[Invest&Law] Standing Out in US Local Litigation... Kim & Chang Wearing Down the Threshold

Collecting Evidence Documents for Technology Leakage and Patent Infringement
Discovery Procedures
Building Monopoly Position
Handling Many Responses and Consultations

Companies knocking on the door of Kim & Chang, regarded as the "No. 1 law firm in Korea," have recently increased significantly. These are mainly companies that have filed or faced lawsuits in the United States. It is reported that they frequently entrust Kim & Chang with handling and advising on the U.S. 'discovery' procedure.

Kim & Chang Law Office [Image source=Yonhap News]

According to the business and legal circles on the 17th, Kim & Chang is standing out in the discovery system, which greatly influences judgments in U.S. litigation procedures. Discovery is a process of collecting evidence and documents related to a case from the parties involved or third parties before the main trial proceedings begin. If materials are intentionally concealed, destroyed, or lost, it results in disadvantages in court. A lawyer familiar with U.S. litigation conveyed that "It is safe to say that Kim & Chang has virtually established a monopoly position regarding discovery in Korea."

Domestic Headquarters Also Bear the Burden of Proof When Litigation Occurs in the U.S.

When litigation occurs in the U.S., courts often proceed in a way that holds the domestic headquarters responsible for the burden of proof, leading to an increase in cases where companies seek assistance from domestic law firms. Lawsuits mainly arise concerning damages related to technology leakage and patent infringement.

According to the legal community, Kim & Chang operates a ‘Digital Forensics & Discovery Group’ composed of about 140 lawyers and specialists tailored to meet corporate demands. Kim & Chang introduced, "We possess world-class digital forensics and discovery specialized tools and our own server system, enabling us to handle, analyze, review, and store large volumes of data."

Excellent Evidence Collection Capability

Kim & Chang is especially praised for its outstanding ‘evidence collection’ capability. A representative case is the lawsuit related to the ‘Taean oil spill accident’ that occurred offshore near Taean, Chungnam, in December 2007. Kim & Chang legally represented the Protection and Indemnity (P&I) insurer, the primary party responsible for compensation in this accident. During the lawsuit, while the P&I and other parties related to the oil tanker and Samsung Heavy Industries and others related to the marine crane fiercely disputed responsibility, Kim & Chang quickly secured the oil tanker’s black box, significantly turning the tide of the lawsuit. Our courts finally confirmed the total compensation amount for the accident at 432.9 billion KRW in September 2019.

Discovery Became Crucial After LG and SK Battery Lawsuits

Companies have become increasingly alert to discovery responses as the outcomes of corporate lawsuits in the U.S. are determined by the discovery process. It is reported that the ‘battery lawsuit’ between LG Energy Solution and SK Innovation from 2019 to 2021 had the greatest impact.

LG Energy Solution filed a trade secret infringement lawsuit against SK Innovation in April 2019 at the U.S. International Trade Commission (ITC) and the Delaware Federal Court, alleging that SK Innovation poached 76 key personnel from its battery business division between 2017 and 2019. During the discovery process conducted before the trial, SK Innovation omitted some evidence that could prove the absence of trade secret infringement and intent, which influenced the court to rule in favor of LG Energy Solution. This case was settled in April 2021 when both companies agreed not to pursue further litigation. Discovery is expected to continue to be a prominent issue among Korean companies engaged in lawsuits in the U.S.