[Law Firm Now] HwaWoo Corporate Crisis Response Team "Providing the Best Solution for Any Issue"

Construction, Consulting, and Finance Group Leaders and Key Personnel 25 Members Form Organic Organization
One-Stop Support from Legal Risk Prevention and Resolution Consulting to Rehabilitation and Bankruptcy
Successful Seminar on Responding to 'Contractors' and 'Major Creditors' in Distressed PF Sites

Editor's Note

In the series [Law Firms Now], we deliver various news such as domestic law firms' winning cases, recruitment of new members, formation of task forces, and launch of centers.

Park Young-woo, Head of Corporate Crisis Response Team at Hwawoo Law Firm, Attorney Hong Seung-gu, Attorney Kim Chang-kwon (from left). Photo by Hwawoo

[Asia Economy Reporter Choi Seok-jin] With interest rate hikes, economic recession, and the resulting stock price declines, the real estate market downturn continues, leading to the emergence of distressed project financing (PF) sites.

Major financial institutions such as commercial banks are refraining from real estate PF loans. Amid soaring construction costs due to rising prices of various building materials and a lack of available funds, construction is being delayed, heightening the risk of default by PF developers.

If this situation persists, financial institutions will have no choice but to sell off large volumes of non-performing loans (NPLs) at a discount to improve their financial soundness, and many related organizations will inevitably become embroiled in complex legal disputes.

To respond to such legal demands, Law Firm Hwawoo (Managing Partner Jung Jin-soo) established a Corporate Crisis Response Team early on August 16. The team provides comprehensive legal advice aimed at overcoming crises and securing upward momentum through ▲protection of corporate value ▲responses related to economic downturns in finance, construction, and other industries ▲protection of rights related to the deterioration of investment assets such as stocks, real estate, and virtual assets ▲and securing claims.

Hwawoo’s Corporate Crisis Response Team, composed of 25 members including 17 partner attorneys and 8 associates, consists of group leaders and key personnel well-versed in practical work from various groups such as construction, advisory, and finance.

The construction sector, which is highly sensitive to real estate market fluctuations, is led by Construction Group Leader Jung Kyung-in, who has long handled various construction-related litigation and advisory work; attorney Hong Seung-gu, a former presiding judge of the court’s construction-specialized division; Advisory Group Leader Han Sang-gu, an expert in rehabilitation matters; attorney Kim Chang-kwon, a former presiding judge of the rehabilitation court; and other litigation experts. Alongside them are attorneys Park Soo-hyun and Jo Jun-oh, who are well-versed in construction, finance, and rehabilitation practices; Finance Group Leader Kang Young-ho; attorney Park Young-woo, who heads the real estate finance team; and former Financial Supervisory Service officials Lee Ju-yong, Jung Hyun-seok, and Heo Hwan-jun, who provide multifaceted advice. This synergy enables the team to review and advise on the best options for companies in various situations. In short, the team is an organic organization capable of providing optimal solutions to clients in any corporate crisis.

Notably, attorney Hong Seung-gu (Judicial Research and Training Institute class 28), recognized as a top expert in construction litigation and having served as the head of the construction-specialized division at the Seoul High Court for the past four years, and attorney Kim Chang-kwon (class 30), who has 21 years of judicial experience including serving as presiding judge of the bankruptcy division at Changwon District Court and the Seoul Rehabilitation Court and who handled corporate rehabilitation cases for Ssangyong Motor and Eastar Jet, joined the Corporate Crisis Response Team this year, raising great expectations.

Effective corporate crisis response requires not only understanding specific laws but also comprehensive consideration of business understanding and strategy.

To achieve this, Hwawoo’s Corporate Crisis Response Team has established a systematic and organic collaboration system among experts in construction, corporate advisory, finance, and other fields. Through this, the team provides clients with one-stop services covering overall advice for preventing and resolving various legal risks arising during corporate management, as well as comprehensive support related to all procedures of corporate operations, including rehabilitation and bankruptcy.

Specifically, the team offers consulting on legal responses and effective crisis overcoming strategies tailored to each stage of corporate crisis and each stakeholder, diagnoses and builds crisis management systems, and provides advisory services on major legal issues and recent trends.

Park Young-woo, team leader of the Corporate Crisis Response Team, stated, "Hwawoo, a leading large law firm, gathers top experts with extensive experience who handle work at reasonable costs, resulting in high client satisfaction. Going forward, we will contribute to enhancing corporate competitiveness and securing market leadership through comprehensive legal review and advisory services."

To anticipate situations and issues that may arise at distressed PF sites and explore related solutions, Hwawoo held two seminars on August 15 and 21 at the Hwawoo Training Center in Asan Tower, Samseong-dong, Gangnam-gu, Seoul: and . Each seminar was a great success, attracting over 150 attendees, far exceeding expectations.

Park Young-woo commented, "The response to the seminars was warmer than expected. We confirmed that interest from businesspeople and the legal community regarding responses to the cooling real estate market and economic slowdown is hotter than ever."

Hwawoo’s Corporate Crisis Response Team has accumulated know-how through numerous advisory cases on contractors’ responsibilities at distressed projects, measures to continue projects, and management of loan claims by financial institutions. Rather than providing superficial advice, the team introduces concrete action plans, helping clients protect their rights and overcome difficult situations accordingly.