LIN NEWS
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LIN NewsLIN LLC Professionals’ External Appointments for Q3 2025Recent external appointments of LIN’s professionals are as follows: Chul Soo Kim, Moon Joo Kim, and Jung Tae Kim Reappointed as External Legal Advisors to Korea Overseas Infrastructure and Urban Development Corporation (KIND) On September 1, 2025, Attorneys Chul Soo Kim, Moon Joo Kim, and Jung Tae Kim of LIN were reappointed as external legal advisors to the Korea Overseas Infrastructure and Urban Development Corporation (KIND). KIND was established under the Overseas Construction Promotion Act and officially launched in June 2018, and is a specialized institution dedicated to supporting overseas infrastructure and urban development projects. KIND identifies and promotes overseas infrastructure and urban development projects, and provids investment, funding, and financial advisory services in order to support the expansion of Korean companies into investment-based development projects in overseas infrastructure and urban development sectors. Since their appointment as KIND's external legal advisors on September 1, 2022, Attorneys Chul Soo Kim, Moon Joo Kim, and Jung Tae Kim have provided legal services on various issues related to KIND's overseas infrastructure and urban development projects and corporate management in general, and will continue to work diligently to help KIND grow as a specialized institution that revitalizes Korean companies’ overseas infrastructure and urban development projects. Attorney Dong Jae YI Appointed to the Investment Review Committee of the Construction Workers Mutual Aid Association Attorney Dong Jae YI of LIN LLC was appointed as a member of the Investment Review Committee of the Construction Workers Mutual Aid Association (CWMA) in August 2025. Founded in 1997, the CWMA promotes mutual aid, improve welfare, and ensures a stable post-retirement life for construction workers, who often face relatively poor working conditions, low income levels, and unstable employment. The Association conducts various support programs, including asset management to grow accumulated mutual aid contributions, and initiatives to ensure employment stability, develop and enhance vocational skills, and provide job placement services for construction workers. The Investment Review Committee is responsible for deliberating on matters related to fund management plans, fund management issues including high-value and long-term investments, and other matters deemed necessary by the Chairman. Attorney Dong Jae YI, as an Investment Review Committee member of the CWMA, will provide extensive legal support during his term to ensure the CWMA conducts its deliberations with greater integrity and fairness. Attorney Jong Sik Kim Appointed as a Member of the Listing and Disclosure Committee of the Korea Exchange Attorney Jong Sik Kim of LIN LLC was appointed as a member of the Listing and Disclosure Committee of the Korea Exchange (KRX) on July 1, 2025 (Term: July 1, 2025 to June 30, 2027). The Listing and Disclosure Committee of the Korea Exchange deliberates on the results of preliminary listing review, and deliberates and makes decisions on important matters related to listing, such as substantive reviews for delisting. Composed of experts from various fields such as accounting and law, it primarily assesses companies' eligibility for listing and maintains market transparency and fairness. Attorney Jong Sik Kim, as a member of the Listing and Disclosure Committee of the KRX, will dedicate his utmost effort over the next two-year term to ensure the Committee conducts its reviews with greater fairness and objectivity. Attorney Mi Hyun SEOL Appointed as a Member of the Home & Shopping Viewer Committee Attorney Mi Hyun SEOL of LIN LLC was appointed as a member of the Home&Shopping Viewer Committee on September 19, 2025 (Term: September 19, 2025 to September 18, 2026). The Viewer Committee of Home & Shopping is established under Article 87 of the Broadcasting Act to protect viewers’ rights and interests by representing viewers from various fields. It may provide opinions and request corrections regarding broadcast scheduling and program content. It may also request the submission of necessary materials or the attendance and responses of relevant personnel to perform its duties related to protecting viewers’ rights and interests and remedying infringements. Attorney Mi Hyun SEOL, as a member of the Home&Shopping Viewer Committee, will dedicate her utmost effort over the upcoming one-year term to ensure the Committee conducts its reviews in a fairer and more objective manner. Chang Hwan SHIN, U.S. attorney Appointed to the Appeals Review Committee of the Korea Sports Ethics Center Attorney Chang Hwan SHIN of LIN LLC was appointed as a member of the Appeals Review Committee of the Korea Sports Ethics Center on September 18, 2025 (Term: September 18, 2025 to September 17, 2027). The Appeals Review Committee of the Korea Sports Ethics Center is a deliberative body responsible for reviewing appeals filed by a complainant, victim, or their legal representative against the investigation findings of the Korea Center for Sports Ethics, and notifying them of the review results. It deliberates on appeals filed against the investigation findings of the Korea Center for Sports Ethics and renders a final decision by evaluating the legitimacy of each case. Attorney Shin Chang-hwan, a U.S.-licensed lawyer, is committed to performing his duties with the utmost integrity to ensure that the Committee’s deliberations are conducted with the highest level of fairness and objectivity. Dong Won KO, U.S. attorney, Appointed as Chairman of the Fund Management Committee of Jeju Special Self-Governing Province Dong Won KO, U.S. Attorney at LIN LLC, was appointed as Chairman of the Fund Management Committee of Jeju Special Self-Governing Province on July 25, 2025 (Term: July 25, 2025 to July 24, 2025). The Fund Management Committee of Jeju Special Self-Governing Province is an organization operated to stimulate investment and foster venture companies within Jeju Province. It was officially launched in July 2023 under the name ‘Fund Operational Committee of Jeju Special Self-Governing Province.’ The Committee aims to create a favorable business environment and contribute to revitalizing the local economy through efficient fund management. Recently, the fund management regulations were codified into an ordinance, and the Committee is undertaking various activities, including establishing funds to nurture early-stage startups. As Chairman of the Fund Operational Committee of Jeju Special Self-Governing Province, U.S. attorney Dong Won Ko is committed to performing his duties with his utmost effort to enhance the transparency and effectiveness of fund operations in Jeju.2026.01.02.
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News LetterMobility Legal Updates_[Regulations]With successive legislative measures aimed at expanding the supply of zero-emission vehicles and improving the structure of the freight transport market, both charging infrastructure providers and freight carriers need to reassess their business models and internal compliance systems. In this newsletter, LIN LLC Mobility Team introduces key legislative amendments for November 2025: △ the Amendment to the Clean Air Conservation Act (Mandatory Registration and Insurance for Charging Facilities) and △ the Amendment to the Enforcement Rule of the Trucking Transport Business Act. Amendment to the Clean Air Conservation Act (Act No. 21123) New Obligations for Providing Installation and Usage Information for Electric Vehicle Charging Facilities The amendment to the Clean Air Conservation Act passed the National Assembly plenary session on October 26, 2025. Its main contents are: 1) The creation of a new duty for those who install or operate low-emission vehicle charging facilities to register the charging facility’s installation information (such as location and scale) on the computerized network operated by the Ministry of Environment (Article 58-10, Paragraph 1 of the Act); 2) The creation of a new duty for operators of charging facilities to register usage information (such as operating status, fees, and failure status) on the computerized network to enhance user convenience; and 3) The creation of a new duty for charging facility operators to comply with charging facility management standards (to be set by the Ministry of Environment Ordinance). In summary, the amended Act requires the installation and usage information of charging facilities to be registered on the computerized network and disclosed to the public, and it imposes an obligation on charging facility operators to comply with legally established management standards. According to the National Assembly Bill Information, the purpose of this amendment is to address the increasing inconvenience for zero-emission vehicle users due to inadequate management by some charging facility operators—despite charging facilities being a core element for expanding supply and user convenience—by requiring charging facility operators to register installation information (such as location and scale) on the computerized network and to provide real-time usage information (such as charging fees), and by establishing management standards for prompt repair in case of failure, thereby enabling the systematic management and operation of charging facilities for electric and hydrogen vehicles. The amended Act will take effect on November 12, 2026, and the provisions concerning the registration of facility and usage information are scheduled to take effect on May 12, 2027. This amendment will make it easier for users to search for, reserve, and compare fees for charging stations, while simultaneously imposing a legal compliance obligation on operators to adhere to management standards, which is highly likely to serve as an impetus for restructuring the charging infrastructure market and facilitating business model transitions. Amendment to the Enforcement Rule of the Trucking Transport Business Act Relaxation of Age Requirements for Freight Vehicle Drivers and Rationalization of Regulations for Small-Scale Operators The Ministry of Land, Infrastructure and Transport amended and implemented the Enforcement Rule of the Trucking Transport Business Act on November 10, 2025 (Ministry of Land, Infrastructure and Transport Ordinance No. 1532). The key contents of this amendment are largely twofold. First, the qualifying age for engaging in freight vehicle driving has been relaxed. Previously, a minimum age of 20 years old was required to become a general freight transport worker, but this amendment lowered the age criterion to expand the scope of driving employment to young individuals aged 18 and older. Second, restrictions on the transfer of vehicles for small-scale general freight transport operators have been eased. Operators holding fewer than a certain number of vehicles (20 vehicles) were restricted from transferring or acquiring commercial vehicles for two years after acquisition, but this amendment relaxes and adjusts the transfer restriction period in connection with the number of vehicles held. This change is regarded as a reflection of the realities faced by small-scale operators who are either establishing their initial business foundation or seeking to downsize or liquidate their operations. Consequently, the amendment is expected to help alleviate labor shortages in short-distance/small freight, quick/last-mile, and parcel sorting/delivery sectors by incorporating young individuals aged 18-19 into the pool of 'legal freight vehicle drivers.' Furthermore, it is expected to contribute to the early growth of small-scale operators (holding fewer than 20 vehicles) into normal-scale operators by providing an exception to the transfer restriction period when they acquire a business in order to increase their vehicle fleet to 20 or more. *** LIN LLC has extensive experience in providing advisory and litigation services in the mobility industry, particularly in areas such as administrative regulations, and patent and trade secret disputes related to motor vehicles. Our Mobility Team consists of attorneys and experts with a distinctive interest and passion for automobiles. Should you wish to learn more about this newsletter or have any other inquiries, please do not hesitate to contact LIN’s Mobility Team. Tae Joon Bae, Esq. (tjbae@law-lin.com, +82 10 8237 8123) Min Gu Kang, Esq. (mgkang@law-lin.com, +82 10 3907 9217) Ho Yeon Kim, Esq. (hykim@law-lin.com, +82 2 3477 6300) Jeong Pil Oh, Esq. (jpoh@law-lin.com, +82 2 3477 8695)2025.11.28.
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NoticeLin Signs MOU with Korea New & Renewable Energy Association (KNREA)Mutual cooperation on new & renewable energy-related projects through legal services in the field of laws and regulations On October 26, Lin signed an MOU with KNREA to promote the development of the domestic new & renewable energy industry. The agreement was signed to provide various legal services to KNREA and its member companies, including information on new & renewable energy-related laws and regulations. Through the agreement, the two parties agreed to cooperate on ▶ improving new & renewable energy-related laws and systems ▶ providing legal advice on new & renewable energy ▶ and training on new & renewable energy. In line with the trend of carbon neutrality, Lin will exert its best to promote the sustainable development of the renewable energy industry, which can replace conventional energy using fossil fuels and nuclear power. For more information, please visit KNREA website below. http://www.knrea.or.kr/bbs/?act=bbs&subAct=view&bid=agreement&page=1&order_type=desc&seq=58282023.11.10.
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Recruitment PersonnelNew RecruitmentsWe are pleased to welcome Jung Bong Lee (Partner), Lance B. Lee (Foreign Legal Consultant - Partner), and Ki Suk Seol (Of Counsel) as new members of our Firm. 1. Jeong Bong Lee, Partner - Incheon Songdo High School(68th) - Yonsei University, Department of Law - Chungnam National University, School of Law - Korean Bar Examination (40th, 1998) - Judicial Research and Training Institute (27th) - University of Vienna – Criminal Justice Institute Visiting Scholar (2008) Past) Incheon District Public Prosecutors’ Office – Prosecutor (2001) Past) Daejeon District Public Prosecutors’ Office, Hongseong Branch – Prosecutor (2003) Past) Incheon District Public Prosecutors’ Office, Bucheon Branch – Prosecutor (2005) Past) Seoul Central District Public Prosecutors’ Office – Prosecutor (2007) Past) Supreme Prosecutors’ Office - Prosecutor Researcher (2007) Past) Busan District Public Prosecutors’ Office – Prosecutor (2013) Past) Financial Intelligence Unit (FIU) - Head of Strategic Analytics (2014) Past) Chuncheon District Public Prosecutors’ Office, Gangneung Branch – Chief Prosecutor (2016) Past) Daegu District Public Prosecutors’ Office, Seobu Branch – Chief Prosecutor, Criminal Division 3 (2017) Past) Seoul Eastern District Public Prosecutors’ Office - Chief Prosecutor, Criminal Division 5 (2018) Past) Seoul Southern District Public Prosecutors’ Office - Chief Prosecutor, Criminal Division 2 (2019) Past) Supreme Prosecutors’ Office – Human Rights Policy Officer (2020) Past) Gwangju District Public Prosecutors’ Office – Human Rights Protection Officer (2021) Past) Chuncheon District Public Prosecutors’ Office – Chief of Wonju Branch (2022) Past) Seoul High Prosecutors’ Office (Daegu District Public Prosecutors’ Office, Secondment(2023), Voluntary Resignation) Current) LIN Since his appointment as a prosecutor in 2001, Mr. Lee has served as a prosecutor at the Seoul Central District Prosecutors' Office, a researcher at the Supreme Prosecutors' Office, a prosecutor at the Busan District Prosecutors' Office, a secondee at the Financial Intelligence Unit (FIU), a deputy prosecutor at the Seoul Eastern and Southern District Prosecutors' Offices, and a human rights policy officer at the Supreme Prosecutors' Office, before finally retiring in 2023 as the Chief Prosecutor of the Wonju District Prosecutors' Office. During his 22 years and 8 months as a prosecutor, he discharged a wide range of cases, including intellectual property infringement, technology theft and unfair competition, medical malpractice, sexual assault, finance, taxation, homicide, special crime, public security, and human rights policy (due process compliance in investigations). Mr. Lee, who joined Lin as a partner in November 2023, plans to actively engage in various cases such as securities, finance, and corporate anti-corruption based on diverse investigative and theoretical experience accumulated from the prosecution. Lin boasts top domestic experts in responding to financial, corporate crimes, and other investigative matters, and we will strive to provide our clients with high-quality legal services. 2. Lance B. Lee, Foreign Legal Consultant (Partner) - Boston College Law School – J.D. - University of Virginia – B.A. Past) Dentons Lee - Chief Operating Officer, Head of International Arbitration & Litigation and Partner, 2012-2023 Past) Kim & Chang - Partner Past) STX Shipbuilding Corporation – Group General Counsel Past) POSCO – Overseas Projects Team Leader Past) U.S. Army JAG Corps – Trial Counsel, Prosecutor and Captain Past) Gainer, Rient & Hotis - Attorney Current) LIN – Head of International Arbitration & Litigation, Partner (Present) Mr. Lee, a U.S. attorney, was responsible for various international arbitration and litigation cases for 11 years at Kim & Chang, representing numerous international corporations and diverse fields. Serving as General Counsel at STX Shipbuilding Corporation and Head of the International Legal Team at POSCO, he handled tasks such as international arbitration, international litigation, IP, corporate M&A, contract negotiations, and joint investments for global conglomerates. Subsequently, as a partner at the Seoul Office of Dentons, he worked for 11 years as the Head of the International Arbitration/Litigation Team, leading numerous international arbitration cases as lead counsel. In 2024, for the first time in history, more than half of the global population will be holding elections, signaling the end of America’s “unilateral hegemony” and prompting the world to prepare for more disputes. With major industrial powers intensifying their industrial policies and protectionist measures to secure leadership in advanced and eco-friendly industries post-election, there is an anticipated increase in international disputes, particularly in advanced technology sectors such as semiconductors and information technology (IT). Mr. Lee, a foreign attorney leading the International Arbitration/Litigation Team, will leverage his experience and expertise to actively discharge legal advice on the prevention and resolution of international disputes for various global corporations based on his accumulated knowledge and professionalism. 3. Ki Suk Seol, Of Counsel - Hongik University, Department of Architecture - Kyungpook National University, Graduate School of Law, - KAIST, Intellectual Property Graduate School - Bar Examination (3rd) Past) Eland Group, Legal Department Past) Hyundai Engineering, Legal Department Past) Ministry of Justice, Legal Affairs Officer Past) Ministry of Justice, Legal Affairs Secretary Current) LIN Mr. Seol, as an in-house counsel for a large corporation, has accumulated expertise in a wide range of legal affairs that can arise within the company, including civil and criminal litigation and consultation, fair trade practices, compliance, intellectual property, construction, and labor-related dispute management. Subsequently, serving as a Legal Affairs Secretary at the Ministry of Justice, he handled administrative adjudication and litigation, legislation drafting and revision, interpretation of laws and rights, review of government and legislative bills, formulation of legislative strategies, improvement of attorney and notary systems, and enhancement of legal technology systems. Through these roles, he has built expertise in planning, administration, and legislation. Amidst the ongoing challenges such as the increase in unsold and unoccupied properties, rising construction costs, high interest rates, and stagnation in real estate PF, it is anticipated that legal disputes and litigation among real estate market participants, including developers, contractors, financial institutions, trustees, and local housing associations, will continue to rise. Mr. Seol, who has served as an in-house counsel for a global integrated construction company, has handled a wide range of cases from civil and criminal matters to fair trade, construction, labor, and compliance issues, from the client's perspective, collaborating with various major law firms. Drawing upon his extensive practical experience accumulated in the field, he is committed to providing tailored solutions, not only advisory services but also litigation support, to corporate clients. 4. Recruitment of Foreign Lawyer With recent concerns over deflation in China, attitudes of Korean companies towards China have become notably cautious. Consequently, there is a growing need for professional advice regarding entry into the Chinese market. Recognizing this demand, Lin has recently recruited Ms. Wenpu Yang (Chinese attorney), aiming to provide high-quality legal service that aligns with our clients’ business strategies and management objectives on various issues related to Sino-Korean business relations. Going forward, Lin promises to continuously recruit verified talents in various fields to ensure customer satisfaction.2024.02.05.
[Edaily] Attorney Young-hoon Kim of LIN LLC – Creating Meaningful Precedents for Those Standing Alone Against Public Power
▲ Young-hoon Kim, Attorney at LIN LLC
Attorney Young-hoon Kim, a partner at LIN LLC, joined the firm this past February after taking voluntary retirement from the judiciary. Kim began his legal career in 2001 as an army judge advocate, and was appointed as a judge in 2004. He is a distinguished former member of the elite judiciary, having served in key positions such as Research Commissioner at the Supreme Court, Director of General Personnel Affairs at the National Court Administration, and Judge at the Seoul High Court.
Regarding his decision to join LIN rather than a conventional big law firm, Kim explained:
“I discerned infinite potential in its rapid growth and its young, dynamic organization.”
He added,
“Fueled by its rapid growth, LIN is a unique firm where dynamic partners in their 40s and 50s lead the way, seamlessly integrating both advisory and litigation services. I want to take on a broader role that encompasses advisory services, leveraging my judicial experience to proactively design strategies for pre-emptive risk management..”
Throughout his judicial tenure, Kim strived to establish meaningful new precedents rather than opting for conventional or "safe" rulings. While serving at the Gwangju High Court, he rendered a courageous ruling in a lawsuit regarding the law school interview of a Seventh-day Adventist student, respecting choices made according to religious faith.He emphasized:
“The measure of the rule of law begins with consideration for minorities.”
In criminal cases, Attorney Kim has consistently prioritized the right to defense and the principle of due process.
He stated:
“Confessions or indictments derived from mobile phones voluntarily submitted without a warrant are frequent occurrences. In particular, suspects with little social experience can easily fall victim to such situations, which is why more meticulous institutional safeguards are necessary.”
Recently, Attorney Young-hoon Kim identified Artificial Intelligence (AI) as a pivotal issue in the legal market. He stated that AI technology has evolved beyond being a mere subject of interest and is now directly linked to the survival of legal professionals, emphasizing the urgent need for legal services that are backed by in-depth analytical and interpretative capabilities. In response, LIN has launched task forces and specialized teams to proacticely address the demands of emerging sectors, such as Commercial Act amendment, energy, and the healthcare industry.
"Drawing on his broad experience in criminal, civil, family, administrative, and warrant cases, Kim expressed his ambition to move beyond the inertia of simply applying existing precedents and instead focus on establishing new legal interpretations and precedents.”
He noted,
“I have the experience of having my interpretation, which differed from existing precedents, upheld by the Supreme Court in a case involving the recovery of premiums (Gwonrigeum) under the Commercial Building Lease Protection Act.” He added, “Rather than conservatively following past rulings, I will present new standards through creative legal reasoning.”
For further details, please refer to the original article below.
Original article:
Edaily
https://www.edaily.co.kr/News/Read?newsId=01699046642235504&mediaCodeNo=257
Attorney Byung-hwa Lee of LIN LLC:Divorce Cooling-Off Period – Why a Separation without Haste Is More Beautiful [Attorney Byung-hwa Lee’s Law on Farewells and Those Left Behind]
▲ Attorney Byung-hwa Lee, LIN LLC
■ The First Step in an Uncontested Divorce
An uncontested divorce (divorce by mutual agreement under the Civil Act), as the name implies, is a relatively straightforward procedure that proceeds if the couple agrees on the intent and conditions of the divorce. It allows the couple to formalize the end of their marital relationship in a short time at a lower cost without the need for a legal battle in court as in the case of litigation.
The process begins with the couple submitting an application for confirmation of mutual consent to divorce to the court. The court then provides guidance on the divorce process, and recommends counseling with a professional counselor if needed. Subsequently, the court grants a cooling-off period to determine whether the couple truly desires a divorce.
■ The Meaning and Duration of the Cooling-Off Period
The cooling-off period prevents couples from deciding on divorce based on temporary emotions or impulses, allowing them sufficient time to contemplate practical matters. Introduced through the 2007 amendment to the Civil Act, the system allows the couple to calm their emotions and pre-plan the practicalities of their post-divorce lives, including property division, child custody, and housing issues.
The duration of the cooling-off period varies depending on whether the couple has children. If there are minor children (including an unborn child), the period is three months. If there are no children or only adult children, the period is one month. However, in cases involving domestic violence or urgent circumstances, couples may apply to the court to waive or shorten the period by submitting a written statement of reasons.
■ Confirmation of Intent, Agreement on Child Custody, and Registration
Once the cooling-off period ends, the couple must appear before the court again to receive a final confirmation of their intent to divorce. Especially when there are minor children, they must submit an agreement on child custody and the designation of parental rights holders, or a certified copy of a Family Court judgment. Such agreement must comprehensively address core matters affecting the child’s life, such as designating the custodial parent, determining child support obligations, and establishing visitation rights, which serve as a legal safeguard that the child's welfare. Based on this agreement, the court prepares a "Record of Child Support Obligations," which can be used as a basis for compulsory execution (enforcement) should child support payments not be made in the future.
Once the court grants confirmation of mutual consent, the divorce becomes legally effective only upon filingthe divorce registration with an attached certified copy thereof. This registration can be completed by either spouse independently and must be finalized within three months. Notably, the intent to divorce can be withdrawn at any time prior to this filing. In other words, until the very last moment of finalizing the divorce, the door to reconciliation remains open.
■ In Conclusion – Preparing for a New Beginning Beyond Goodbye
Divorce is not the end, but a new departure. To ensure that this departure is not followed by regret, the choices made must be well-prepared. An uncontested divorce is a system meant to help the parties involved organize their lives in a responsible manner. The cooling-off period is at the heart of this system.
The cooling-off period is not meant to bring the marital relationship to a halt, but to offer a short pause to reflect on whether reconciliation is possible. Even if the couple ultimately chooses separation, if they can settle their emotions, reshape their children’s lives, and thoughtfully design their own future through this period, the wait is never in vain. A separation that is not rushed can become the beginning of a more mature life.
For further details, please refer to the original article below.
Original article:
Today News
https://www.ntoday.kr/news/articleView.html?idxno=117551
[Impact of the Commercial Act Amendment] Interview with Attorney Ji-ho Kim: Expanded Directors’ Duty of Loyalty – High Hopes for Shareholder Protection Amid Remaining Challenges
The amendment to the Commercial Act expanding the scope of directors’ duty of loyalty to include shareholders in addition to the company has recently passed the National Assembly. The legal community is responding with both welcome and concern. While expectations are high for the law to enhance legal protection of shareholder interests, there are concurrent concerns regarding a potential surge in litigation seeking to hold directirs liable for alleged breaches of duty. For this reason, experts emphasize the need for companies to strengthen their decision-making processes and ensure they are objective and well-documented.
One of the core elements of the Commercial Act amendment passed on the 3rd is the revision of Article 382-3 (Directors’ Duty of Loyalty). Previously, this article only required directors to “faithfully perform their duties for the company in accordance with laws and regulations, and the company’s articles of incorporation.” However, the revised article mandates that directors owe a duty of loyalty to shareholders as well. New provisions have been added requiring directors to i) protect the interests of the total shareholders’, and ii) treat the interests of all shareholders fairly in performing their duties.
Legal experts evaluate this change positively, noting that it will lead directors to be more cautious in their decision-making and enhance both shareholder and corporate value since the newly imposed duty also requires directors to fairly treat shareholder interests.
Observations have also been raised that this shift will exert a positive influence on environmental, social, and governance (ESG) management. Attorney Ji-ho Kim of LIN LLC commented:
“Companies are highly likely to introduce institutional mechanisms to fulfill their duty of loyalty—such as director nomination committees and compensation committees—to enhance the board’s independence and transparency. This could improve corporate governance and foster a greater commitment to ESG management aimed at long-term protection of shareholder interests.”
She added that if a director’s decision conflicts with the interests of certain shareholders or is deemed to have violated the duty of loyalty, the risk of lawsuits seeking to hold directors legally liable may increase significantly. In particular, regarding criminal liability, the applicability of breach of trust (professional malfeasance) may expand.
Kim explained:
“Previously, precedents held that directors do not stand in the position of those who manage the affairs of individual shareholders. However, this amendment may categorize directors as fiduciaries , meaning that violations of this duty resulting in shareholders’ loss (such as dilution of share value) is more likely to be recognized as a criminal breach of trust.”
As a countermeasure, Attorney Kim suggested enrolling in Directors and Officers (D&O) liability insurance. She advised:
“While joining a DOA liability insurance policy that covers damage claims by minority shareholders may serve as a safety net for directors, it is essential to verify whether the exemption clauses are overly broad and whether there are special riders that specifically cover lawsuits filed by such shareholders.”
For further details, please refer to the original article below.
Original article:
Bloter
https://www.bloter.net/news/articleView.html?idxno=640217
