[Law Firm Now] Sejong Digital Industry Team "Customized Regulatory Solutions for Digital Innovation Clients"

Old and Complex Regulations... Exploring Solutions for Business Execution
Breaking Industry Boundaries and Utilizing Studies and Networks

Editor's Note [Law Firms Now] delivers various news such as recent winning cases of domestic law firms, recruitment of new members, launch of task forces, and establishment of centers.

Moon Moo-il, Chief Attorney at Law Firm Sejong (left), Oh Jong-han, Chief Attorney, Michael Jang, Foreign Attorney (Australia), Jeong Chan-mook, Attorney, Kang Shin-wook, Attorney, Hwang Hyun-il, Attorney, Noh Jin-hong, Attorney, Choi Jae-yoo, Advisor, Lee Chang-hoon, Attorney

[Asia Economy Reporter Kim Daehyun] Industries are rapidly changing centered around digital platforms. New industries such as the metaverse and non-fungible tokens (NFTs) have emerged through the convergence of online and offline. The problem is that related laws and policies have not developed accordingly and remain stuck in the past. As a result, companies challenging digital innovation often face complex and diverse regulations and frictions, leading to situations where they inevitably become frustrated.

According to law firm Sejong (Chief Attorney Oh Jonghan) on the 9th, the recently launched 'Sejong Digital Industry Team' provides customized legal services to financial companies pursuing digital transformation, big tech and platform companies, startups, and more.

The Digital Industry Team broke down internal boundaries first. Judging that it is no longer meaningful to conventionally divide teams by industry, experts from information and communication technology (ICT), finance, fair trade, mergers and acquisitions (M&A), and other fields joined. They proactively advise clients by identifying changing legal demands and potential disputes to consider at different stages during the emergence of new industries and technological development. Related studies are also conducted. The network accumulated so far is actively utilized as well. Even during work progress, no distinction is made between areas.

Providing advisory opinions to the government and National Assembly is also an important task. They continuously refine the regulatory sandbox system (which exempts or postpones existing regulations for new products and services for a certain period) and participate in revising related laws that affect companies involved in the digital industry. This is to establish a legal and institutional foundation for new markets to settle.

The Digital Industry Team is co-led by attorneys Kang Shinwook (Judicial Research and Training Institute class 33) and Hwang Hyunil (Bar Exam 2nd). Attorney Kang is a leading Korean ICT specialist who worked for over 10 years at government agencies such as the Ministry of Information and Communication and the Korea Communications Commission. He successfully handled fundamental changes in the paid broadcasting market structure, including the 'SKB-T-Broad M&A' and 'Hyundai HCN physical division,' and last year, he represented SKB in the 'SKB-Netflix network usage fee lawsuit,' which set a new milestone in Korea's internet ecosystem, securing a victory.

Attorney Hwang, who worked at the Financial Services Commission and Financial Supervisory Service, is also an expert in new industries. Having participated in revising electronic financial supervision regulations for the convergence of finance and digital, he currently leads the fintech and virtual asset teams at Sejong. Recently, in the injunction case to suspend the delisting effect filed by WEMIX, he represented the exchange Dunamu and obtained a dismissal of the injunction.

Additionally, former Prosecutor General Moon Moo-il (class 18), a prominent 'special prosecutor,' fair trade expert attorney Lee Changhoon (class 33), attorney Jung Chanmook (class 37), who worked for over 10 years at the Financial Supervisory Service, and advisor Choi Jaeyu, who served as Vice Minister of the Ministry of Science, ICT and Future Planning and Director of Planning and Coordination at the Korea Communications Commission, are also active in the Digital Industry Team.

Sejong regards 'clients' as the best teachers based on their experience advising and representing leading digital industry clients. Since legal issues related to new industries are not yet systematically established, it is difficult to obtain knowledge from existing literature.

This advisory approach has led to various digital innovation achievements by clients. One representative case is Shinhan Bank's 'disposable cup deposit refund service.' Since December last year, when consumers purchase products using disposable cups, they pay a price including a deposit, which is refunded upon returning the cup. The key is to enable consumers to easily get their deposit back. Through advice from the Digital Industry Team, Shinhan Bank was able to realize this within its own app by issuing prepaid electronic payment instruments permitted under the Banking Act.

KB Bank's MVNO (Mobile Virtual Network Operator) faced issues due to various regulations premised on the idea that 'banks only provide financial services.' The Digital Industry Team provided comprehensive legal advice on telecommunications and financial regulations, and in April 2019, KB Bank became the first in the banking sector to receive approval for innovative financial services and launched an MVNO product the same year. This was the first case where a bank sold telecommunications services, expanding the scope of incidental business of financial companies into non-financial business.

Furthermore, the Digital Industry Team also provided advisory services related to Korea Communications Commission filings so that the global truck company Scania could collect location information of trucks sold in Korea and operate smoothly. Since few countries have entry regulations like Korea's Location Information Act, global companies faced difficulties complying with domestic regulations, but the Digital Industry Team actively communicated with regulatory agencies and completed the filings promptly.

Attorney Kang said, "Clients preparing new businesses want answers not about reviewing current regulations but about 'how to execute their business.'" He added, "The Digital Industry Team looks for ways to support clients' digital innovation without being confined by legal issues." He also said, "We plan to actively develop legislative ideas and propose them to the National Assembly and government," adding, "We will balance government and client positions to create a foundation for related markets to be activated."