[The Dong-A Ilbo 2021.12.27]

“Daesan Green Energy, the largest power plant using byproduct hydrogen in the world; the floating photovoltaic power plant in Hapcheon Dam, the largest one in Korea; the floating offshore wind farm in Ulsan, the first in Korea”

Major eco-friendly, new and renewable energy projects recently attracting attention in the energy industry in Korea have something in common.  It is that the Projects/ Energy Group of Shin & Kim has provided legal services for such projects with respect to feasibility review, government approvals and permits, dispute and litigation handling, and project financing (PF) advice. Shin & Kim is the only Korean law firm with a specialized practice group in the area of projects and energy.

Mr. Sang-Hyun Lee (29th graduating class of the Judicial Research and Training Institute), who heads the group, said, “The group provides comprehensive legal services, including large-scale PF and operation, in the infrastructure area involving roads, railroad, airports and tunnels, and in the energy area involving minerals, gas, new and renewable energy, and plants. He added, “The biggest strength of Shin & Kim is its ability to provide a ‘one-stop service’, ranging from the initial project stages to completion.” 

One-stop service from approvals and permits to Project Finance

The Projects / Energy Group of Shin & Kim was formed in April of 2021. Since 2006, Shin & Kim has been unrivalled in the legal service market for energy, with its Energy Industry Team and Project Finance Team, which had existed prior to the emergence of new and renewable/ eco-friendly energy issues. The Projects / Energy Group is a merger of the teams into a single practice group. Chambers, the global legal market evaluation magazine, has ranked Shin & Kim in ‘Band 1’, the top tier, since 2016 when it first created the Projects/ Energy category. 

Behind such competitiveness lies a strong pool of professionals. The Projects / Energy Group, with about 30 professionals, has seven partners, in addition to two senior foreign attorneys, including Michael Chang, who is the head of the Project Finance Team, and attorneys who are experts in finance, environment, and other industries.

The Southwest Sea Offshore Wind Farm Demonstration Complex (60MW), located in Buan-gun, Jeonbuk, which was completed in January of last year, is the largest of all offshore wind farms currently operating in Korea, and Shin & Kim has been advising on the project from its inception. There were difficulties in the course of the project implementation, including fishermen voicing concerns over “destruction of fishing grounds”, and the military authorities citing diffused radar reflection. Shin & Kim smoothly coordinated and negotiated with resident people with respect to the conflicts, and took steps for various licenses, approvals and permits, including evaluation of impact on military operations.

From the early stages of projects, Shin & Kim provides legal advice by considering the characteristics of projects which continue for years, such as bankability. According to Mr. Michael Chang, “From the stage of obtaining licenses, approvals and permits at an early stage of the project, the PF Finance Team cooperates and participates, so that the project is designed from the beginning to facilitate future financing from lenders, etc., not just aiming to obtaining licenses, approvals and permits.”

Giant in the area of eco-friendly, new and renewable energy 

As the importance of ESG (Environment, Social and Corporate Governance) is becoming greater and greater in corporate management, together with “2050 Carbon Neutrality,” which has recently emerged as a global issue, Shin & Kim has come to prominence due to its experience and specialization in projects and energy.

Shin & Kim as advised on the floating wind power generation project in Ulsan, which is under way by Green Investment Group (GIG), a global green energy development and investment company.  The 1.5GW wind farm under the project produces larger electric power than a typical nuclear power plant. More recently, Shin & Kim has acted for the Jeju Hanlim offshore wind farm project, for which the construction of an offshore wind farm with at least 100MW is being pushed for as a commercial offshore wind farm, rather than a government-run project, for the first time in Korea.

Mr. Su Yong Jung (31st graduating class of the Judicial Research and Training Institute), who is the head of the Energy Industry Team, explains, “A new and renewable energy project has not many reference projects from the past, and requires an in-depth review of specific contractual provisions and risk assessment. The strength of Shin & Kim in this area comes from its experience.”