Creating and reorganizing the organization
Taking the lead in capturing the new market
With the enactment of the Act on the Protection of Virtual Asset Users (Virtual Asset Act) from the 19th, which focuses on protecting virtual asset users, prohibiting unfair trading practices, and strengthening financial authorities' supervision, market transparency and safety are expected to improve. However, financial institutions and virtual asset service providers now face the challenge of effectively responding to some strengthened regulations and sanctions. In response, the so-called top 10 law firms, including Kim & Chang and Bae, Kim & Lee, are establishing dedicated organizations or strengthening existing ones to capture market share in the virtual asset sector.
Law firms Taepyungyang and Hwawoo recently established dedicated teams. Taepyungyang launched the Future Finance Strategy Center in May, led by Han Joon-sung, a senior advisor who previously served as CEO of Hana Financial Group GNL International and vice president of Hana Bank, along with experts from financial and IT-related institutions. Han, the center head, said, "As the rapidly changing digital finance sector is expected to see a significant increase in demand for legal advice, we organized the center by subdividing and specializing the field. We will meet the diverse needs of companies developing financial digital business strategies as well as devise response strategies for new sanctions."
Hwawoo has also proactively responded by forming a Virtual Asset Unfair Trading Investigation Response TF team since May. Led by attorney Kim Hyung-rok (52, Judicial Research and Training Institute class 31), a former head of the Financial Crimes Division 2 at Seoul Southern District Prosecutors' Office, the team consists of 35 experts including senior advisor Kim Yong-tae, who previously served as head of the Financial Supervisory Service’s Electronic Finance Team and Fintech Innovation Office. The members are divided into specialized areas such as responding to Financial Supervisory Service investigations, Capital Market Investigation Deliberation Committee and Securities and Futures Commission, as well as special judicial police and prosecution investigations.
Kim & Chang has been operating the largest domestic law firm group called the ‘MBD Group (Metaverse, Blockchain, Digital Assets Integrated Group)’ since 2021. Led by attorneys Eun Hyun-ho (56, class 25) and Sung Beom-gyu (53, class 25), the group includes about 60 members comprising lawyers, patent attorneys, accountants, academics, and personnel from related institutions with deep understanding of the field. Additionally, Kim & Chang is forming a specialized team to establish internal control systems to prevent unfair trading and to respond to unfair trading investigations in preparation for the Virtual Asset Act effective on the 19th.
Bae, Kim & Lee launched its ‘Virtual Asset Dedicated Team’ in 2018. Currently, the team consists of about 20 experts including attorney Yoon Jong-soo (60, class 22), focusing on virtual assets and blockchain. The team has recently achieved results such as being the first in the industry to receive designation as an STO Innovative Financial Service following the announcement of the STO guidelines. On the 18th, the day before the Virtual Asset Act takes effect, the team plans to hold a public seminar with affiliated attorneys and related experts participating as panelists.
Yulchon, with its ‘Virtual Asset & Blockchain Team’ established as early as 2016, is timely organizing the ‘Virtual Asset Crime Response TF’ and ‘Token Securities TF.’ The teams are led by attorneys Kim Ik-hyun (46, class 36) and Kim Si-mok (49, class 33), who led investigations into the Terra Luna incident and Lime Asset Management’s domestic and overseas private equity fund investigations.
Sejong and Jipyung are responding mainly through task forces established last year in line with the prosecution’s joint investigation unit launch. Sejong established the ‘Virtual Asset Investigation Response Center’ led by attorney Lee Jeong-hwan (53, class 29), a former deputy chief prosecutor at Seoul Southern District Prosecutors’ Office and legal advisor at the Financial Services Commission. The center collaborates with the ‘Virtual Asset Team’ launched in 2018 for advisory work. Jipyung is responding through the ‘Virtual Asset Criminal Response TF’ established last year, led by attorney Park Seung-dae (54, class 30), a former deputy chief prosecutor at Seoul Southern District Prosecutors’ Office, with about 20 legal experts in the field.
Barun is responding with the ‘Digital Asset & Innovation Industry Team’ led by attorney Han Seo-hee (44, class 39). Daeryuk Aju assigns advisory work on virtual asset issuance and listing to the ‘Metaverse & Blockchain Legal Support Group,’ while related criminal cases are handled collaboratively by the ‘Investigation Response Group Virtual Asset Team.’ Both groups are led by attorney Shin Byung-jae (51, class 34). Dongin operates the ‘Virtual Asset & Financial Regulation Response Team’ led by attorney Kim Ji-yong (44, class 39), along with attorneys Kang Min-joo (39, class 42), Lim Bok-gyu (59, class 20), and foreign attorney Seo Deok-woo.
Yoo Ji-in, Legal Times Reporter
※This article is based on content supplied by Law Times.
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