Deals & Cases

M&A 2021-11-12
  • Share

    1. URL

DR & AJU Wins Surplus Fund Case Claim of KRW 40 Billion on Behalf of Korea Line Corporation

DR & AJU LLC (Managing Partner Kyu Chul LEE) successfully represented Korea Line Corporation, an affiliate of SM Group’s Shipping Division, in a surplus funds claim case against a British bank.

With the revision of the British tax system in 2015, the British tax government levied taxes on tax lease savings. After pre-paying the taxes, the British bank filed a lawsuit against Korea Line Corporation in 2019 to pay surcharges of KRW 40 billion (approx. USD 31 million).

The Court dismissed the case, saying that the British bank's claim for immunity is a bond under an unfulfilled bilateral contract and should be regarded as a simple rehabilitation claim rather than a public interest bond. After winning the case, DR & AJU’s attorney said, "An unfulfilled bilateral contract must only be recognized when there is an original price-related relationship. This decision is in accordance with preceding Supreme Court decisions that reinforce this interpretation."