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Daeryun Corporate Law Group announced on the 14th that it signed a business agreement (MOU) with Bridgecode, a financial advisor specializing in M&A for small and medium-sized venture companies, to strengthen corporate financial services. The signing ceremony was held at the Daeryun Seoul headquarters and Yeouido branch office on the 12th, and key figures including Daeryun CEO Kim Kuk-il, CEO Choi Yi-seon and Bridgecode Director Lee Jun-myeong attended. Bridgecode targets companies. It is a financial company that provides M&A services and has a network in 9 global countries, including Japan, Singapore, and India. In addition, it supports an automated brokerage platform through the M&A exchange, and during the corporate acquisition process, experts from large financial institutions such as Mirae Asset Securities and Samsung Securities and accounting experts are deployed to provide customized M&A solutions throughout the entire process, including △ corporate value assessment △ transaction structure design △ buyer discovery. 1,600 cases per year. Bridge Code, which has more than 1.9 trillion won in M&A inquiries and 1.9 trillion won in sales advisory performance, also obtained the highest grade, S, in the M&A advisory agency evaluation hosted by the Ministry of SMEs and Startups in January of this year. Daeryun Corporate Law Group has specialized centers for corporate mergers and acquisitions (M&A), corporate advisory, and asset management, and professional lawyers with abundant experience and practical skills in fields such as corporate law, intellectual property rights, and finance provide customized legal services to customers. We plan to provide comprehensive advisory services for the development of Bridgecode's global business, and help build an upgraded advisory process by combining legal services and financial expertise. Through this agreement, the two companies will share insights on M&A-related work such as corporate due diligence, valuation, and accounting advice, and provide △ legal advice on contracts, investments, and negotiations △ legal due diligence support in the investment, acquisition, and sale process △ corporate finance legal and tax risk management. We plan to △hold legal, tax, and accounting education seminars for customers △cooperate in joint advancement into domestic and overseas markets. Bridge Code Director Lee Jun-myeong said, “I am very excited to have signed a business agreement with Daeryun, one of the major domestic law firms,” and added, “I am glad that through this agreement, we will be able to more systematically manage legal risks that may arise during the M&A process. We will provide safer and more successful M&A solutions to customers by utilizing the expertise of both companies.” Daeryun CEO Kim Kuk-il said, "M&A is an area where legal stability is as essential as financial analysis. By combining Bridge Code's overwhelming M&A advisory capabilities with Daeryun's innovative system, we will become a strong partner for corporate customers." Eunhye Lee (zhses3@joseilbo.com)[View full article] Daeryun Law Firm signs MOU with Bridge Code... Strengthening corporate financial services (click here)

Forming a regular working council for AI-based procurement innovation... Building a long-term cooperation model "We will increase the global competitiveness of domestic companies by combining legal expertise and AI technology capabilities" Daeryun Law Firm announced on the 14th that it has signed a business agreement (MOU) with the Korean Association of Purchasing and Procurement and will begin to establish a professional cooperation system to innovate the domestic procurement system and enter the global market. At the signing ceremony held at Daeryun's Seoul headquarters on the 12th, CEO of Daeryun Kim Kuk-il, representative lawyer Choi Yi-sun, attorney Shin Jong-soo and Korean Association of Purchasing and Procurement Association Hyeong-nam Moon attended the signing ceremony. The president of the academic society, academic committee chairman Lee Chung-hyung, and planning committee chairman Choi Bong-hyuk were in attendance. The Korea Purchasing and Procurement Society, established in 2003, is the only academic organization specializing in procurement and purchasing in Korea. It is leading the way in improving the transparency and efficiency of procurement administration through academic research and policy proposals in the fields of public procurement, purchasing policy, and contract system. In particular, it is active in AI and big data-based procurement data analysis, international procurement system research, overseas procurement network construction, and support for domestic companies' participation in overseas public bidding. Through this MOU, Daeryun plans to form a regular working-level consultative body and establish a long-term cooperation model such as AI-based procurement innovation, international procurement system research, and global partnership expansion. Specifically, ▲ research on laws and policies related to public procurement and purchasing systems ▲ joint development of AI-based procurement data analysis and contract risk prediction system. ▲We plan to cooperate in various fields, including holding policy forums, seminars, and academic conferences. Hyeong-Nam Moon, President of the Korea Purchasing and Procurement Society (Dean of the Global Convergence College at Sookmyung Women's University), said, "Innovation in public procurement begins with the combination of technology and policy. In particular, by utilizing cutting-edge technologies such as AI, a data-based, transparent and efficient procurement system can be implemented." He added, "This agreement will be an important turning point in improving the competitiveness of our companies on the global procurement stage." The management representative said, "By combining Daeryun's legal expertise in the procurement and purchasing field with AI technology, we will help domestic companies demonstrate competitiveness in the global market together with academic societies. We will lead to actual strengthening of competitiveness through data-based preliminary inspection and risk management." Meanwhile, Daeryun provides customized advice in specialized fields such as public procurement, international contracts, and intellectual property rights, and provides integrated legal solutions to strengthen the competitiveness of domestic and foreign companies. Reporter Kim Nam-ha (skagk1234@dailian.co.kr)[View full article] Dailyan - Daeryun, MOU with Korea Purchasing and Procurement Society... “Combining legal expertise and AI technology capabilities” (link) NSP Communications - Korea Society of Purchasing and Procurement signed MOU with Daeryun Law Firm (Click here)

Recently, the domestic construction industry is literally in a dilemma. According to the '2025 Revised Economic Outlook' announced by the Bank of Korea in June, the growth rate of construction investment this year was predicted to be -6.1%. This is the lowest figure since -13.2% during the 1998 foreign exchange crisis. This is also revealed in the scale of wage arrears. The amount of wage arrears in the construction industry, which had been decreasing until 2021, turned to an increase in 2022 when the construction economy slowed down, and increased by about 49% to 436.3 billion won in 2023 compared to the previous year. In this reality, the current Labor Standards Act imposes heavier responsibilities on the main contractor considering the subcontracting structure of construction sites. A representative example is Article 44-2 of the Labor Standards Act. This provision stipulates that even if a subcontractor other than the construction business fails to pay wages, the immediate subcontractor is also jointly and severally liable. This is a ‘no-fault liability’ structure that holds the original contractor responsible even if there is no direct fault. Because of this, the main contractor takes on unpredictable legal risks in areas that are difficult to directly manage and supervise. For example, let's assume that construction company A, the main contractor, entrusts the construction to company B, and then subcontracts it to company C, a human resources company that is not registered as a construction business. If Company C, which actually recruits and manages construction workers, fails to pay wages due to management difficulties, responsibility extends beyond Company B, which signed a contract with Company C, to Company A, the highest-ranking contractor. As Company A, it is shackled to be responsible for the wages of workers with whom it has no direct contractual relationship. Ultimately, in order for the main contractor to survive in such a tight legal liability network, much more specific and realistic defense measures are needed beyond simply writing a good contract. The following three options must be considered: First, actively utilize the direct payment system for subcontracting payments. Second, clearly establishing a unit price adjustment process according to price fluctuations. Lastly, it is important to carefully review the subcontractor's financial soundness before signing the contract. First and foremost, the direct payment system for subcontracting is an effective device that allows the main contractor to prevent legal disputes due to non-payment of wages or non-payment of payments in advance by paying subcontracting payments directly to workers or material and equipment suppliers rather than to intermediate recipients. In addition, in private construction, even if it is not a contractual obligation, the chain of joint liability that may arise in the future can be broken through the direct payment system. In addition, by checking the actual number of days worked and wage payment details of workers in real time through an electronic commuting system or mobile wage management platform, it is possible to fundamentally prevent payment omissions or delays. Second, if the burden on subcontractors increases due to design changes or a surge in raw material prices during construction, it is important to prepare a unit price adjustment process in advance to reflect this. By regularizing cost review meetings every quarter and specifying in the contract that unit price negotiations will automatically begin when material prices rise above a certain standard, the possibility of disputes over increased construction costs can be greatly reduced. In addition, by introducing a unit price adjustment model based on risk and comprehensively scoring the above items, a more reasonable and predictable contract is possible. Lastly, it is fundamental to thoroughly review whether the supplier is registered as a construction business and its financial soundness. In order to understand this, it can be prevented by mandating the submission of a construction business registration certificate and setting up wage payment guarantee insurance as a mandatory requirement of the contract. This goes beyond simply avoiding legal responsibility. This is because joint liability for non-payment of wages is not a one-time cost that damages one line of the main agency's financial statements, but a serious management risk that directly leads to long-term loss of trust and decline in brand value. In the construction industry, as the construction period is long and stakeholders are complexly intertwined, a single non-payment incident will affect the competitiveness of receiving orders and financial creditworthiness for years to come. Therefore, in order to prevent unpredictable financial losses and protect the trust of the field, organization, and market, 'prevention' is the best defense strategy and the only survival strategy. Small and Medium Business Team[View full article] Construction industry in 'historic recession'... What is the agency’s risk response strategy? (Shortcut)

A driver in his 30s who was accused of insurance fraud by an insurance company after colliding with a co-worker's car that slipped and was parked while stopped on a downhill road was acquitted. Gangwon Hongcheon Police Station was found not guilty on charges of violating the Special Act on Prevention of Insurance Fraud on the 10th of last month. A decision was made not to send the booked man, Mr. A, in his 30s, without charges. Previously, Mr. A stopped his cargo vehicle at a construction site in Hongcheon, Gangwon-do in November 2024. However, the vehicle with the ignition on slid downhill and hit the vehicle of Mr. A's colleague, who was parked in front of him. There were no casualties in this accident, but Mr. A's cargo vehicle was severely damaged, resulting in property damage amounting to 16 million won. Accordingly, Mr. A reported the accident to Insurance Company B for insurance processing, and Insurance B reported that Mr. A intentionally caused the accident to receive insurance money and sued Mr. A. Insurance Company B sued Mr. A. It was based on the National Forensic Service's appraisal report. It is said that the appraisal report contains analysis results showing that there is a high possibility of an intentional accident. Mr. A denied all charges, claiming, “Insurance Company B filed the complaint without conducting a proper investigation into the situation at the scene or the circumstances surrounding the accident at the time of the accident.” The police also decided not to forward the case, finding that Mr. A was not guilty. The police said, “There is no special evidence that can be considered insurance fraud.” Lee Ji-yeon, a lawyer at Daeryun Law Firm who represented suspect A, explained, “After proving the cause of the accident based on the results of analysis of the situation just before the vehicle collision, the reason the impact was alleviated, and the area of the collision, we were able to conclude that there were no charges.” Attorney Lee Ji-yeon also said, “As Mr. “If the insurance company had conducted an accurate investigation into the accident, they would have immediately known that this accident was not intentional,” he added. Law Leader Reporter Son Dong-wook twson@lawleader.co.kr Man in his 30s sued for insurance fraud suspected of intentional traffic accident... ‘Not guilty’ (Shortcut)

A construction company that was suspected of concluding a subcontract without the contractor's permission was cleared of charges. The Suncheon Police Station in South Jeolla Province decided not to forward Mr. A, the representative of a construction company in his 50s, who was booked on charges of violating the Framework Act on the Construction Industry on the 7th of last month. After receiving a subcontract for a new logistics center construction project from a construction company in 2022, Mr. A was accused of subcontracting to another construction company without the supplier's permission. According to Article 29, Paragraph 3 of the Framework Act on the Construction Industry, subcontracting is prohibited in principle, but when there is a need to increase construction efficiency, subcontracting is possible as an exception with written consent from the contractor. The Busan Regional Construction Management Office of the Ministry of Land, Infrastructure and Transport reported that Mr. A did not receive written consent during the subcontracting process and requested a complaint from the relevant agency. Mr. A reimburses in the event of non-payment of payment by the supplier when signing a subcontracting contract. He denied the charge, saying that he had received a payment guarantee agreeing to the method, but that this in fact amounted to written consent. The police accepted Mr. A's claim and decided not to forward the case. The police said, "The Framework Act on the Construction Industry prohibits subcontracting and requires written consent as an exception, but does not even stipulate a form or format for consent," and added, "It is confirmed that the supplier knew and approved it as a subcontract, even in the contents written in the guarantee, so the suspect is suspected. “There is not enough evidence to admit it.” Oh Sang-wan, a lawyer at Daeryun Law Firm who represented Mr. A, added, “Since the Framework Act on the Construction Industry only stipulates ‘agreement in writing,’ implied consent may also be permitted.” He added, “Even if the ‘agreement to subcontract’ content is not directly stated in the warranty, the obligation to agree in writing can be seen as being satisfied because the intention to agree to this was included.” Go Woori (wego@ikbc.co.kr)[View full article] Construction company acquitted on suspicion of subcontracting... "There is no set format for 'written consent'" (Shortcut)

Startup Company A receives investment funds and invests in Bitcoin... Afterwards, startup company B filed for bankruptcy, received investment from a VC, and then moved its business partner to a representative private corporation, effectively making the bankrupt venture industry “a case of violation of the duty of good faith… It must be resolved.” Startup company A is in the middle of a lawsuit with a venture capital (VC). This is because Company A used the investment funds to purchase cryptocurrency such as Bitcoin, contrary to the contractual purpose. VC filed a civil suit against Company A, requesting restoration of funds and compensation for damages. The criminal case filed charges of embezzlement or breach of trust. Previously, VC signed an investment contract with company A that imposed joint and several liability, joint guarantee liability, penalty for breach of contract, etc., but it was not enough to prevent the misappropriation of investment funds. After receiving investment from VC, startup company B transferred all clients of the existing corporation it pioneered to its new corporation. Investors filed civil and criminal lawsuits for violation of non-competition obligations and trade secret obligations, saying that as a result, the existing corporation's debt rapidly increased and it eventually filed for bankruptcy. According to the venture investment industry on the 13th, the worries of VCs and investors are deepening as some startups have recently intentionally filed for bankruptcy after using investment funds for personal purposes. This is because when a corporation goes bankrupt, the corporation and its debts disappear together, making it difficult to recover the investment. Kim Won-sang, senior attorney at Daeryun Law Firm, said, “There are often cases where corporate bankruptcy is filed for the purpose of seizing the corporation’s assets.” Attorney Kim said, “As long as it falls under legal excess debt (debts are greater than assets), the corporation can be declared bankrupt, and the corporation’s debts are extinguished as there is no separate exemption decision (decision that the remaining debt must be repaid). “It is abuse,” he explained. Although he did not intentionally file for bankruptcy, there are cases where the moral hazard of the individual representative was an issue. ‘Noda Lab’, a big data-based B2B trade transaction platform established in 2021, is planning to go through bankruptcy procedures. This is because the CEO fled abroad after using the investment funds without going through legal procedures. A VC who previously invested in Noda Lab believed that the company CEO had misappropriated the funds for personal purposes and raised the issue with the representative. The CEO reportedly returned the funds, claiming that he had used them for the company and not for personal purposes. However, the CEO is still absent, preventing the corporation from going through bankruptcy procedures. In 2023, Yoo Jeong-beom, CEO of Vroom operator Mesh Korea, withdrew and spent a total of 3 billion won without permission from the board of directors or court while the company was undergoing corporate rehabilitation procedures due to worsening liquidity. In July of this year, the court sentenced CEO Yoo to four years in prison on charges of breach of trust. The problem is that if the moral hazard of startups continues, the trust of VCs and investors will decline, which will likely weaken investment sentiment. One startup official said, “Investment in startups is just expanding, and I am concerned that the moral hazard of individuals will decrease the trust of VCs and weaken investment sentiment.” There is also a view that it is just a deviation of some individuals. An official familiar with the startup industry said, “With the launch of Korea Venture Investment since 2005, the government’s management and supervision functions have been strengthened, and in the private sector, accelerators (ACs) have emerged and close management is in place.” He added, “As most startup CEOs are conscientiously focusing on the growth of their companies, I hope that some cases are not seen as the whole.” Experts point out that individual self-purification is more important than supplementation through systems. One venture capital official said, “The CEO “If the duty of good faith is not fulfilled, the VC that manages the risk has no choice but to tighten the management,” he emphasized. “As this ultimately imposes sanctions on the founder’s active start-up activities, personal self-purification is necessary.” Reporter Kim Jeong-eun (xbookleader@chosunbiz.com)[View full article] Buy coins with investment money and file for bankruptcy... VCs hit hard by ‘intentional bankruptcy’ startups (Shortcut)

The court on charges of renting account numbers and public certificates said, “I did not recognize the fact of the crime.” An office worker who gave his bank account number and public certificate password to a voice phishing gang was found not guilty. On the 16th of last month, the Eastern Branch of the Busan District Court found Mr. A, a man in his 30s, not guilty, who was put on trial on charges of violating the Electronic Financial Transactions Act. Mr. A was charged with renting his access medium to a voice phishing gang in November 2023. I received it. According to the Electronic Financial Transactions Act, access media refers to means or information that can provide transaction instructions in electronic financial transactions, such as credit card public certificate passwords. Mr. A denied the charges. In the process of inquiring about the loan, a person in charge whose name was unknown said, “To increase the loan limit, you need to increase your cash holdings,” and he explained that he provided the public certificate password, etc., saying that the process of buying and selling stocks was necessary for this. He added, “We only promised to pay a fee equivalent to 5% of the principal amount when the loan was executed, and we did not provide the password in return for the loan.” The court found him not guilty. The purpose of the case in question is that the access medium in this case was not provided in exchange for providing a loan opportunity, but was merely used as a means to realize the promised loan. The court also added, “There is ample room for the defendant to believe that additional actions in the above process were necessary in a situation where the loan from the loan company was not possible, and he later voluntarily visited the police to understand the situation and made efforts to obtain proof.” Attorney Nakhyeong Kim of Daeryun Law Firm, who served as Mr. A’s legal representative, said, “Access media. “For a rental crime to be established, the suspect must receive or have the perception of economic benefits commensurate with the rental,” he said. “Through Mr. A’s KakaoTalk conversation, we were able to obtain acquittal by emphasizing that Mr. A was not aware of the crime, such as continuously checking for illegality during the loan execution process.” Digital Content Team[View full article] “Change to high interest rates”... A man in his 30s who handed over his bank account for a ‘work loan’ was found not guilty (Shortcut)

Prosecutors say, “Paper companies were set up to avoid taxes”… Mr. A “continued the operation.” Documents such as plea agreement, statement of transaction price, and shipment details were written in detail and he was found not guilty. A man who was sent to trial on charges of establishing a paper company and issuing false tax invoices was acquitted. Daeryun Law Firm announced on the 12th that the 11th Criminal Division of the Suwon District Court found Mr. A, a man in his 50s, not guilty on charges of issuing false tax invoices on the 11th of last month. In 2021, he was accused of establishing a so-called 'bomb company' that did not supply services or goods to avoid taxes and issuing false tax invoices worth about 3.3 billion won. In response, Mr. A denied the charges, saying there was no purpose for tax evasion. Mr. A's defense is that he established a new company to change the delivery form from an individual business to a corporation, but the contractor put the contract on hold, so the existing business only continued operations by signing a subcontract with the new company. The court found Mr. A not guilty. The court ruled that Mr. A established a corporate company in the same building and on the same floor as the existing business and exchanged service work, which was the same as the service provided to the contractor, so the defendant did not actually supply it. Although there was suspicion that a tax invoice was issued, the court ruled not guilty, citing the fact that documents such as monthly transaction payment statements and specific shipment details were prepared along with the subcontract agreement and building lease agreement. In addition, the court explained the background of the acquittal, saying, “It appears that the employees hired by the corporation performed the work received from the contractor and even delivered the corresponding delivery.” Attorney Park Gyu-seok of Daeryun Law Firm, who represented Mr. A, said, “According to the Supreme Court precedent, “The existence of a physical transaction means that there is a legal agreement between the parties to supply goods or services,” he explained. “We were able to prove that there was a physical transaction by emphasizing that an agreement existed based on the fact that the company established by Mr. A was an independent company and that the monthly production volume and unit price were specified in the documents submitted when requesting the contract payment.” Reporter Park Chae-ryeong (chae@kyeonggi.com)[View full article] A man who started a paper company and issued false tax invoices is not guilty (link)

Since the Trump administration strengthened mutual tariffs, Korean companies' investments in the U.S. and entry into the U.S. market have increased, but the number of cases facing difficulties due to complex legal regulations in the U.S. is increasing. Accordingly, domestic law firms are moving to build networks in the United States and strengthen legal advisory services. According to a report by the Korea Institute for Industrial Economics and Trade on the 12th, Korea's cumulative investment in the United States increased significantly from about $40 billion (about 55 trillion won) in 2014 to $130 billion (about 181 trillion won) in 2023. During the same period, the number of domestic companies entering the U.S. increased by approximately 43%, from 11,101 to 15,876. Experts emphasize that the assistance of legal experts is essential for successful entry into the U.S. market. According to a survey by the Korea Federation of Mid-sized Enterprises, mid-sized companies cited rising raw material costs as difficulties in the export market, as well as problems with applying local laws such as import regulations and customs clearance in export destination countries. An official from an IT company said, "We tried to enter the U.S. market without separate consultation, but the service opening was delayed due to legal issues related to personal information and patents." A global strategy researcher said, "The U.S. has a structure that makes it difficult for domestic companies to respond alone because the regulations of the federal and state governments are intertwined in multiple layers." He advised that it is important to receive help from experts from the early stages in order to respond to regulations such as intellectual property rights and personal information protection. In line with this trend, domestic law firms are also strengthening support for entering the U.S. market. Daeryun Law Firm signed an MOU with 'Koriny', an American real estate platform company, in March of this year, and has been cooperating with 'Bridgeway IP Law Firm', a law firm specializing in American intellectual property rights, since July to support patent applications and IP licensing practices. An office is also scheduled to open at One World Trade Center (1WTC) in Manhattan, New York. Daeryuk Aju Law Firm opened an office in Washington, D.C. in 2022, and Yulchon Law Firm expanded and reorganized its international trade, international taxation, and customs teams into a trade industry specialty team in preparation for the launch of the second Trump administration. DLG, a law firm, opened a U.S. office in Silicon Valley early this year and began providing legal services. An industry official said, “In a complex regulatory system like the U.S., it is difficult to enter the market successfully through simple contract review alone,” and added, “The demand for law firms with practical experience and are well-versed in local laws from the early stages is increasing.” Reporter Hwang Jeong-won (jwhwang@mt.co.kr)[View full article] Regulations and lawsuits are ‘an obstacle’ for companies entering the US market… ‘Speed’ of K Law Firm’s overseas expansion (Go here)

Daeryun Law Firm (Limited) is attracting attention by providing legal support for young people who have been harmed by crimes by impersonating them. According to the legal community on the 11th, Daeryun submitted a letter of appointment as a lawyer to the Daegu Seongseo Police Station on behalf of Mr. A, in his 20s, who was recently a victim of fraud on a second-hand trading platform. Mr. A suffered fraud while disposing of a luxury bag through Carrot Market, a second-hand trading platform, around June of this year. The unidentified buyer contacted Mr. A through an external channel. Mr. A, who had induced a transaction and needed to quickly dispose of the product at the time, responded to the offer and was defrauded worth 8 million won. The problem is that while looking for a law firm for legal action, Mr. A fell victim to a fraudster impersonating Dae-ryun again. The other party is known to have impersonated a Dae-ryun counselor and embezzled money under the pretense of accepting a civil or criminal case. After hearing Mr. A's sad story, Dae-ryun took on Mr. A's case. We decided to provide legal support. Attorney Young-kyung Ko of Daeryun's Gwangju branch office, who represented Mr. A, said, "I couldn't help but be angry when I heard that Mr. A, who had been going through a difficult time due to fraud, suffered secondary damage from an impersonator who impersonated our company." He added, "I want to make every effort to take additional procedures to alleviate Mr. A's injustice." Daeryun will continue to provide legal support to victims of crimes impersonating Daeryun, such as Mr. A. The plan is to provide a variety of legal support to young people and the underprivileged who are experiencing difficulties. Go Woori (wego@ikbc.co.kr)[View full article] Daeryun Law Firm helps victims of ‘Daeryun impersonation fraud’ (Click here)