D’Light advised a client that sells and entrusts mining machinery on whether it is permissible under Korean law to engage in such business in Korea.
The authorities determine whether a business is subject to regulation by making decisions based on the substance or overall structure of the business rather than fragmentarily considering the title of the contract or the portion of the contract structure. Further, it is expected that the financial authorities in Korea will strengthen regulations under the Capital Markets Act after the publications over judgment standards for investment contract securities, etc., legal advice is required when planning an investment-based business.
In this regard, D’Light drafted contracts for the sale and entrustment of mining machines and provided advice on whether the business required reporting or licensing under the Capital Markets Act, enabling our client to operate its business with minimal legal risk in Korea.
