Kim & Chang, Mirae Asset may turn to allies from enemies
HDC considers hiring top-tier law firm to fight Kumho, Asiana
By Park Jae-hyuk
The saying, “Yesterday's enemy is today's friend,” could be an appropriate way to describe the recent relationship between Kim & Chang and Mirae Asset Daewoo.
The two were on opposite sides when the former represented China's Anbang Insurance Group in its legal dispute with Mirae Asset subsidiaries over a disrupted $5.8 billion deal for 15 luxury hotels in the United States, a battle which virtually ended in the victory of the Korean financial firm earlier this month.
However, the nation's leading law firm is now mentioned as a potential legal counsel of a consortium with HDC Hyundai Development Company and Mirae Asset Daewoo in its lawsuit against Kumho E&C and Asiana Airlines over a 251.5 billion won ($231 million) deposit paid before the rupture of the takeover bid for the air carrier.
According to media reports and industry sources, Thursday, HDC will soon hire its legal counsel through a public tender to counteract the litigation filed by Kumho and Asiana in November.
The firm has requested the court to allow it to withdraw the deposit from the escrow account. An escrow account is an account in which funds are held in trust until two or more parties complete a transaction.
After Kumho filed the lawsuit, industry officials expected HDC to hire Bae, Kim & Lee (BKL), another major law firm that offered advice to the builder when it was considering the Asiana takeover. Those familiar with this issue, however, said HDC is considering hiring Kim & Chang, which has offered advice to the builder since it began to reconsider the acquisition in June.
“Korean companies tend to look for Kim & Chang when their litigation becomes complicated,” an industry insider said.
An HDC spokesman declined to comment on the matter.
If HDC joins hands with Kim & Chang, this means the law firm can also help Mirae Asset Daewoo. The securities firm will be able to get back 50 billion won if it wins the lawsuit. Some observers raised the possibility of the brokerage hiring a separate law firm.
“We have kept in step with HDC in this matter, including the designation of counsels,” a Mirae Asset Daewoo spokesman said.
Kim & Chang's possible partnership with HDC, however, may cause discomfort for Korean Air owner Hanjin Group, which is accelerating its efforts for the Asiana takeover after defeating a coalition of shareholders led by the Korea Corporate Governance Improvement (KCGI).
Kim & Chang has represented Hanjin with another major law firm Yoon & Yang in the conglomerate's conflict with the activist fund. However, Yoon & Yang is representing Kumho with Shin & Kim in the builder's ongoing dispute with HDC and Mirae Asset Daewoo.
Industry officials said it is usual for law firms to turn to enemies from friends, when they represent their corporate clients.
Amid the growing expectations for the alliance between Kim & Chang and HDC, Kumho has taken steps to brace for a fierce legal battle.
In its reshuffle earlier this week, Kumho promoted its in-house lawyer Kang Yong-koo to an executive position. The company has lacked an executive with legal expertise since 2017 when Lee Yong-wook, who majored in law at Korea University and the University of Washington Graduate School, transferred to Asiana.
Industry officials attributed Kumho's recent decision to its efforts to enhance its in-house legal department, given that it is difficult to predict the outcome of its lawsuit against the HDC-led consortium.