HMP Law has joined the International Bar Association as a Group Member[removed][removed]

[Hankyung] HMP Law names Kyun-je Park as new CEO, Managing Partner

https://www.hankyung.com/society/article/201904192507i 

[Directory listing] HMP Law listed in In-House Community

[Directory listing] HMP Law listed in the Asia Business Law Journal directory

[Cryptocurrency] HMP Law informs Seoul-based diplomats on Korea

  On Wednesday 18th April, HMP Law partner lawyer Chan Sik Ahn delivered a lively and informative presentation about cryptocurrencies and Korean laws and regulations to an audience of 13 diplomats and embassy staff from Belarus, the United States, Canada, Switzerland, Singapore, Japan, Finland, the Netherlands, Germany, France, Italy and New Zealand.   The lunchtime briefing covered topics from the legal definition of cryptocurrency, the legal status of cryptocurrency exchanges, how an initial coin offering (ICO) could legally be held in Korea, as well as tax and other related issues. At the end, Mr. Ahn provided an overview of likely future Korean legislation to regulate the cryptocurrency space. At the end of the presentation, there was a question and answer session, and attendees also spoke about the legal situation in their home countries. If your company, chamber of commerce or embassy would like to request a free briefing on cryptocurrencies and the law, please write to Jacco Zwetsloot at jacco@hmplaw.com 

[Upcoming event] HMP lawyers to speak at AMCHAM CFO Committee Meeting

HMP lawyers Hye Yeon Lim and Colin Nam to speak at the upcoming AMCHAM CFO Committee Meeting on 15th March. Click here for details: http://www.amchamkorea.org/page.php?menu=0410001&wr_id=295   

[Aju Business Daily] Is it possible to tax cryptocurrencies?

 A translation of a column published in the Aju Business Daily at http://www.ajunews.com/view/20180108100012417 by Kim Sang Jun, Certified Public Accountant and member of HMP Law’s Tech & Comms team.As cryptocurrencies have come into spotlight in Korea, investors may ask whether they are taxable. In this connection, the following taxes should be considered: income tax, corporate tax, capital gains tax, inheritance tax, gift tax, value-added tax, and transaction tax.First, we must examine whether personal earnings from cryptocurrencies trades fall under business income or capital gains. If a person engages in trading or investments in cryptocurrencies for business purposes, earnings generated will be classified as business income, which will be included in global income and be subject to a progressive tax as part of the total income of individuals. Thus, income tax will be levied on such earnings. On the other hand, if a person does trading only for investment purposes, similar to investments in stocks, earnings have the nature of capital gains. According to the Income Tax Act (adopting the positive system regarding capital gains), capital gains tax is deemed difficult to be levied on proceeds from the sale of cryptocurrencies. Given this, tax laws should be rearranged to impose taxes on capital gains. In other countries, capital gains tax is levied on investment returns and income tax is on business activities. Therefore, as the government decides its position, capital gains tax could be levied on cryptocurrency trades.If a corporation earns income cryptocurrency trades, corporate tax can be levied in accordance with the current Corporate Tax Act. The Corporate Tax Act stipulates that increased assets of a corporation shall be deemed corporate income, regardless of the source, and shall thus be subject to the imposition of corporate tax.Value-added tax is the most controversial issue. Korean tax authorities show a somewhat equivocal position: if cryptocurrencies are used as a service, they are taxable; but if used as a currency, they are non-taxable.  In connection with the imposition of value-added tax, there are 2 theories: i) cryptocurrencies are deemed as either an intangible asset with a financial value, or as a work of art and should thus be subject to value-added tax; and ii) crytocurrencies are deemed as a currency, means of payment or financial instrument, and should be thus exempt from value-added tax. Another theory is that either taxation or exemption should apply, in accordance with the details of the trade concerned. In foreign countries, cryptocurrencies are generally exempt from value-added tax. Cryptocurrency trading is typically based on a high degree of anonymity. The tax authorities may have practically difficulties in obtaining relevant data. For the purpose of reasonable taxation, proper measures to identify and collect gains on which taxpayers did not file tax returns should be decided upon. The type and details of tax to be imposed on cryptocurrency exchanges are of great importance to secure such measures. The attention of the public is now keenly focused on precisely what taxation policies the government will declare to deal with cryptocurrencies.   

[Wall Street Journal] [Chan-sik Ahn] North Korea Is Suspected in Bitcoin Heist

SEOUL - Investigators in South Korea are looking into North Korea's possible involvement in a heist from a bitcoin exchange that collapsed here on Tuesday, according to people familiar with the situation, as the sanctions-choked regime develops new ways to raise money.  

[Forbes] [Chan-sik Ahn Forbes Interview] 5 Times Cryptocurrencies Rocked South Korea In 2017

  For tech around the world, 2017 was the year of cryptocurrency. The heart-stopping volatility of Bitcoin and Ether is even more inflated in South Korea, where Bitcoin reached a whopping 25 million won ($24,000) on Dec. 8. With 2 million people buying into digital currencies, the Korean won processes the third-highest volume of Bitcoin transactions behind the dollar and yen. That fire is still ablaze despite authorities eyeing heavy-handed regulations. South Korea has become a stage for the clash between conservative regulators and thrill-seeking investors. Here are five ways the cryptocurrency craze rocked South Korea this year. 1. South Korea has its first ICOs (May)   ON South Korean fintech company Blockchain OS issued the country’s first initial coin offering in May. An ICO of 50 million BOScoins through a Swiss-based foundation finished in nine minutes in exchange for 6,900 Bitcoins. The volume of the ICO attracted a lot of attention and interest in the scene from South Koreans. Soon after, ICON launched its ICX token through a Swiss-based foundation in September, raising 150,000 Ether (then $42 million) in its presale to power a blockchain that aims to hyperconnect the country. Glosfer, another startup, raised 15 billion won ($13 million) in an ICO pre-sale Sept. 25. 2. The Kimchi Premium hits new heights (July) South Korea was swept mysteriously by Ethereum fever, leading to local prices hitting 30-50% above the global average. With such limited investment opportunities -- even most gambling is illegal -- the risk-takers were ready to pour hot money into the digital currency market. Increased traffic during peak trading prices regularly brought down servers at the exchanges, where the so-called Kimchi Premium soared as high as 50% above global prices, notes See-eun Ha of The Blockchainers, a Korean YouTube channel. “It really spurred the government to take regulatory action. Also, the government was probably very concerned about the unregulated arbitrage market,” he says.  Elaine Ramirez 3. Major companies get into blockchain (May-October) Large companies embraced the blockchain storm, with Samsung SDS joining the Enterprise Ethereum Alliance in May and banks experimenting with Bitcoin remittances. Kakao Corp, maker of KakaoTalk messenger, acquired fintech startup Dunamu to launch its own crypto exchange Upbit. The biggest deal was gaming giant Nexon acquiring Korbit, the country’s first Bitcoin exchange, a milestone for a corporation taking the dive into cryptocurrencies despite regulatory uncertainties surrounding their exit success.  Korbit “The fact that Nexon was willing to take on this regulatory risk indicates how positively they view the future of cryptocurrency,” says Steve Kim, foreign legal advisor at Seum Law. “Unlike typical game companies that have an interest in crypto primarily as it relates to the purchase of game items, Nexon’s acquisition indicates its interest in the industry as a whole.”    4. Government declares war on ICOs (September)  As ICOs gained global momentum, the craze over the new financing method became impossible to ignore. While the South Korean government formed a task force in November 2016 to survey cryptocurrency trends, it was silent until September 2017 when it issued its first statement, noted Chan-sik Ahn and his tech team at HMP Law. In early September, the Financial Services Commission distinguished between securities-type tokens and utility-type tokens and emphasized that it would regulate securities-type tokens, a line consistent with the position of regulators including in the U.S. and Singapore, notes Kim. Many in the blockchain scene saw the regulatory statement as a relief, a sign that regulators were finally taking control. “Before the rush of middle school, high school and university students to invest in cryptocurrency, the market had a very large population of people over 50 years old who had money to spare. They were more susceptible to misinformation due to unfamiliarity with technology,” Ha says. But it hardly tamed activity. After the price of Bitcoin rose rapidly and China stifled its cryptocurrency market in September, an influx of money flooded the Korean market, Ahn noted. On Sept. 29, the task force stepped up its rhetoric to say it wanted to propose a legal amendment that would prohibit all ICOs, along with other heavy-handed regulations, thus bringing down the hammer on the new technology. But the local blockchain scene prepared to protest the ban, arguing the government - which does not recognize digital currencies as a financial product or legal tender - had no grounds to do so. As of present, no ban - nor any other crypto regulation - has been enacted. But the September announcement has certainly set the tone for the government’s direction, Kim notes. Regulators said they were cracking down on crypto crimes such as multilevel Ponzi marketing schemes, ICO fraud and Bitcoin-based marijuana sales. The FSC’s comments didn’t stop local startup Metaps Plus from launching PlusCoin in October as the first crypto issuance based in Korea rather than through an overseas foundation. “Unfortunately, no more ICOs dare to be scheduled in Korea due to the government’s September announcement,” Ahn says. 5. Government gears up for full-fledged regulation (December) The government’s September announcements gave the local market an uneasiness that has only been compounded. December has been peppered with bombshell regulation proposals as the government accelerated its process of building a regulatory framework. On Dec. 8, the Ministry of Justice took charge of the FSC’s task force - a signal in itself that regulators would take a stronger position to regulate and punish crypto-related activities in an effort to clamp down on alleged fraud or Ponzi schemes, Ahn said. Authorities are mulling corporate, value added and transaction taxes to gain income from the trade. Since then, FSC officials have said they would consider soon taking regulatory actions on both ICOs and the cryptocurrency exchanges, he added. “It seems reasonable to take some time for the authorities to catch up with new technology, but the cryptocurrency trades boom has become so feverish in such a short time that the South Korean government has had to spend more time and expense to take control of it,” Ahn said. Amid the chaos, the Korea Blockchain Association pledged its own self-regulations to tackle money laundering and other fraud. The government also proposed measures that would require crypto exchanges to meet disclosure and reserve requirements. Concern has risen over asset protection after Bithumb, the largest local exchange, suffered hacks allegedly at the hands of North Korea, and smaller exchange Youbit filed for bankruptcy this week after a second hack. While this was first reported as a ban on exchanges, the objective is to require the exchanges to afford to pay back their users as necessary, Kim noted. To restrict crypto-related inbound foreign investment, the government has asked banks not to process such remittances, Kim says. It is using a provision in foreign investment laws that allows rejection of foreign investment if it negatively impacts national security and public order. Banks are no longer accepting outbound crypto-related remittances either, he added. “Apparently the government has told the banks to reject foreign investment related to cryptocurrency based on this law---this is, of course, not an official nor public position held by the government,” Kim says. What This Means For 2018     With such volatility both in the market environment and in regulations, it is difficult to predict what 2018 holds for South Korea’s crypto scene. The government has expressed a negative view on cryptocurrency, ICOs, exchanges and other trading, but even its announcements so far have been vague, Ahn notes. He expects the government to legalize ICOs and crypto exchanges with strict requirements to prevent fraud, speculation or hacking, which should stabilize the cryptocurrency market. “It says it could prohibit all ICOs and cryptocurrency exchanges to prevent fraud or speculation, but many experts point out that the government will not prohibit cryptocurrency entirely because the institutionalization of issuance or exchange of cryptocurrency is a worldwide trend, and such a drastic policy could hurt the freedom of the market,” he says.  

[seminar] Cryptocurrencies & tokens - what does the law say about them?

 Date: Friday 15 December, 2017Time: 1pm to 6pm (followed by a networking reception)Venue: Grand Convention Center, Dangsan-dong, SeoulCost: free of charge to registered attendantsBlockchain-based cryptocurrencies/ digital currencies and (utility) tokens are providing new ways of carrying out international commerce and trade. Everyone from Bill Gates to Rand Paul and Al Gore agrees that blockchain, cryptocurrencies and tokens have the potential to be massive game changers in the global economy.As often happens, legal and regulatory systems lag behind new technology, and struggle to catch up to new developments. Some governments see cryptocurrencies and tokens as an opportunity for innovation, others see them as a threat, while still others remain skeptical.This seminar will explore and compare regulatory environments in several different legal jurisdictions: Korea, USA, China & Hong Kong, Japan, Switzerland, and Estonia. All of them have been active sites of the sale and purchase of coins and tokens, exchanges and initial offerings. With the support of TokenPost, Korea’s largest blockchain media outlet, HMP Law has invited expert lawyers from each country to outline their current legal frameworks and future outlooks. After the individual presentations, a panel of people active in the Korean cryptocurrency and token space will discuss experiences and perspectives about dealing with those different legal systems and guidelines.Join us at the Grand Convention Center on the afternoon of December 15th for an interesting and useful afternoon of knowledge exchange and networking. After the seminar itself, there will be a standing networking reception with finger food and wine. Registration for the event is free. Speakers:Korea - Chan-sik Ahn, Partner, HMP Law           USA - Lee A. Schneider, Partner, McDermott Will & Emery   Japan - Masakazu Masujima, Partner, Mori Hamada & MatsumotoSwitzerland - Benjamin Dürig, Counsel, Froriep LegalEstonia - Lada Riisna, LEADELL Pilv           China & Hong Kong – Partner, Sumit Indwar, Linklaters Hong Kong The venue is the Grand Convention Center. Click here to see a map: http://dmaps.kr/72s35How to get to the venue: Just one minute’s walk from exit 13 of Dangsan Station (lines 2 and 9). Parking is also available at no cost. Address: 58 Yangpyeong-ro Yeongdeungpo-gu, Seoul (서울특별시 영등포구 양평로 58) To register, visit http://onoffmix.com/event/120501 or email jacco@hmplaw.com   

[Korean Economic Daily] HMP Law’s ‘IT Power’ Led by Young Blood… First Advisory on the Issuance of a Cryptocurrency under Ko

Translated and adapted slightly from the Korean original: http://news.naver.com/main/read.nhn?mode=LPOD&mid=sec&oid=015&aid=0003840524    Thanks to its strengths in IT, HMP Law is considered one of the busiest leading law firms in Korea’s rapidly developing ICT sector. With new technologies constantly emerging, new regulations and laws are coming into force, and an increasing number of companies are collaborating with law firms to expand their business into the areas of FinTec (financial technology), Blockchain, cryptocurrencies, drones, self-driving cars, sharing economy, Internet of Things (IoT), artificial intelligence (AI), and others.   HMP’s “IP power” comes from the expertise of 8 young lawyers in its Tech & Comms Team: Ahn Chan-sik (lawyer in charge, graduate of the 31st class of the Judicial Research and Training Institute), Park Eun-ji (41st class), Shon Ga-ram (45th class), and Eom Yoon-ryung, Park Ju-hong, and Nam Won-chul (who each passed the 5th Korean Bar Exam). Led by Ahn Chan-sik, they review the progress of cases at monthly meetings and check issues of law in various areas, to strengthen their expertise.   Specifically, HMP has a lot of experience in legal consultation matters related to the Blockchain, which are gaining attention as the next big thing in technology. In 2009, an anonymous figure named Satoshi Nakamoto created the Blockchain to mint a new digital cryptocurrency, Bitcoin. A “block” means the contents encrypting certificates on the value of currency and transaction records, based on a hexadecimal number. Blocks are formed successively every 10 minutes, thereby creating a chain. HMP Law says, “We are receiving an increasing number of requests for advice about the Blockchain. Equipped with the Blockchain-based business model, foreign companies desire to establish branches in Korea. HMP’s advisory service concerns legal regulations on cryptocurrencies, initial coin offerings (ICO) and the establishment, operation and transaction of cryptocurrency exchanges.”   HMP recently provided legal consultation with regard to the ICO of PlusCoin by Metaps Plus, a company engaged in the development of mobile marketing platforms. This ICO is the first issuance of a cryptocurrency under Korean law. Other Korean companies have launched ICOs in Switzerland, Estonia and other cryptocurrency-friendly countries.   The Tech & Comms Team is also giving comprehensive legal consultation with regard to the establishment and operation of CoinRoom, a cryptocurrency exchange market to be launched by Metaps Plus, and will provide necessary services for the replacement of various forms of contracts with ‘smart contracts’ based on Blockchain technology.         Later this year, HMP will hold a seminar entitled “A comparative legal review on the regulations of cryptocurrencies.” During this seminar, HMP will present and compare the current cryotocurrency regulations of several countries, including Korea, Switzerland, Estonia, China, Japan, Hong Kong, and Singapore, with input by lawyers in those countries who are specialized in cryptocurrencies. HMP Law has previously held seminars jointly with Bird & Bird, a global law firm, on IoT, AI, 3D printing, FinTec and other similar subjects.       HMP Law is actively expanding its advisory services to other new industries. As a member firm of the Korea Drone Association, HMP Law provides legal consultation monthly at the general assembly, specifically recently advising on the establishment and operation of the International Drone Sports Organization. HMP Law says, “Our plan is to give a wider scope of legal consultation with regard to the establishment of the International Drone Sports Organization, the preparation of a memorandum of understanding for partner companies desiring to join such organization, and the operation of future sports events and related rule-making.”   The Tech & Comms Team recently launched its own Korean-language blog to present legal opinions on innovative technology matters and information on relevant laws. 

[Photos] BCCK Breakfast Workshop on the Anti-Corruption Law One Year On: Where Are We Now?

 One year ago CS Ahn gave a workshop to members of the British Chamber of Commerce in Korea, explaining the new anti-corruption law (the so-called Kim Young Ran Law). It was so well received that the BCCK invited him back again this year to give an update one year on. In his presentation, attended by about 20 BCCK members from various industries, Mr Ahn outlined some recent court cases involving that law, and their outcomes. It was a very interactive presentation with many questions from the audience, and much discussion about some areas of the law that were hard to understand. Once again, the audience responded well to the presentation and appreciated Mr Ahn’s briefing and advice.  Photos of the event can be seen here: http://bcck.or.kr/bcck-breakfast-workshop-anti-corruption-law/

Sept 27: [BCCK Breakfast Workshop] The Anti-Corruption Law One Year On, with Chansik Ahn

On September 27, the BCCK will host a Breakfast Workshop focused on the updates of the Kim Youngran Law approximately one year since its implementation. In particular, the workshop will review court rulings and administrative interpretations related to the law and changes which may be expected to emerge under the new Moon government. The workshop will be led by ChanSik Ahn, a Partner at HMP Law. This event will explore: Analysis of court cases invoking the Kim Young Ran Law;Analysis of administrative interpretations of the Anti-Corruption & Civil Rights Commission;General trends related to Kim Young Ran Law’s implementation seen through court cases and administrative interpretations;Any possible amendments and changes to Kim Young Ran Law under new government;Some do’s and don’ts for foreign managers and their Korean colleagues.   

We welcome Dr. Josef Kim as special adviser on nuclear & energy matters

  HMP Law is pleased to introduce Mr. Josef Kim (Kim Du-il) as an adviser to our firm from August 1, 2017. Dr. Kim has impressive experience in the field of nuclear energy, and will assist our legal professionals in providing the best legal advice to companies in that industry, as well as in other related energy and technology industries. A summary of his education and career background follows:  Education 1991     Ph.D. (Dr.-Ing.) in Nuclear Safety Engineering from RWTH Aachen, Germany1987     M.Sc. (Dipl.-Ing), Energy Technology from RWTH Aachen, Germany1983      B.Sc., Ceramic Engineering from Yonsei UniversityCurrent positionsRepresentative Director and President, SMART Power Co. Ltd.Special adviser to HMP Law Main capabilities Provides technical advice; builds domestic and overseas networks; and establishes strategies for expanding business at home and abroad, in connection with i) nuclear energy (overseas expansion of nuclear plants and nuclear technology, closure of nuclear plants, and disposal of radioactive waste, such as processing of spent nuclear fuel and so on), ii) new and renewable energies (solar power, wind power and biomass), and iii) other energy sectorsProvides advice and consultation to KEPCO, KEPCO E&C, KHNP and other energy-related public corporations and institutionsProvides advice and consultation to foreign companies engaged in the energy industryProvides advice and consultation on the automotive industry, such as electric cars, self-driving cars and so on (specifically, advice for German and other European major enterprises)Provides advice and consultation in relation to TIC (Testing, Inspection and Certificates) and new technologiesArbitrates disputes arising from contracts made between foreign companies, parties to M&ASuggests how to terminate the contractual relationship in joint ventures between foreign and domestic companies 

[Lawyer in the News] Kwak Jeong-min "Pro Bono Activities: Duty and Responsibility of Lawyers to Giv

On July 19, Kwak Jeong-min (40, graduate of the 37th class of the Judicial Research and Training Institute), an attorney at HMP Law and deputy director of legislation at the Korean Bar Association, expressed her ambition to be a lawyer who provides a valuable service to the community. Despite her busy life as an attorney and member of the KBA, Ms. Kwak never skips her pro bono activities, which include legal consultation to a child protection organization sponsored by HMP Law, giving free legal aid (talent donation) to multicultural families in Ansan, Gyeonggi-do, personal assistance in litigation involving refugees, public defending in juvenile protection cases, and so on.   Ms. Kwak stressed the importance of these pro bono activities, saying, “Lawyers who have received numerous benefits should give back some benefit to the community. In this way, pro bono activities are both a duty and a responsibility of lawyers.” She continued, “Pro bono activities are an attraction and advantage that lawyers can enjoy… For me, such activities are the motivation to practice law for a long time.” In addition to the aforementioned voluntary service activities, Ms. Kwak also focuses on her duties as deputy director of legislation by presenting legal opinions on behalf of the Korean Bar Association about the establishment and/or amendment of various Acts, etc., and giving answers to questions on the acceptance of cases, disciplinary action against lawyers, and matters under the Attorney-at-Law Act.   Ms. Kwak said, “During my stint as a training manager at the lawyers training institute since 2015, I have carried out projects related to the mandatory training course supervised by the Korean Bar Association. At that time, the head of the lawyers training institute was Kim Hyeon, who later became the president of the Korean Bar association. After his inauguration, Kim recommended me for my current role.” “In the beginning, I was very surprised to find out that the Korean Bar Association has dealt with so many matters and then again surprised at the heavier than expected workload of the deputy director of legislation. Fortunately, thanks to assistance and encouragement from director of legislation Park Seong-ha and other team members, I have been able to and continue to perform my double duties as attorney and deputy director of legislation at the same time.”   As an attorney at HMP Law, Ms. Kwak mainly handles financial, corporate and criminal cases. Recently, her practice areas are being expanded to include legal consultation and litigation in connection with inheritances and donations, adult guardianship, cybercrime, personal data protection, and so on.   She explained, “HMP Law shows outstanding professionalism in the areas of international litigation and arbitration, and corporate and commercial cases. We have a number of multinational clients. Supported by HMP Law’s broad experience in such areas, I mainly work on financial and corporate matters.” Her commitment to academic achievement also came up in the interview: “I feel rewarded teaching students. If given the opportunity, I want to give lectures while working as an attorney. Another dream is to carry out research useful to the legal profession.” “I also dream of becoming a writer of legal fictions, like the American John Grisham and Japanese Igarashi Hudaba.” she said.