issue will be the key variable? Reporter Jeon Dong-hyuk pointed it out. ◀ Report ▶ Last month, the application for 'suspension of medical school expansion' filed by medical school professors, residents, and medical students was 'dismissed' without even receiving a decision from the trial court. Since the direct stakeholder in the expansion is the university president, it was deemed that professors, residents, etc. had no right to raise an objection. However, the appeals court of the Seoul High Court ruled that the president who benefits from the expansion is legally entitled to it. It was pointed out that there was no reason to enter into a dispute. Therefore, the court indicated that it would judge not only the eligibility of the applicants but also the legality of the decision to increase the number of personnel. It requested the government to detail the basis for the '2,000-person increase', from on-site inspection results and meeting minutes to future support plans and required budget. [Nari Park/Attorney] "You can think of it as 'we will look at all the submitted materials and make a decision within a few weeks from then.' I think there is a high possibility that a decision will be made. "Given the nature of the case that examines the legality of administrative dispositions, the key issue seems to be whether the expansion of medical schools is essentially in the 'public interest'. [Seong Bong-geun/Professor at Seokyeong University (majoring in administrative law)] "The most important thing is whether it is likely to have a significant impact on public welfare. Is it a private matter that cannot protect the various interests of doctors, or is it something that serves the public interest?" Lim Hyun-taek, president of the Korean Medical Association, welcomed the court, saying it put a brake on the government's unilateral policy. [Lim Hyun-taek/President of the Korean Medical Association] "The government itself admitted that the number of 2,000 students was not even grounded in allowing national medical schools to voluntarily adjust their quota..." The final count of the increase in admissions for next year at 31 medical schools was found to be 1,469. The University Education Council said this month that the court decision was made. He announced that he will not announce plans for next year's college admissions process until the middle of the year. This is Jeon Dong-hyuk from MBC News.  [View full article] - Court trying to look into the essence… “The issue is whether the 2,000-person increase meets the ‘public interest’” (Shortcut)

The Promotion Committee refused to return the installment payment even though the project was aborted. The Local Housing Association Promotion Committee (hereinafter referred to as the Promotion Committee), which induced members to join the union by deceiving them by saying that they would return the full amount of down payment depending on the progress of the project, returned the full amount to the members. According to the legal community on the 29th, the Eastern Branch of the Busan District Court recently ruled in favor of all the plaintiffs in a lawsuit filed by union members against a Promotion Committee in the Busan region. “Pay the plaintiffs their respective contributions and administrative service fees, plus money calculated at an annual rate of 12% until the date of repayment. The defendant shall bear the costs of the lawsuit,” the order said. The union members filed a lawsuit, claiming that the Promotion Committee had induced members to join the union through the ‘Safety Guarantee System’ and made them pay tens of millions of won, but did not return the installments. The Safety Guarantee System proposed by the Promotion Committee at the time of recruitment was to protect the union in case the establishment and business of the union were to fail. This means that those who wish to join can receive a full refund, including the deposit paid. The union members who joined at the time also received a letter of confirmation of the contents. However, it was revealed that the promotion committee did not even apply for approval to establish a union to the competent government office. In particular, as the progress of the project was delayed and the outlook became unclear, the promotion committee held an extraordinary general meeting and dissolved the union, citing conflict among members and project delays due to an increase in project costs, and gave up all rights related to the project. Nevertheless, the promotion committee did not want to return the amount paid, and as a result, some union members were suffering from hardships. Accordingly, the union members filed a lawsuit against the local housing association to hold the promotion committee responsible for the return of contributions due to the failure of the project. The legal representative for the union members argued that the contributions paid by the union members should be returned in accordance with the guarantee of security for the union members and the agreement on dissolution and settlement of the union. An official from Daeryun Law Firm (Limited), who acted as legal representative for the union members, said, “If there had been no agreement to guarantee return, the plaintiffs would not have signed the subscription agreement in this case.” “After emphasizing the existence of intentional deception, the promotion committee returned the contribution as unfair profits,” he explained. He added, “Deceiving the victims with ridiculous exaggerated advertisements is a clear crime of fraud,” and added, “If you want to withdraw your subscription after depositing the membership fee or withdraw your membership against the promotion committee or the union, you must actively prove intentional deception in court, but the reality is that it is not easy to prove.”  [View full article] - Busan local housing association whose project failed... Court: Full installment payment must be returned to union members (link)

The key is whether or not the actual action was taken, and whether or not the contract was leaked will also likely be an issue. As the conflict between the agency Hive and its subsidiary Adore CEO Min Hee-jin led to a police complaint, attention is focused on whether Hive's allegations of CEO Min's breach of duty will be proven. The legal community believes that it is not easy to acknowledge Representative Min's charges of breach of trust in terms of the content and target of the breach of trust based solely on the circumstances that have been disclosed to date. However, both sides can file additional charges, so there is room for the investigation to expand to other charges. According to the opinions of lawyers and legal scholars on the 28th, in order for CEO Min to be charged with breach of trust in business, the key question is whether there was an ‘actual act’ and, if so, whether this act caused damage to ‘Adore’, where Min Hee-jin is serving as CEO, not Hive, the largest shareholder. Breach of trust in business is not punished in the preliminary or conspiracy stages. ‘Initiation or commencement of implementation’ is necessary. Attorney Park Hoon said in a phone call with the Hankyoreh on this day, “In order to establish a charge of breach of trust in business, there must be evidence that CEO Min initiated specific actions, such as ‘writing a contract to take in New Genes,’ rather than saying, ‘I will take New Genes.’” He added, “It is also difficult to punish the issue of seizing management rights just for what was said in a messenger.” A charge of breach of trust in business is committed when the management causes damage to the company. This does not apply when damage is caused to shareholders. Therefore, in this case, even if there was ‘initiation or commencement of execution’, the victim of CEO Min’s breach of trust in business is only ‘Corporation Adore’ and cannot be ‘largest shareholder Hive’, which holds 80% of Adore’s shares. The most famous precedent in this regard is the Supreme Court ruling in the case of the issuance of Everland convertible bonds at a low price in connection with the succession of management rights to Samsung Electronics Chairman Lee Jae-yong in 2009. At the time, the Supreme Court acquitted former Samsung Group Chairman Lee Kun-hee and others on charges of breach of trust under the logic that even if convertible bonds were issued at a low price, this was only a ‘loss to shareholders’ and not a ‘damage to the company.’ However, if CEO Min’s ‘leak of the contract’, which Hive is taking issue with, is true and this ultimately caused damage to Adore, the possibility of various criminal punishments, including breach of duty, is open. On the 26th, Hive side refuted CEO Min's press conference held the day before and claimed, "We conducted (the audit) after confirming that documents classified as management secrets were leaked." Attorney Taejeong Yang (Gwangya Law Firm) said, "If (Hive's) story that Vice President Adore leaked Hive's internal financial data and artist contract data and planned a strategy is correct, then it is a trade secret under the Unfair Competition Prevention Act. “It can be seen as a leak that has damaged the stock price or image of the company Adore (rather than the shareholder hive),” he said. Attorney Jeong Jin-kwon (Soul Law Firm) said, “If you showed personnel data to a third party, such as a shaman, you could be accused of violating the Personal Information Protection Act.” There are many predictions that the dispute between Hive and CEO Min will escalate into a civil lawsuit in the future. Attorney Jeong Jin-kwon said, “In a situation where Hive, the majority shareholder, has requested to convene a general shareholders’ meeting to dismiss Representative Min, Representative Min may file a lawsuit confirming the invalidity of the general shareholders’ resolution or a provisional injunction to confirm director status in order to maintain his position.” Attorney Ji Min-hee (Daeryun Law Firm) said, “There is a possibility that (Hive) may file a claim for damages due to infringement of trade secrets, etc.” Regarding the accusation from Hive's CEO Min, an official at the Yongsan Police Station stated, "We will review the complaint and then look into the charges."  [View full article] - Can ‘business breach of trust’ be applied to Min Hee-jin? (Shortcut)