Doing Business in Korea - Lecture Notes

2013 Summer SNU ISI

Prof. Joung Hwang (HUFS Law School)

July 22, 2013

Basics of mergers & acquisitions and joint ventures (today, tentatively)
Basics of venture capital, private equity and hedge funds (Wednesday, tentatively)

Professor introduction & lecture outline

http://blog.naver.com/introuslaw

Interactive, not information download

Socratic Method: American law schools primary teaching method

An example from Prof. Michael Sandels Justice class (not a law class, but an ethics class):
http://www.youtube.com/watch?v=kBdfcR-8hEY

Korean M&As expected to pick up

http://blogs.wsj.com/deals/2013/02/06/korea-is-primed-for-ma-deals/
(A recent example: http://techcrunch.com/2013/07/03/streaming-entertainment-startup-
boxee-acquired-by-samsung-for-around-30m/)

- Las Vegas City Centre Project (JV and M&A at the same time)
(a note on why we are looking at an American precedent - availability of materials)

News report related to the deal at the time of signing

http://www.washingtonpost.com/wp-dyn/content/article/2007/08/22/AR2007082202631.html

Time Lapse Video

http://www.youtube.com/watch?v=fWl8sfFMM34

Primary documents signed

http://www.sec.gov/Archives/edgar/data/789570/000095015307001868/0000950153-07-
001868-index.htm

What is happening?
Why are the contracts so long?
What does each section mean?

Concepts (rules)
- Limited liability (see also http://en.wikipedia.org/wiki/Limited_liability)
- Representations and warranties (see also
http://apps.americanbar.org/buslaw/blt/2006-01-02/nonbindingopinion.html)

Why is it important to do things right?

Due diligence disasters
http://www.ritholtz.com/blog/2013/03/due-diligence-disasters/

HPs Autonomy acquisition

CNN: The HP-Autonomy merger: What went wrong?
http://www.youtube.com/watch?v=Dz7rOiMnjM4
July 24, 2013
Basics of venture capital, private equity and hedge funds

Review of the materials covered on Monday

Understanding business news

HPs Autonomy acquisition
CNN: The HP-Autonomy merger: What went wrong?
http://www.youtube.com/watch?v=Dz7rOiMnjM4

City Center project related lawsuit filed and resolution

http://dealbook.nytimes.com/2009/03/24/dubai-world-sues-mgm-mirage-over-city-center-
project/
http://dealbook.nytimes.com/2009/04/29/mgm-mirage-and-dubai-world-reach-citycenter-
deal/

Additional References:

M&A - Quick Reference Guide - by law firm, McKenna Long & Aldridge LLP
http://www.mckennalong.com/media/site_files/1634_MLA%20M_A%20Quick%20Reference
%20Guide.pdf

JV Checklist ABA publication excerpt

http://blog.naver.com/introuslaw/50153261184

Venture capital, private equity, hedge funds

Venture Capital
http://en.wikipedia.org/wiki/Venture_capital
https://www.youtube.com/watch?v=NIsYT1rqW5w

Private Equity Funds

http://en.wikipedia.org/wiki/Private_equity
https://www.youtube.com/watch?v=khrIl2rB2dc

Hedge Funds
http://en.wikipedia.org/wiki/Hedge_fund
https://www.youtube.com/watch?v=N8PDwdlNkEQ

Public Offering (regulations) vs. Private Offering

Leverage (as in LBO or leveraged buyout) with debt, magnifies gains & losses
Activist hedge funds

Korea Carl Icahn and KT&G

http://news.bbc.co.uk/2/hi/business/6208754.stm

U.S. - David Einhorn and Apple

http://www.youtube.com/watch?v=5gu15d0I1a0

Japan Daniel Loeb and Sony

http://www.youtube.com/watch?v=mtwzGevk58A
Bruce Ackman vs. Carl Icahn showdown over Herbalife
http://www.youtube.com/watch?v=YDWMcM2b2o0

-Short Sale

Explanation of exam and tips on good writing

- One (1) essay in one (1) hour. (July 29)
- One-page essay, choose from 4 policy questions.
- Open book.
- Clear, concise and well-argued essays will be rewarded.

http://blog.naver.com/introuslaw/50141524080
http://abovethelaw.com/2012/11/benchslap-of-the-day-a-public-shaming-is-great-motivation-
to-brush-up-your-legal-writing/