[Invest&Law] Yulchon Receives Record-breaking Fee for Korea Zinc Dispute

Received Both Success and Hourly Fees
Impact of a Dispute Where the Company's Fate Was at Stake

It has been confirmed that Yulchon LLC received a fee amounting to several billion won after successfully defending Korea Zinc in an injunction case related to the Korea Zinc management rights dispute. Since the dispute was considered a matter of 'life and death' for Korea Zinc, Yulchon reportedly received not only a success fee but also hourly fees.

The market views the amount as quite substantial for a single injunction case. There is also an assessment that it is somewhat unusual for Yulchon to have received both a success fee and hourly fees.

An attorney from a major law firm said, "The Korea Zinc management rights dispute became a social issue, and each injunction case could have had a significant impact on the direction of management control. Many expected the fees to be large," adding, "Even so, receiving several billion won for just one case is unprecedented."

Experts predict that as management rights disputes continue to increase and become more complex and diverse, the scale of fees for injunction cases will also grow. Another attorney from a major law firm said, "Given that the fate of the company is at stake, it will no longer be surprising in the future for a single case to command a fee of several billion won," and added, "Since the firm succeeded in a major defense, clients have no choice but to pay accordingly."

An attorney from a mid-sized law firm also commented, "Unlike ordinary civil cases, advisory or injunction cases related to management rights disputes cannot be handled slowly and require concentrated response in a short period of time," and added, "Even in less publicized or completely unknown cases, not just high-profile ones like the Korea Zinc case, it is often the case that similar fees are paid per injunction case."

The consortium of Youngpoong and MBK Partners, which is on the opposing side of Korea Zinc, has appealed the case. The appellate review is currently underway at the Seoul Central District Court. The Youngpoong-MBK side submitted a request for a hearing date on April 30, but the date has not yet been set.

Han Suhyeon, Legal Times Reporter

※This article is based on content supplied by Law Times.