Establishing Hotlines With Major Overseas Law Firms in the U.S., China, and Beyond

As domestic companies' overseas expansion increases, disputes arising from differences in each country's regulations and legal systems are also increasing. In the U.S. alone, there are no shortage of regulations affecting corporate activity, such as the Foreign Corrupt Practices Act (FCPA) and the Export Administration Regulations (EAR). Labor law and corporate tax law also differ by state, so failing to properly understand local systems can entangle a company in unexpected sanctions or disputes.

For this reason, in the recent corporate legal market, demand for advisory services on so-called 'cross-border risk management,' which comprehensively manages various legal risks in the course of overseas business, is increasing. Not only domestic companies expanding abroad but also foreign companies seeking to enter the Korean market must comprehensively review each country's regulations, licensing, and labor, tax, and intellectual property issues.

To support foreign companies' entry into Korea (inbound) and domestic companies' expansion abroad (outbound), Daeryun LLC has launched a "Cross-Border Center" that handles cross-border legal advisory and litigation-related work. The Cross-Border Center operates around four main areas: customs, labor, intellectual property, and immigration (visas). In the customs and tax area, it supports origin verification arising in the import-export clearance process and strategies for tax reductions on local foreign investment. In the HR and labor area, it manages everything from the issuance of U.S. work visas essential for dispatching expatriates to HR systems optimized for both countries' laws. It also handles corporate combination reviews and fair trade regulation responses required when establishing a local corporation, as well as advisory work to prevent technology leakage, helping companies achieve a soft landing in overseas markets. Daeryun recently represented a promising domestic bio startup in a joint venture (JV) dispute as it sought to enter the U.S. market. A conflict arose over the counterpart company's non-payment of investment funds; Daeryun reviewed the contract terms, legitimately exercised the right of termination, and further advised on damages issues and the liquidation process of the joint venture.

Daeryun's global legal advisory capability lies in the organic "One-Team synergy" of veteran experts with domestic and overseas practical experience. Foreign attorney Kim Mi-a, who holds a court interpreter qualification and has broad experience advising numerous U.S. local corporations and handling immigration visa practice, heads the center. Adding their expertise are foreign attorney Son Dong-hu, who has handled international dispute practice such as representing Coupang in local U.S. litigation; foreign attorney An Jun-yong, who has built a career across corporate legal affairs including international arbitration cases in the U.S.; and foreign attorney Park Myeong-jae, who handled numerous dispute cases in a large corporation's patent team.

Also lending their strength are attorney Yoon Kyung-won, who worked over 20 years at the prosecution and embassies; attorney Cho Min-woo, who served as a technical examiner in an intellectual property-dedicated court division; attorney Bang In-tae, a former in-house counsel at a large corporation; and attorney Jang Ji-woon, who has experience as an executive director of a KOSDAQ-listed company. Also active are customs expert committee member Myung Jae-ho, who has FTA consulting and training experience, and accountant Park Su-jin, who handles global accounting practice.

Daeryun is also working to expand its overseas legal network for local legal responses. It is establishing hotlines with major overseas law firms, including the partner firm SJKP, which opened in New York, U.S., in November last year, as well as China's Yingke Law Firm and Vietnam's Phuoc & Partners. Foreign attorney Kim Mi-a said, "If overseas expansion in the past was at the level of simply pioneering a market, today's global business is like a sophisticated legal battle that must break through each country's advanced regulatory net," adding, "It is a situation in which building preemptive compliance from the planning stage, rather than reactive handling, determines a company's survival."

Daeryun Cross-Border Center

- Center Head: Foreign attorney Kim Mi-a

- Role: Providing advice on legal risks that may arise in domestic companies' overseas expansion and the like

- Main Work:

-Customs, tax, and clearance advisory; establishing overseas investment tax strategies

-Establishing overseas corporations and responding to corporate combination reviews

-Preventing technology leakage and managing risk

Reporter Oh Yu-jin oujini@chosun.com

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