IMM Private Equity, Mirae Asset Private Equity and Hana Financial Investment Private Equity (the “Investors”) made an investment in DICC, a Chinese subsidiary of Doosan Infracore, by purchasing 20% of the shares of DICC at the price of KRW 380 billion. In connection with such transaction, the Investors entered into a shareholders agreement with Doosan Infracore that set forth various matters, including certain investment exit mechanisms.
Subsequently, Doosan Infracore failed to cooperate with the Investor’s investment exit in breach of the shareholders agreement. As such, the Investors filed a lawsuit seeking payment of the share purchase and sale price, arguing that Doosan Infracore had the obligation to purchase the Investors’ shares of DICC at the price of about KRW 700 billion, the amount that the Investors expected to receive in connection with the failed investment exit. The Investors lost in the first instance trial but Shin & Kim convinced the appellate court to render a ruling which accepted all of the claims made by the Investors.
This lawsuit was the first lawsuit in Korea that addressed the meaning of minority shareholders’ right in connection with a drag along/tag along sale. In a situation where the entire amount of the investment made by the Investors (KRW 380 billion) could have been lost, Shin & Kim successfully represented the Investors, with sharp legal principles and application of logic. Ultimately, Shin & Kim, leading law firm in Korea successfully convinced the court to render a ruling which gave the Investors all of the investment amount and the profit that it expected at the time of the investment.