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Corporate Disputes

Corporate disputes fall into two broad categories: internal corporate disputes among shareholders, directors, and co-founders, and inter-company disputes with counterparties, competitors, and contract partners. Atlas Legal has represented clients across both areas — from shareholder meeting resolution nullification suits, director injunctions, and derivative actions, to contract breach damages claims and construction defect liability litigation. We take responsibility for the full process, from emergency response at the outset of a dispute through trial and enforcement.

In internal corporate disputes, we have secured injunctions in management control and trade secret cases to protect clients’ rights without delay. We have successfully obtained non-compete injunctions against employees who joined competitors after leaving, and — in a landmark trade secret case — led the first ever search and seizure of a major corporation by the Seoul Metropolitan Police Agency, demonstrating the power of a combined civil and criminal strategy.

In inter-company disputes, we have handled a broad range of commercial disputes including supply, service, and construction contract breaches, damages claims, warranty liability, and unjust enrichment. Drawing on the Managing Partner’s background as a former prosecutor, we pursue civil and criminal proceedings simultaneously where breach of trust or embezzlement under the Korean Criminal Act is involved. We handle a concentrated caseload at the Incheon District Court and Suwon District Court and are well-versed in local court practice.

Services

Internal Corporate Disputes

Shareholder Disputes

Shareholder agreement breaches, share transfer disputes, dividend claims, new share issuance nullification suits, shareholder meeting resolution nullification and cancellation suits, injunction for shareholder status confirmation

Management Control Disputes

Director injunctions, director removal suits, hostile M&A defense strategy, request to convene an extraordinary shareholders’ meeting (Korean Commercial Act §366), board resolution nullification

Director & Officer Liability

Breach of duty of care (Korean Commercial Act §382(2)) and duty of loyalty (Korean Commercial Act §382-3), derivative actions (Korean Commercial Act §403), director damages claims (Korean Commercial Act §399), parallel criminal complaint for breach of trust and embezzlement under the Korean Criminal Act

Trade Secrets & Non-compete

Non-compete injunctions against employees joining competitors, trade secret injunctions and damages, criminal complaint under the Unfair Competition Prevention Act, track record of Seoul Metropolitan Police Agency search and seizure

Partnership Dissolution

Management control and equity disputes between co-founders and business partners, partnership dissolution, equity settlement, company separation, negotiated resolution or litigation

M&A Disputes

SPA representations and warranties breaches, price adjustment disputes, post-closing disputes, stakeholder disputes following mergers and spin-offs

Inter-company Disputes

Contract Breach & Damages

Supply, service and construction contract breaches, damages claims, contract rescission and termination, penalty claims, asset preservation injunctions

Defect Liability & Construction

Warranty liability under construction and manufacturing contracts (defect warranty under Korean Civil Code §§580 et seq.), construction payment claims, damages for design errors, liquidated damages for completion delays

Unjust Enrichment & Tort

Unjust enrichment claims, tort damages, misappropriation of technology and ideas by third parties, false advertising and unfair competition

Loan & Payment Disputes

Inter-company loan repayment claims, unpaid goods and service fees, payment order applications, provisional attachment and enforcement proceedings

Franchise & Distribution Disputes

Franchise agreement termination and penalty disputes, violations of the Fair Transactions in Franchise Business Act and Fair Agency Transactions Act, damages for unfair contract terms

Guarantee & Security Disputes

Joint and several guaranty liability disputes, continuing guarantee termination, objection to security enforcement, mortgage and pledge disputes, surety bond claim defense

When You Need a Corporate Disputes Lawyer

  • Shareholders disagree on key decisions: Conflicts over dividends, new share issuances, or director appointments can escalate quickly — early legal intervention before a full dispute erupts is critical.
  • A director or CEO needs to be removed: Director removal is procedurally complex. Mistakes can give the other side grounds to bring a counterclaim.
  • A departing employee joins a competitor or leaks trade secrets: An immediate injunction application is needed to contain the damage. Delayed action makes evidence gathering far more difficult.
  • A director or officer has misappropriated company assets: A derivative action (Korean Commercial Act §403) combined with a criminal complaint creates maximum legal pressure.
  • A business partnership breaks down: Dissolution, equity settlement, and company separation require careful legal management to achieve the best outcome.
  • A counterparty refuses to pay for goods or services: Payment orders, provisional attachments, and damages claims must be deployed in the right sequence.
  • Defects appear in delivered goods or completed construction: Clearly establishing the scope of warranty liability and the party at fault through legal proceedings minimizes your exposure.
  • A franchise or distribution agreement is unilaterally terminated: The Fair Transactions in Franchise Business Act and Fair Agency Transactions Act provide specific rights to claim damages for wrongful termination.

Representative Matters

Shareholder Dispute

New share issuance nullification — represented minority shareholders against a controlling shareholder’s unlawful third-party allotment of new shares, obtaining a nullification judgment

Management Control

Director injunction and removal suit — challenged an unlawful board resolution, obtained a director suspension injunction and prevailed in the subsequent removal litigation

Trade Secrets

First ever corporate search and seizure by Seoul Metropolitan Police — a criminal complaint for trade secret infringement led to the first ever compulsory investigation of a major corporation by the Seoul Metropolitan Police

Non-compete

Non-compete injunction against key technical employee — obtained an injunction immediately suspending the work of a key engineer who joined a competitor after resignation

Partnership

Co-founder equity settlement dispute — resolved a management control and equity ownership dispute with a negotiated settlement and completed equity buyout favorable to the client

Contract Dispute

Supply contract breach damages — a counterparty’s unilateral contract termination was countered with a damages suit that recovered the client’s full losses

Construction

Construction defect liability — brought damages claim against a contractor for major post-completion defects; an expert assessment confirmed the defects and judgment was entered for the client

Loan Recovery

Inter-company loan recovery — secured a provisional attachment over the debtor’s assets, then recovered principal and full interest through the ensuing litigation