Economic crimes concerning finance are becoming increasingly complex and difficult to investigate. In response to these changes, the Seoul Southern District Prosecutors’ Office has revived the previously disbanded Joint Financial and Securities Crimes Investigation Unit and recently renamed it the Financial and Securities Division. Investigations and trials related to finance and securities are expected to increase dramatically as a result of such changes.

In addition, various regulations of financial regulators regarding financial and listed companies are becoming increasingly complex and undergoing rapid changes due to the development of financial and capital markets, and these changes may cause unexpected variables in the business activities of financial and listed companies.

In particular, financial companies are subject to various regulations, such as licensing, registration, authorization, reporting, stability and business regulations under financial laws, corporate governance, internal control and compliance, financial consumer protection, anti-money laundering, and inspections and sanctions by financial regulators, and listed companies are subject to strict disclosure and accounting regulations imposed by financial regulators, all of which require comprehensive legal advice and counsel not only on the legal interpretation of such regulations, but also on the regulatory practices of the financial regulators based on in-depth understanding of the financial industry.

Meanwhile, concerns about delisting of companies from KOSDAQ have increased in recent years. Specific reasons include deteriorating performance. The delisting issue not only directly affects a company’s existence, but also leads to criminal punishment, so companies need to respond to this issue in a professional and systematic manner.

In response to the increasing demand for legal services related to responding to financial and economic crimes, financial regulation and delisting issues, Barun Law has organized and operates the Financial and Economic Crimes and Financial Regulation Team to provide the best possible legal services to protect the rights of its clients.

Currently, Barun’s Financial and Economic Crimes and Financial Regulation Team consists of former judges and prosecutors with extensive experience in financial and securities matters, lawyers, accountants and other professionals with extensive experience in corporate legal counseling, who have served on the capital market investigation teams of the Financial Services Commission, the Financial Supervisory Service and the Korea Exchange, and who have taken part in the decision-making processes of various governmental and institutional committees (including the Financial Development Review Committee of the Financial Services Commission, the Sanctions and Immunity Review Committee and Dispute Mediation Committee of the Financial Supervisory Service, the Financial Security Advisory Committee of the Financial Security Service, the Credit Recovery Committee, and the Listing Disclosure Committee of the Securities Market Division of the Korea Exchange), and they work together to provide the best possible solutions for clients.

Professionals Attorney Cho, Jae Bin

Attorney Choi, Jin Sook

Attorney Ahn, Ju Hyun

Financial Investigation, Litigation and Disputes
- Responding to financial and economic crimes and investigations
- Civil, criminal and administrative litigation concerning financial and securities matters
- Preservative measures, including various types of interim injunctions concerning financial and securities matter
- Arbitration filed with the Korean Commercial Arbitration Board concerning financial matters
- Dispute mediation cases filed with the Financial Supervisory Service

Permits, etc. for Financial Companies
- Providing agency services for new permit applications, registration, reporting, etc.
- Providing agency services to financial companies for permit applications, registration, reporting, etc. in the course of their business

Response to Investigations, Inquiries, and Sanctions on Financial Companies
- Advanced response to investigations and inquiries on financial companies
- Responding to investigations and inquiries on financial companies
- Preparing legal memos after investigations and inquiries on financial companies
- Responding to sanctions (imposed by the Sanctions Review Committee, Capital Markets Investigations Review Committee, Securities and Futures Commission, and Financial Services Commission) on financial companies
- Filing appeals and administrative actions against measures imposed on financial companies

Response to Listing Maintenance
- Responding to events prior to the occurrence of grounds for delisting
- Filing appeals and preparing remediation plans in the event of grounds for delisting
- Filing of interim injunctions and actions to invalidate delisting decisions
- Responding to criminal cases involving employees and officers related to delisting

Response to Accounting Audits
- Responding to accounting review and auditing by the Financial Supervisory Service before their commencement
- Responding to accounting review and auditing by the Financial Supervisory Service
- Responding to accounting auditing sanctions process (Auditing Committee, Securities and Futures Commission, Financial Services Commission)
- Filing of appeals and administrative lawsuits with respect to measures imposed after accounting auditing
- Responding to civil and criminal actions filed as a result of the measures imposed after accounting auditing

Interpretation of and Compliance with Finance-Related Laws
- Advising on finance-related laws, including review thereof
- Providing services on authoritative interpretation, no-action letters and regulatory sandboxes
- Conducting reviews of corporate governance structures, financial instruments, legality of bylaws, etc. of financial companies

Financial Investigation, Actions and Disputes
- A case involving a claim for the settlement amount in connection with the development of Gyeongnam Masan Robot Land, valued at more than KRW 100 billion
- A civil case filed among financial institutions in connection with the meat loan fraud valued at KRW 570 billion
- A case involving a claim for damages between credit card company A and its merchant shop regarding an affiliate agreement
- A case involving a claim for damages following access failure to securities company B’s trading platform
- Cases involving equity-linked funds (ELF) and equity-linked warrants (ELW)
-KIKO-related cases
-A case in which the officers and employees of a company accused of fraud, embezzlement, breach of trust, etc., after the value of virtual assets plummeted, were all acquitted
- A case on interim injunction prohibiting performance based on Total Return Swap Transaction of Daehan Real Estate Trust Co., Ltd.
- A case on Deutsch Motor’s stock price manipulation (all found not guilty)
- A case involving dispute mediation by the Financial Supervisory Service regarding Heritage Trust, a German company
- A case on the breach of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) by Chairman JH Hyun of Tongyang Group in connection with issuance of commercial papers
- A case involving a claim for compensation filed by Tong Yang Orion Investment Securities against a trust management company of the repurchase price
- A case involving dispute mediation by the Financial Supervisory Service regarding Discovery Fund
-A case in which a down payment of approximately KRW 10 billion was confiscated in the process of purchasing a renowned hotel located in the U.S. (The Supreme Court of Korea held that the hard deposit (i.e., non-refundable deposit) is a liability that should be borne by the full value acquirer (securities company))
- A case involving a claim for damages in connection with the sale of derivatives (valued KRW 40 billion) by Mirae Asset Daewoo
- A case involving the chairman of financial holding company A in connection with the breach of the Aggravated Punishment of Specific Economic Crimes (receipt of bribe) by former Special Prosecutor P
- A case involving a claim for damages against Samsung Securities in connection with imperfect sale, over-selling, and forward exchange (offshore fund)
- A case involving the breach of the Aggravated Punishment of Specific Economic Crimes (breach of trust, embezzlement) by the former chairman of Shinhan Bank
- A case involving the breach of the Financial Investment Services and Capital Markets Act by Edison Motors in connection with acquisition of SsangYong Motor
- A case involving breach of occupational trust by Korea Exchange Bank with respect to Lone Star in connection with a sale
- A case involving a claim for return of shares concerning a securities company’s electronic finance (OTP card)
- Cases involving mutual saving banks (Busan, Bohae and Samhwa Mutual Saving Banks)
- A case involving a claim for damages for imperfect sale of derivatives invested by a mid-level company (company J)
- A case involving the breach of the Aggravated Punishment of Specific Economic Crimes (fraud) in connection with issuance of asset-backed commercial papery (ABCP) by the Chinese company, CERCG
- A case involving a claim for return of trust company with respect to a matter where KRW 10 billion has been invested into a regional bank issued ABCPs having a face value of KRW 65 billion
- A case involving the breach of the Financial Investment Services and Capital Markets Act and fraud regarding the sale and purchase of shares (amounting KRW 5 billion) of a KOSDAQ-listed company
- A case involving occupational breach of trust with respect of creation of KRW 15 billion worth of CBs following acquisition of a KOSPI-listed company
- A case involving the breach of the Financial Investment Services and Capital Markets Act in connection with the issuance of CBs by a KOSDAQ-listed company
- A case where the arrest warrant for the representative director of a KOSDAQ-listed company with respect to the breach of the Capital Markets Act, including the use of undisclosed information, was dismissed and the client was found not guilty
- A litigation case where the programmer who developed and managed the Chai Pay payment is system is on trial without arrest (successfully dismissed the arrest warrant) in connection with the crash of the Terra (LUNA) coin
- A case in which we successfully persuaded the Supreme Court of Korea to render the first ever ruling in Korea holding that an agreement granting prior consent right to certain shareholders concerning major management-related matters of the company is invalid in light of the principle of equality among shareholders (The Supreme Court of Korea reversed the first instance court’s ruling)
- A case involving a claim for damages against a trust management company filed by the Korea Land Corporation with respect to inclusion of Daewoo bonds
- A litigation case filed between Korean financial institutions concerning the ratio of down payment amounting KRW 10 billion, which was confiscated during the course of overseas property purchase, to be allocated between the financial institutions (successfully prevailed in the appeal case, through which the court reversed the first instance court’s decision)

Permits, etc. for Financial Companies
-Establishing Cologne Re’s (a reinsurance company based in Germany) Korea office (obtained permit from the Financial Supervisory Service pursuant to the Insurance Business Act)
- Obtaining approval for post-investment from the Financial Services Commission in connection with acquiring shares in securities company K’s Real Estate Investment Trust
- Advising financial companies on majority shareholder eligibility screening
- Registration of the General Partner (GP) of a specialized credit finance company’s institutional private equity fund
- Obtaining approval for concurrent operation as an asset management company under the Real Estate Investment Company Act from the Ministry of Land, Infrastructure and Transport for general private equity collective investment business entity H
- Registration of general private equity collective investment business entity H as a discretionary investment business and investment advisory business

Response to Investigation, Inquiry and Sanctions against Financial Companies
- A case involving the breach of the Financial Investment Services and Capital Markets Act by the representative director of an engineering company affiliated with corporate group C
- A case involving an investigation conducted by the Financial Supervisory Service against, testimony given before the Securities and Futures Commission and investigation conducted by prosecutors against company C with respect to the breach of the Financial Investment Services and Capital Markets Act in connection with the use of undisclosed information
- A case on responding to the Sanctions Review Committee of the Financial Supervisory Service and the Financial Services Commission and a lawsuit seeking cancellation of an administrative measure in connection with the breach of the Financial Investment Services and Capital Markets Act by asset management company L
- A case involving the breach of the Financial Investment Services and Capital Markets Act due to stock price manipulation by company W
- A case involving a lawsuit seeking cancellation of an administrative sanction imposed by financial supervisory authorities in connection with the breach of the Mutual Savings Bank Act, which can lead to a financial group’s loss of majority shareholder status
- A case involving a lawsuit seeking cancellation of a disposition rejecting the renewal of loan business registration due to lack of social credit requirements set out under the Act on Corporate Governance of Financial Companies
- Advised an investigation department of the Financial Supervisory Service with respect to investigations and sanctions against major third-tier lenders and loan brokers, including company A
- Advised an investigation department of the Financial Supervisory Service with respect to investigations and sanctions against major securities companies, including company D and company H
- A case involving a lawsuit to cancel the Financial Supervisory Service’s disposition imposing penalty in connection with erroneous dividends by Samsung Securities
- A case involving a lawsuit filed seeking to cancel the Financial Services Commission’s disposition on business suspension imposed against Korea Credit Bureau (KCB) in connection with the leak of customer information by Korea’s three major credit card companies
- A case involving a lawsuit seeking to cancel salary reduction disposition due to breach of the management standards for short-term financial businesses by a general financial investment business entity
- Conducted tasks on appeals filed (appeals filed on sanctions imposed against banks, securities companies, insurance companies, etc.)

Maintenance of Listing
- A case involving a claim for damages in connection with delisting of China Gaoxian Fibre Fabric Holdings Ltd. and a claim for recourse amount against a related institution
- A case involving an interim injunction seeking to lift the suspension on sale and purchase of share certificates imposed by the Korea Exchange following a filing for bankruptcy
- A case of responding to the Korea Exchange’s reversal of listing and imposition of a penalty for failure to carry out listing requirements, and these efforts resulted in the client company’s listing being maintained
- A case involving an interim injunction with respect to the Korea Exchange’s delisting of company G
- Filing an appeal on behalf of company I in connection with the Korea Exchange’s delisting of the company and responding to review on listing eligibility
- A case involving an interim injunction seeking resumption of sale and purchase of share certificates with respect to the Korea Exchange’s measure suspending the sale and purchase of share certificates of company J and appeal against the interim in
- Responding to an interim injunction filed by company K, which was delisted by the Korea Exchange, and responding to preliminary notice of designation as a listed company failing to comply with disclosure requirements
- Resolving the suspension of sale and purchase of share certificates and maintaining the listing of company M (baby product manufacture), which was delisted by the Korea Exchange pursuant to an audit opinion (which found the company ineligible for listing), by filing an appeal against the Korea Exchange’s decision, submitting improvement plans and expert opinion, and responding to external auditor
- Matters concerning listing and public disclosures, including delisting and designation as a listed company failing to comply with disclosure requirements by the Korea Exchange

Responding to Accounting Audits
- A case involving a claim for damages against an accounting firm due to insufficient auditing of a business report
- A case involving the breach of the Act on External Audit of Stock Companies and the Financial Investment Services and Capital Markets Act in relation to fraudulent accounting (understating the allowance for bad debts of KRW 227 billion) of Daewoo Shipbuilding and Marine Engineering
- Advising the auditing department of the Financial Supervisory Service in connection with fraudulent accounting by media company M
- Advising the auditing department of the Financial Supervisory Service in connection with fraudulent accounting by KOSDAQ-listed company S (manufacturer of COVID-19 diagnostic reagents)
- Advising the auditing department of the Financial Supervisory Service in connection with fraudulent accounting by KOSDAQ-listed company S (pharmaceutical company)
- Advising the auditing department of the Financial Supervisory Service in connection with fraudulent accounting by KOSDAQ-listed company C (education company)
- Advising the auditing department of the Financial Supervisory Service in connection with fraudulent accounting by KOSPI-listed company Y (holding company)
- Advising the auditing department of the Financial Supervisory Service in connection with fraudulent accounting by KOSPI-listed company A (metal manufacturer)

Legislative Matters concerning Financial Laws and Regulations, Interpretation of Legislation and Compliance
- Provided legal advice on the possibility of imposing penalties pursuant to the Act on Real Name Financial Transactions and Confidentiality in connection with a bank account opened under a borrowed name by the chairman of corporate group S
- Provided legal advice on the Regulations on Entrustment of Services by Financial Institutions
- Provided legal advice on the Detailed Rules on Recognition of Bad Debt Loss of Financial Institution Bonds
- Provided legal advice to the Financial Services Commission (Whether daily bonus payments from virtual assets goes against the law or not, whether it is possible to impose penalty pursuant to the Act on External Audit of Stock Companies)
- Participated in the amendment of several legislations (Amendment of the Commercial Code in 2015 to make mergers and acquisition easier, enactment of the Act on Electronic Registration of Stocks and Bonds and Enforcement Decree thereof, amendment of the Issuance and Distribution of Electronic Bills Act, and amendment of the Securities-Related Class Action Act and Act on Registration of Credit Business and Protection of Finance Users and the Enforcement Decree thereof)
- Participated in consultations carried out within the government and reviewed various finance-related laws (Amendment of the Financial Investment Services and Capital Markets Act for improvement of the capital market system and to reorganize the regulations and system concerning unfair trade practices, enactment of the Act on the Protection of Financial Consumers, enactment and amendment of the Act on Corporate Governance of Financial Companies and the Enforcement Decree thereof, amendment of the Act on the Structural Improvement of the Financial Improvement of the Financial Industry for restructuring of the financial company reorganization system, amendment of the Asset-Backed Securitization Act for advancement of the asset liquidation system, amendment of the Act on Reporting and Using Specified Financial Transaction Information for improvement of the money-laundering prevention system following the discussions carried out by an international organization, and amendment of the Act on Reporting and Using Specified Financial Transaction Information and the Enforcement Decree thereof to carry out virtual asset-related policies and to introduce virtual assets, etc.)
- Matters concerning no-action letter in connection with alternative investment made by public equity collective investment business entity (company I)
- Gave lecture to the staff members of the Financial Supervisory Service taking part in the training session held as part of the Service’s training on investigation (lecture based on precedents on accounting auditing)
- Gave lecture on the Act on Electronic Registration of Stocks and Bonds to the mid-level employees and new recruits of the Korea Securities Depository, hosted by the Busan Branch of the Korea Financial Investment Association
- Advised various general financial investment business entities on financial regulation sandbox concerning token securities and related laws and regulations
- Advised on sales and purchases conducted among multi parties
- Participated in the amendment of the Regulations on Supervision of Third-Tier Lenders and the Enforcement Rules thereof, and the Guidelines on the Management and Supervision of Third-Tier Lenders
- Provided legal advice to a fractional investor in art works concerning the Financial Investment Services and Capital Markets Act, Act on the Protection of Financial Consumers, and the Act on Electronic Registration of Stocks and Bonds
- Due diligence of a private equity fund ran by an Italian healthcare company
- Participated in the amendment of the system regulating the unfair trade practices carried out in the capital market
- Presented on “Issuance and Distribution Structure of Securities Token and Measures for Development” before Kore FinTech
- Gave a lecture on the basic laws related to accounting auditing to the employees and officers of the Korean Institute of Certified Public Accountants
- Participated as a member of researchers for the publication of “Accounting Based on Principles” of the Korean Accounting Association
- Advised on “Annotated Act on External Audit of Stock Companies,” prepared by the Accounting Law Society of the Korean Institute of Certified Public Accountants
- Participated in the revision of “Analysis of Precedents per Provision on Accounting Audits” (Extended Edition) (Financial Supervisory Service, 2021)