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-Legal Column by Attorney Kim Won-sang, Daeryun LLC (Limited) Amid the prolonged economic downturn and high interest rate trends, corporate rehabilitation filings by small and mid-sized manufacturers driven to the brink of solvent bankruptcy are surging. Many executives feel relieved, regarding the court's "approval of the rehabilitation plan" as the finish line for escaping crisis. But the reality is harsh. Approval is merely the starting line of an arduous restructuring marathon. The strict financial oversight and credit constraints that continue even after approval become another shackle on corporate activity. The key strategy for resolving these risks early is precisely the "early termination of rehabilitation proceedings." B2B-based small and mid-sized manufacturers, which are absolutely dependent on prime contractors, differ from ordinary companies from the very cause of their crisis. This is because "exogenous shocks," such as a prime contractor's delayed investment or suspension of bidding, can plunge an otherwise healthy company into a liquidity crisis in an instant. However, if such external shocks are not objectively proven, courts or creditors are likely to assess them as mere management failures. If this misunderstanding is not dispelled at the early stage, executives face a fatal crisis of being subjected to a harsh capital reduction ratio or being stripped of management rights. Therefore, the first step of rehabilitation must begin with proving that the cause of the crisis was an unavoidable external variable, thereby securing "narrative legitimacy" that guarantees the current management's retention and business continuity. Once the legal defense line is established, the next step is to persuade the creditors. The core of the rehabilitation process is proving that the going-concern value exceeds the liquidation value. Mere figures on the books are not enough. One must demonstrate, as indicators, that relationships with major business partners remain intact and that actual cash flow allows for normal operations even after repaying public-interest debts. Only then can one preemptively block the offensive of creditors pressing for a liquidation-type scenario. The structure of rights modification also requires precise design. Converting about 80% of the debt into equity and repaying the rest is the common approach, but what matters more lies in the details. In particular, for the uncertain debts of guarantee institutions, which are fatal to small and mid-sized enterprises, a single clause coordinating the timing of subrogated payment and the repayment date to fit the company's financial plan becomes a decisive safeguard protecting the company's cash flow down the road. The most important point is that all procedures must be designed by working backward from the goal of early termination, which is a swift return to the market rather than mere approval, from the very beginning. To achieve early termination, one must prove that there is no impediment to carrying out the rehabilitation plan. To this end, tax claims should be tied up in installment repayment from the plan-drafting stage, and a preemptive plan should be devised to execute repayment immediately after approval. Ultimately, corporate rehabilitation is not merely a procedure for having debts forgiven, but an integrated restructuring process that encompasses the characteristics of the industrial ecosystem as well as tax and criminal risks. The golden time is short. The success or failure of a rehabilitation that determines a company's fate can only be secured not by merely observing the situation, but by supplementing legal blind spots and preemptively setting up a sophisticated exit strategy. Reporter Lee Dong-oh (canon35@mt.co.kr) [Read Full Article] Struggling Small and Mid-Sized Manufacturers: How to Design an "Early Termination" Beyond Rehabilitation Approval? (Go to link)

Daeryun LLC announced on the 29th that it has signed an MOU with the Jeju Gallery Association, an artist organization in the Jeju region, and will work to revitalize regional art and provide legal support for artists. The signing ceremony, held on the 15th at the Ieum Gallery in Jeju, was attended by key figures from both sides, including Daeryun Representative Kim Kook-il, attorneys Ko Seung-seok and Choi Kwang-hyun, Jeju Gallery Association Chairwoman Lee Hee-suk, founding chairwoman Kang Myeong-sun, senior vice chairman Jeong Hyeong-jun, vice chairwoman Heo Yeong-mi, finance director Park Eun-hee, and secretary-general Hong Rin. The Jeju Gallery Association, which began in 2021 as a gathering of gallery representatives, is a leading artist organization that currently drives the development of culture and art in the Jeju region, including hosting the Jeju International Art Fair based in Jeju. Through this agreement, Daeryun plans to provide systematic legal assistance to help resolve various legal uncertainties faced by regional artists and to expand the standing of K-Art in overseas markets beyond Korea. Specifically, the two sides plan to cooperate in various areas, including ▲building a legal response system for matters such as artists' work exhibitions and copyright protection ▲providing customized legal consulting for overseas market entry and expanding K-Art exports ▲regular exchange of trends and legal information in the art field along with community coexistence. Jeju Gallery Association Chairwoman Lee Hee-suk expressed her expectations, saying, "This cooperation will serve as a stepping stone for Jeju regional artists with artistic merit to expand into the global market without legal constraints." Daeryun Representative Kim Kook-il emphasized, "By supporting a partnership with the artists leading K-Art, we will realize the social value of legal services," adding, "We will fulfill the law firm's role as a facilitator helping to revitalize K-Art exports not only domestically but also overseas." Meanwhile, Daeryun provides customized legal solutions in the global market beyond Korea and contributes to the national interest through connections with various industries, cultural and artistic organizations, and companies. P&P News / Reporter Lee Su-jin gosiweek@gmail.com [Read Full Article] Daeryun Signs MOU with Jeju Gallery Association..."Legal Support for Regional Artists and Assistance for K-Art Exports" (Go to link)

U.S. Syracuse Law School visits Daeryun···holds international technology-law and digital-asset seminar- Overview of tech investment and cross-border regulatory environment···expanding Korea-U.S. legal practice exchangeDaeryun Law Firm announced on the 28th that it had held an international legal exchange program together with its U.S. local partner law firm SJKP, LLP and Syracuse University College of Law.At the program's opening ceremony, held on the 26th at Daeryun's main office in Parc.1 in Yeouido, Seoul, attendees included Daeryun Representatives Kim Kook-il and Park Dong-il, Foreign Attorney Son Dong-hu, Syracuse University College of Law Associate Dean Shannon Gardner, Professor of Digital and Technology Law and Intellectual Property Law Dan Traficonte, about 20 enrolled students, and Hong Dae-sik, chairman of the Korea Association of Law Schools, among others.Syracuse University College of Law, established in 1895, is a traditional U.S. legal education institution recognized for its competitiveness in practice-centered legal education fields such as international law and technology law. It is also known as the alma mater of Joe Biden, the 46th President of the United States.This exchange program was realized based on an MOU that Daeryun's partner firm SJKP concluded with Syracuse Law School in November last year. Arranged on the foundation of the two institutions' ongoing partnership, this event carries the aim of jointly cultivating global legal talent and jointly responding to cross-border legal demand, beyond a mere institutional visit.Daeryun Representative Kim Kook-il, who attended the opening ceremony, emphasized, "This occasion is a meaningful time to experience the Korea-U.S. practice environment and discuss client-centered improvements in practical operations," adding, "Based on cooperation with SJKP, Daeryun will continue to broaden its capacity to respond to international legal demand beyond the domestic sphere."Representative Park Dong-il said, "I find it all the more meaningful that the discussions I had when I visited Syracuse Law School in person last year have led to an actual exchange program," adding, "As Seoul has great potential to grow into an Asian hub for legal education and business, we will widen the doors of various opportunities so that outstanding global talent can grow together within the global network of Daeryun and SJKP."Shannon Gardner, Associate Dean of Syracuse University College of Law, said, "I find it very meaningful to hold, for the first time in Seoul, the international exchange program that had been operated centered on London," adding, "I hope it becomes an opportunity for students to directly experience Korea's legal market and industrial field and broaden their perspective on global practice."Chairman Hong Dae-sik then said, "I hope this meeting does not end as a one-time visit but becomes a starting point that further solidifies the friendship and cooperation between the two countries' legal educators and students."In the ensuing seminar, Daeryun's Foreign Attorney Son Dong-hu took the stage as a speaker and gave a presentation on the theme of "The U.S. Technology Investment Environment and Digital Industry Regulatory Trends." Attorney Son explained major regulatory issues facing global companies, such as the Committee on Foreign Investment in the United States (CFIUS), the U.S. Department of Commerce Bureau of Industry and Security (BIS) export controls, the Inflation Reduction Act (IRA), and the Foreign Entity of Concern (FEOC) regulations.He also drew participants' interest by explaining the practical flow—centered on disclosed cases such as investment-structure design, joint-venture operation, supply-chain regulatory response, and foreign-exchange reporting that arise in the cross-border transaction process—based on Korean companies' U.S. investment cases.Daeryun and SJKP plan to further strengthen their cooperative relationship with Syracuse Law School, taking this exchange program as a starting point. The plan is to build an ongoing cooperation system across academic and practical fields—rather than ending with a one-off exchange—to further solidify their global network.Meanwhile, SJKP, LLP is a U.S. corporation headquartered at 1 World Trade Center in Manhattan, New York, and, as Daeryun's global cooperation partner, handles Korea-U.S. cross-border legal advisory. [Read Full Article] Daeryun Law Firm and SJKP Successfully Conclude International Legal Exchange Program with Syracuse University College of Law (Go to Link)\r

Employees of a manufacturing company were put on trial on charges of taking company materials when they resigned, setting up a competing business in the same field, and selling similar products. However, the court ruled that the materials in question did not constitute trade secrets and handed down an acquittal. According to the legal community on the 28th, the Jeju District Court in March acquitted three individuals, including Mr. A, who had been indicted on charges of violating the Unfair Competition Prevention and Trade Secret Protection Act (including disclosure of trade secrets) and occupational breach of trust. Mr. A worked at Company B, a manufacturer, before resigning in 2022 and establishing a company in the same field. Two colleagues who subsequently left Company B joined his company. Company B claimed that Mr. A and the others had taken computer files related to a product under development around the time of their resignation. It also emphasized that it suffered financial damage because Mr. A's company used these materials to launch and sell a similar product first. During the trial, Mr. A and the others denied all charges. They said they resigned because they had not been properly paid several months' worth of wages, and that they took the materials to prove their employment. They argued that the files they took upon resignation had no access restrictions or confidentiality markings, so they did not constitute trade secrets, and that the product they launched with their new company differed in composition from Company B's product, so no damage was caused. The court accepted their claims as true and determined that the materials taken during the resignation process were not trade secrets either. This was because most of the content of the materials was publicly available on the internet, so Mr. A and the others made the product in a way accessible through YouTube. The court also found that the profit they earned from making the product was very small, so the materials taken from Company B could not constitute a major business asset capable of providing a competitive advantage. Attorney Lee Da-woo of Daeryun LLC, who represented Mr. A and the others, explained, "Under the Unfair Competition Prevention Act, information that anyone can easily obtain or that is generally known cannot be recognized as a trade secret," adding, "We were able to obtain an acquittal by emphasizing that the files in question were nothing more than materials available on the internet, and that the purpose of removing them was to prove the fact of unpaid wages." Reporter Jeong Cheol-wook [Read Full Article] Company Sues Employees Who Took Employment Records...Court Declares "Not a Trade Secret," Hands Down Acquittal (Go to link)

A recommendation has emerged that for domestic technology companies to settle into the North American market, they must meticulously design a technology and intellectual property (IP) protection structure from the early stage of entering Canada. The analysis is that Canada should be approached not as a mere place of incorporation but as a strategic hub connecting local research and development (R&D), investment attraction, and market entry.Foreign Attorney Kim Mi-a (United States) presented a cross-border legal guide centered on this content as a presenter at the "2026 Canada X Korea Forum" held on the 21st at TIPS Town GSC in Seoul. This forum was arranged to build a Korea-Canada AI and mobility industry cooperation framework and to strengthen the linkage of the North American entry ecosystem.Presenting in the "Insight: Why Canada?" session that day, Attorney Kim said, "Establishing a corporation in Canada is not merely an administrative procedure but the starting point of hub design connecting local R&D, proof-of-concept (PoC) projects, investment attraction, and market entry," adding, "Canada is a North American gateway with multi-nucleus AI clusters such as Toronto and Montreal," and "a clear strategy tailored to the purpose of entry must come first."Attorney Kim cited the IP ownership issue as a practical risk that domestic companies frequently overlook in the process of overseas expansion. She explained, "Canada has a structure that determines the attribution of rights through contracts rather than uniform attribution by statute, with copyright law backing this up," noting, "It is difficult to conclude that the technology and IP of work created by in-house employees or outsourced developers automatically belong to the company."She added, "The North American local legal system tends to strongly protect developers' rights, so a situation can arise in which core technology is not sufficiently secured."As a solution, she advised that from the initial setup stage, clear IP-transfer and rights-waiver clauses should be reflected in employment and outsourcing contracts. She also explained that systematizing shareholder agreements is necessary to reduce equity dilution and management-control risk. As a practical point, she noted that consistently maintaining the definitions of terms across each contract document can reduce legal gaps when disputes arise.This forum was co-hosted and co-organized by The Way Company, the FAMS 2026 Organizing Committee, and the World Korean Venture Network, among others.Reporter Hwang Jung-won (garden@sidae.com) [Read Full Article] Foreign Attorney Kim Mi-a: "Success in Entering Canada Depends on Early Technology and IP Protection Design" (Go to Link)\r

Establishing a foundation for Workplace WM service collaboration for Daeryun's executives and staff- Providing comprehensive financial-welfare services centered on asset management and retirement planningDaeryun Law Firm announced on the 22nd that it had concluded a business agreement with Shinhan Securities and Skyz Korea to build a Workplace WM (corporate-linked wealth management) service collaboration system for Daeryun's executives and staff.This signing ceremony, held on the 20th, was arranged to systematically support the diverse financial needs of Daeryun's executives and staff. Its purpose is to provide customized financial-welfare services spanning the entire life cycle, such as asset management, retirement planning, and financial consulting.Through this agreement, Shinhan Securities plans to provide Daeryun's executives and staff with professional asset-management services and financial consulting. It will cooperate in areas such as: ▲customized asset-management consulting for executives and staff ▲provision of financial products and investment solutions ▲support for retirement pensions and retirement planning ▲operation of financial education and seminars for executives and staff ▲operation of expert-invited lectures and consulting programs.Park Geun-bae, managing director of Shinhan Securities, said, "The domain of executive and staff welfare is expanding beyond simple welfare into comprehensive financial solutions," adding, "Through collaboration with Daeryun, we expect to be able to provide differentiated Workplace WM services that offer real help to executives and staff."Kim Kook-il, Daeryun's representative, said, "Through this collaboration, we are now able to provide our executives and staff with more professional and systematic financial services," adding, "We will continue to expand the Workplace WM collaboration model that can enhance executive and staff satisfaction." Reporter Cheon Ju-young (young1997@mydaily.co.kr) [Read Full Article] My Daily - Daeryun Law Firm Signs Agreement with Shinhan Securities and Skyz Korea (Go to Link) Seoul Shinmun - Daeryun Law Firm Offers Customized Asset-Management Services to Executives and Staff…MOU with Shinhan Securities (Go to Link)\r

U.S. federal court's first hearing in JuneClass action worth 7.3 billion won"Korean consumers deserve equal compensation too"With six months having passed since the massive personal-information leak at Coupang, a class action worth 5 million dollars (about 7.3 billion won) in the United States is entering a full-fledged courtroom battle next month, beginning with the Initial Conference. Thousands of domestic and overseas victims are participating in the suit, and the movement of consumers to reclaim their rights against a platform conglomerate is expected to accelerate.According to Daeryun Law Firm on the 26th, the initial case-management date for the class action being conducted by SJKP.LLP—Daeryun's U.S. partner law firm representing the plaintiffs—against Coupang Inc and Kim Bom-suk, chairman of Coupang Inc, will be held next month at the federal court in Brooklyn, New York. Earlier, SJKP filed the class-action complaint with the local court in February, and to date about 7,800 domestic and overseas victims have joined the suit.At this initial date, both sides will submit a "Proposed Discovery Plan" and finalize the case's main issues and the scope of future investigation. In particular, once discovery—a powerful compulsory information-disclosure procedure unique to U.S. litigation—begins in earnest, Coupang's internal security management system and the circumstances of its incident response are expected to become key subjects of verification.The plaintiffs' representative, SJKP, asserts Chairman Kim Bom-suk's management and supervisory responsibility, and puts forward Coupang Inc's negligence and implied breach of contract, unjust enrichment, and violation of the New York State consumer protection law as the main causes of action.This class action is being driven by a U.S. citizen who has come forward as the lead plaintiff, and about 7,800 Korea-resident users are classified as a separate subclass exercising their rights.In relation to this, Son Dong-hu, a foreign attorney at Daeryun who is leading the suit, explained, "Once we go through the U.S. court's 'class certification' procedure, the lead plaintiffs' damages will be commonly recognized for many others," adding, "Through this process, the total number of victims covered by the suit's effect could increase beyond the current figure."Moreover, the 90-day cooling-off period of the investor-state dispute (ISDS) filed in January by Coupang's U.S. investors (Greenoaks and Altimeter), who claim losses from the Korean government's fact-finding investigation, recently ended, so the domestic and international legal and regulatory issues surrounding the Coupang incident are becoming complexly intertwined.Since this is a serious matter in which the possibility of large-scale damage on the order of about 30 million people is being raised, some analyses hold that more active attention and exercise of rights are needed for substantive damage recovery and consumer-rights protection.In relation to this, Kim Kook-il, Daeryun's representative, emphasized, "For Korean consumers to miss the chance to participate because they are unaware of the progress of the suit or the rights-relief procedure itself is, in itself, another infringement of rights," adding, "Even when participating as a subclass, under U.S. precedent, if class certification is granted through the court's fair review and a settlement or judgment is reached, one can become subject to rights relief according to the standards approved by the court, so it is necessary to accurately confirm the procedure and scope of rights."He continued, "This suit goes beyond simple after-the-fact compensation; it has a strong public-interest character in that, through the strict procedures of the U.S. court, it draws companies to voluntarily build strong security-prevention systems," urging, "I hope more domestic victims join the suit and reclaim their rightful rights themselves." Reporter Kim Jin-ryong (kim.jinryong@mk.co.kr) [Read Full Article] Half a Year Since the Coupang Data Leak… 7,800-Plus Join the First Trial of the U.S. Class Action (Go to Link)\r

Demanding high ethical standards of medical personnel who handle human life is a consensus of our times. In the past, restrictions on medical licenses were mainly limited to medically related crimes. However, the amended Medical Service Act, which took effect on November 20, 2023, completely overturned this paradigm. Before the amendment, the crimes constituting grounds for disqualification were limited to medically related crimes—such as violations of the Medical Service Act and medical-related statutes and certain related crimes under the Criminal Act—but after the amendment, regardless of the type of crime, being sentenced to imprisonment or heavier, a suspended sentence, or a suspension of the imposition of sentence can result in license revocation for the respective disqualification period. In other words, it has become a structure in which even everyday negligence outside the medical field can take away one's professional life.The greatest legal contradiction is the lack of the "principle of clarity." The amended law specified the point at which grounds for disqualification are established as "after the suspension period has passed." However, in actual administrative practice, the statute is being arbitrarily and expansively interpreted, with license-revocation dispositions being issued even at a point when the suspension period has not yet elapsed. Because of this, medical personnel, as the subjects of the norm, cannot even predict at what point their license will be revoked. This seriously undermines legal stability, the foundation of a state governed by the rule of law.The excessive infringement of "freedom to perform one's occupation" is also an essential unconstitutional element. Crimes committed within medical treatment, directly connected to patient safety, and conflicts in the private sphere are of different legal dimensions. Even if the legislative purpose is legitimate, linking all crimes unrelated to medical treatment to license revocation constitutes a violation of the "principle against excessive restriction." Uniformly stripping qualifications without an individual review of the specific circumstances or the risk of recidivism is an action that has lost the balance of legal interests.The conflict with the "principle of separation of powers" also cannot be overlooked. Even if the judiciary shows leniency with a suspended sentence after examining the circumstances of the case, the administrative agency mechanically revokes the license based solely on the outward form of the penalty. In particular, an administrative agency revoking a license in a case where the court, judging the risk of recidivism to be low, did not even issue an "employment-restriction order" is a result in which the logic of sanctions is reversed. This is a structural contradiction that neutralizes the judiciary's flexible sentencing intent with administrative rigidity.The "principle of equality" logic, which invokes fairness with other professions, also overlooks the particularity of the occupational field. The duty structure of medical personnel, confined to the highly specialized area of health and medicine, is fundamentally different from that of occupational fields such as attorneys, who handle the law as a whole. Emphasizing only mechanical fairness with other occupations while ignoring the essential differences of the occupational field runs counter to the purpose of the right to equality, which presupposes reasonable differentiation.The law must be both a bulwark that protects social trust and a shield that protects individuals' fundamental rights. The "strict ethics" emphasized by the amended Medical Service Act is important, but the infringement of fundamental rights and the legal contradictions arising in that process are problems that cannot be overlooked. For reasonable application of the law that reflects the particularity of the medical field, it is now time for a judgment by the Constitutional Court and in-depth social discussion. [Read Full Article] The License-Revocation Provision of the Amended Medical Service Act, Its Constitutional Issues and Challenges\r (Go to Link)

Using AI to stage images of wealth and "fishing" with fake credentials"It's premium information, so never tell anyone around you"—the temptationMessenger chats in awkward Korean that seem run through a translator"If you suspect fraud, preserve the chat-room evidence and report it""It's the third day of teaching stocks to my daughter, who just graduated from Seoul National University. Add my LINE ID and I'll send you the materials right away.""My wife works at SK Hynix. She just said something meaningful at dinner. I'll quietly share the materials only with those who hit 'like.'"These are posts uploaded to Threads on the 5th and the 12th, respectively. In the background appear a mansion with lush green lawns, a Porsche and a Mercedes-Benz worth hundreds of millions of won, and a daughter casually wearing a Chanel jacket.It is the image of a "perfect silver-spoon family" that anyone scrolling through social networking services (SNS) has their eyes caught by at least once. They kindly (?) tempt you, offering to share their own secret investment know-how.But it is all a fake image elaborately created with generative artificial intelligence (AI).Recently, riding the stock market boom, such "stock leading-room investment fraud"—which manipulates images of the wealthy or asset-management experts with AI to lure people—is running rampant. Comment "I want the materials" and you're led to a leading roomOn the 10th, a post was uploaded to Threads with a photo of children in private-elementary-school uniforms getting into a foreign car, reading, "Day 3 of teaching stocks to my two kids attending Daechi Elementary. If you're curious about investment info, send a DM."Also uploaded were a post with a photo of a woman in a Chanel jacket standing in front of a country house with two Mercedes-Benz cars parked, reading, "Today is the first day of teaching stock studies to my daughter who just graduated from Korea University," and a post reading, "My husband is a Samsung Electronics employee, and he says a certain technology is the trend. Leave a DM and I'll tell you the investment info."According to Yonhap News's reporting, this turned out to be a typical method of "investment leading-room fraud" that stirs curiosity and then draws people into hard-to-trace closed chat rooms. If you leave a comment saying "I want the materials," you become a target of the crime.The fraud organization induces victims to join messenger group chat rooms such as Telegram, LINE, and Naver Band. In the chat rooms, "shills" post fake profit verifications one after another, and those who fall for it are defrauded into depositing money into a fake stock home trading system (HTS).When this reporter sent messages saying "I want to receive the investment materials" to the post authors over five days from the 12th to the 16th, they all, on the pretext of preventing minors from imitating the investments, asked about age and stock-investment experience.When I answered "33 years old," an absurd reply came back saying, "33-year-olds have difficulty joining the group chat room, so please tell me again with an age in the late 40s to early 60s." The tone was awkward, as if run through a translator. I got the impression of chatting with a foreigner who is not good at Korean.When I revised the age to "47," a chat-room link connecting to Telegram, LINE, Naver Band, and the like arrived.When I accessed the Telegram room through the link provided on the 12th, a figure named "Lee Hye-young" with a profile of a woman in a suit invited me to a group room of about 70 people, saying, "The representative shares the day's recommended stocks in the group chat every day, so if you invest quickly you'll gain stable profits."After that, every day at 7:30 p.m., a figure called "the representative" gave stock lectures by text and posted recommended stocks.No sooner had the guidance "As soon as you get the alert, buy immediately and verify by private message" appeared than posts from people verifying purchase captures worth about 500,000 won poured in one after another in the room.But this chat content was deleted a few days later.Regarding this, a police official explained on the 21st, "The late-40s to early-60s age group has a large scale of assets they can manage, such as retirement funds, and their judgment may be relatively clouded, so they are targeted for the crime."In the Naver Band stock leading room, a so-called "Professor Jeon Kyung-nam," who impersonated the name and photo of Jeon Kyung-nam, president of Mirae Asset Securities, guided investment lectures and recommended stocks.On the 14th, a person named "Kim Hyun-a," who identified herself as the secretary of "Professor Jeon," even placed a Naver Band call, saying, "If you buy the recommended stocks quickly and let us know immediately, we'll take care of your selling timing first."However, when I asked by private message, "What does Professor Jeon really do?" they immediately blocked the message and deleted the chat room.When I contacted three post authors through LINE, each guided me to a different group chat room they ran. However, in each chat room, a figure using the name and photo of "Kim Young-su, CEO of Devoral Capital" appeared without exception. It was a professional fraud chat room for which investment-fraud damage cases had already been received through several law firms.A police official explained, "The same lines are posted simultaneously across multiple fraud rooms, and the bases running these macros are often in Southeast Asia, such as Cambodia, which is also why the tone is an awkward translation style." "I was tempted because they posted verification photos claiming they made over 1 million won on day trades"One might wonder who would fall for it, but damage cases of people who were "fished" by such "AI fake rich people" and lost money continue one after another.Self-employed Ms. Lee (58) said that in March she saw a post on Threads reading "My husband works at Hynix and recommended this stock," entered a Telegram room, and was defrauded of 30 million won.Ms. Lee lamented, "In the room, people posted verification photos claiming they made over 1 million won on day trades, so I was tempted," adding, "The professor even gave lectures every evening, so I never suspected it was fraud."She added, "Following the counselor's guidance, I deposited 30 million won into a fake exchange app, but after being refused a profit withdrawal, the chat room and the site all disappeared within two days. I'm currently pursuing a complaint."Office worker Mr. Kim (46) said that early this month he saw a post on Threads reading "Teaching stocks to my child attending Korea University," entered a Naver Band room, and avoided disaster thanks to a colleague's dissuasion.Mr. Kim said, "The post had over 1,000 comments, and hearing that people around had made money on stocks, my heart wavered," adding with relief, "At lunchtime a company colleague said, 'Isn't that a leading-room scam?' and when I searched, it was a fraud outfit already cited as a damage case."Also, Mr. A, who said he entered a Telegram stock room after seeing a post on Instagram reading "Teaching stocks to my daughter who graduated from Seoul National University," said in an interview via chat, "Until recently I traded by just randomly picking, but in the end I took quite a lot of losses."A police official explained, "One of the typical methods of stock leading-room investment fraud is to say, 'This is premium information, so never tell anyone around you,'" adding, "The intent is to block the people around you from being able to say, 'That's a scam.'"He also said, "The profit-verification posts in the room are highly likely to be macros rather than actual users," adding, "Impersonation using AI-generated photos or photos of securities-firm CEOs and trading experts is also common."Attorney Kim Jin-won of Daeryun Law Firm said, "Stock-leading fraud cases are usually collective fraud crimes conspired by many people, and depending on the case, even the crime of organizing a criminal group for the purpose of fraud may apply."He also explained, "According to a pre-written script, roles such as shills in the group room, fake profit verifications, and expert impersonation are divided up to plant in the victim the belief that the stock investment will surely succeed and to lure them into investing without suspicion."Attorney Kim advised, "The moment you think you've been deceived and deposited money, you must report it to your bank and investigative agencies," adding, "Never leave the Telegram or SNS room where you conversed with the other party, and keep the conversations and deposit records intact, as they can be used as important evidence in the investigation and litigation process."A police official emphasized, "When complaints pile up against a specific fraud outfit, the criminals feel a sense of crisis and sometimes attempt to settle with victims," adding, "Do receive a settlement that can recover the damages, but in this process you must never make additional deposits by being deceived by the criminals' sweet talk, such as 'the account is frozen and money is needed to unfreeze it.'"He added, "The criminals use bypass devices such as burner phones or manipulate transmitting base stations, which makes the investigation difficult, but the police too are mobilizing every investigative method to track down the suspects." [Read Full Article] [Shot!] The Investment Fraud of a Perfect Silver-Spoon Family\r (Go to Link)</a

The concern that most worries the heads of small and mid-sized companies considering corporate rehabilitation is the loss of management control. There exists a vague fear that if a debt-to-equity conversion—turning debt into shares to obtain massive debt relief—takes place, creditors will become major shareholders and the existing owner will be ousted. However, the Debtor Rehabilitation and Bankruptcy Act, in principle, adopts the "existing manager as custodian appointment system," under which the existing representative director is appointed as the statutory custodian, barring serious disqualifying grounds such as embezzlement or breach of trust. In other words, corporate rehabilitation is not a deprivation of management control but a legal protective device that guarantees the management continuity of a company that has fallen into a temporary liquidity crisis.The first hurdle to overcome in defending management control during the rehabilitation procedure is the "principle of guaranteeing liquidation value." One must prove to the court that the value of continuing the business (going-concern value) is objectively higher than the value of selling assets by bankrupting the company (liquidation value).Looking at a case involving a certain company, this company faced a crisis due to an excessive investment in newly building an overseas plant and a deterioration of the external environment such as COVID-19 and the global interest-rate hikes, despite possessing excellent technological capabilities. However, through thorough financial investigation, it was able to secure the justification for rehabilitation by clearly proving—both legally and in accounting terms—that the company's going-concern value greatly exceeded its liquidation value. Thus, proving that it was a temporary crisis caused by the external environment rather than a management failure is the key starting point for approval of corporate rehabilitation.Once going-concern value is recognized, the next step is designing an elaborate rehabilitation plan. For a rehabilitation plan to receive court approval, it must meet strict requirements: consent of three-quarters or more of secured rehabilitation creditors and two-thirds or more of rehabilitation creditors. The most effective strategy in practice is a "back-loaded" repayment schedule. In this structure, the repayment rate is minimized to around 2–4% in the early phase of rehabilitation so that the company can concentrate resources on normalizing operations, and repayment amounts are concentrated in the later phase when operating profits begin in earnest. This becomes a powerful weapon regarded by both the court and creditors as a realistic alternative with a high probability of repayment.Attorney Kim Won-sang of Daeryun LLC (Limited) said, "The core legal principle for defending management control lies in the meticulous structuring of debt-to-equity conversion and capital reduction (share consolidation). Converting debt into shares inevitably swells the capital and rapidly increases creditors' shareholding ratio. To control this, a capital-reduction procedure that consolidates shares at a ratio of 10:1 or more must be designed into the plan," adding, "The company in the aforementioned case converted 55% of its rehabilitation claims into equity, yet through elaborate share-consolidation design defended the existing representative's shareholding ratio at over 7% and maintained management control. Thus, depending on how one designs the correlation between the debt-to-equity conversion ratio and share consolidation, the owner of the company after rehabilitation changes."Attorney Kim said, "Also, an important issue that must not be overlooked in the corporate rehabilitation procedure is the protection of public-interest claims. Workers' wages and unpaid taxes are priority claims that must be repaid at any time regardless of the rehabilitation plan. To prevent the departure of skilled staff and continue smooth operations, the funding source for repaying public-interest claims must be thoroughly secured in advance. Corporate rehabilitation is not simply a procedure to plead for debt relief. It is a complex restructuring process that proves the company's continuation value and defends its governance structure. If you are experiencing a liquidity crisis, before the debt reaches its critical threshold, you must establish a meticulous strategy with the assistance of an expert from the early stage."Enet News Reporter Park Jung-woo (woo@enetnews.co.kr) [Read Full Article] "Reduce Debt While Keeping Management Control"···What Are the Strategies for Successful Corporate Rehabilitation? (Go to Link)\r