With the largest Korea team on the ground in Hong Kong, Cleary Gottlieb Steen & Hamilton is a colossus in this market. Cementing its position as one of the two top outfits with clients and peers, the firm further bolstered its abilities this year by relocating partner Sang Jin Han from its New York office to Hong Kong. This significant arrival brings the firm's Korea-focused partner count to four, doubling the numbers of its closest rival, Simpson Thacher & Bartlett. The four expert partners, including the well-regarded Jinduk Han, Yong G Lee and Sung K Kang head a team of 16. "Cleary Gottlieb is one of the undoubted leaders for Korean transactions," comments one banker client. "Their expertise is unrivalled as they've done an immense amount of transactions and know the market inside-out."
The firm had a banner year acting on over 12 Korean capital markets transactions. Its prominent status is showcased in its relationships with leading global underwriters and top domestic corporates and financial institutions such as Posco, SK Telecom, Kookmin Bank and the Korea Development Bank. Recently, in April 2009, the team churned out four offerings: a $3 billion notes offering by the Republic of Korea, Hana Bank's $1 billion offering of government guaranteed notes, the Industrial Bank of Korea's $1 billion notes offering, and SK Telecom's $332.5 million convertible debt offering. "No other firm can handle the volume of deals," confirms one client. "They have a sizeable team, so if I have something for them, they usually can take it on without much issue. Sometimes when we try to go with other firms there are timing conflicts or we have to get in a queue."
A highlight on the M&A front saw Sang Jin Han co-leading the team for LS Cable in its $1.2 billion acquisition of Superior Essex, the largest cross-border tender offer by a Korean company to date. As many Korean institutions began adopting holding company structures, a recent trend in the market, Lee and his team featured for long-time client Kookmin Bank on the US aspects of its conversion to the holding company structure.
Like almost all its competition in this arena, Jin-Hyuk Park and Youngjin Sohn run the well-oiled Simpson Thacher & Bartlett Korea practice out of Hong Kong. The ten man team is highly regarded by the top companies and financial institutions in Korea and can be found acting on almost every prominent and sophisticated deal in the market involving foreign elements.
The firm boasts a number of firsts in the market including completing the first SEC-registered deal in Korea for issuer Korea Electric Power Corporation (Kepco) and representing Shinhan Financial Group as being the first domestic financial holding company to register with the SEC and list on the New York Stock Exchange. These illustrious examples reflect the firm's standing and calibre in the Korean market.
"The Simpson Thacher team has an in depth understanding of the financial industry, and also of the Korean financial market and Korean business practices, not just from a legal perspective but from all angles," says a financial client. "Partner Jin-Hyuk Park is highly recommended, with knowledge and skills second to none. He's also a very approachable attorney with the ability to focus on the big picture."
Another client reserves flattering words for associate Kristina Kang "With her expansive knowledge, responsiveness and excellent work product, she has consistently provided impressive and valuable services."
This year Simpson Thacher's capital markets highlights include advising the initial purchasers of the $700 million Posco note offering, representing the joint bookrunners in the Republic of Korea's $3 billion SEC-registered notes offering and acting for the joint lead mangers in relation to a ¥52.8 billion ($613 million) note offering by Zeus, a special purpose vehicle formed by Posco.
Park featured for the initial dealers in the establishment of the $3.5 billion global MTN programme for Korea Expressway, and for the arrangers in Kepco's $1 billion global MTN programme. On the M&A front, Park and Sohn headed a team that advised Dongwon Enterprise and Dongwon Industries in their $363 million acquisition of Starkist Seafood Business from Del Monte Corporation.
"Simpson Thacher & Bartlett definitely lives up to its reputation as a leader in the Korean market," remarks an in-house client.
Clients have good things to say about Davis Polk & Wardwell's Korea practice, led by Tokyo-based partner Eugene C Gregor and senior associate Hyun Kim. "We've always been very happy with the quality and customer service from Davis Polk & Wardwell in our Korea transactions," says one banker client. "Eugene Gregor is a very well-regarded and competent partner and Hyun is an excellent senior associate. That's a view that's consistent across the market."
Though the firm retains a slightly lower profile than leading US rivals Simpson Thacher & Bartlett and Cleary Gottlieb Steen & Hamilton, it is increasingly winning over the market by scoring big-ticket mandates and, most importantly, impressing clients. The practice prides itself in targeting only the most innovative and complex transactions. "Historically it's been Cleary and Simpson that have serviced the Korean market, but Davis Polk provides a high quality and viable alternative for work done in Korea," notes a client.
The team shone this year in a number of high-profile capital markets offerings for Korean issuers. Examples include its role advising the joint bookrunners and lead managers of SK Telecom's $332.5 million convertible note offering, acting for the joint lead managers and underwriters in Shinhan Financial Group's $938 million rights offering, and representing the underwriters in relation to Korea Development Bank's $2 billion Schedule B notes offering.
Linklaters is the market's most eminent UK player and its Korea practice features two well-respected practitioners, Sanghoon Lee and Hyung Ahn. As the team builds up its roster of clients, it already is a favourite of financial players and corporates like DBS, Citi, Standard Chartered, LG Home & Household, Korea National Oil Company, Morgan Stanley and Korea Development Bank.
Acting on challenging deals across the spectrum of financial and corporate categories, a unique offering of Linklaters is combining its top-tier regional structured finance and securitisation strength with its Korean expertise to form an unbeatable combination. For example, the team played crucial roles in the €200 million Hyundai Card credit card receivables securitisation and in the $228 million cross-border RMBS issuance of notes by Korea Ace Mortgage Company. Another highlight for the team had Lee heading a team advising Morgan Stanley Private Equity Asia in the $835 million acquisition of Norske Skog Korea, one of the few true leveraged buyouts to occur in Asia in 2008.
Sidley Austin boasts a dedicated team of Korea-focused practitioners, three of whom are based in Hong Kong. Dohyong Kim marshals this offering and he retains a strong relationship with key client Posco among other enviable corporates like Samsung. San Francisco-based Peter H Kang is another leading individual who has handled a raft of important deals for Korean clients such as LG Electronics. Recently, Kim acted for Shinhan Financial Group and Shinhan Bank in relation to its successful application to obtain US financial holding company status, the first of its kind among Korean banks. For Posco, he headed a team on its proposed tender offer of all the shares of a Southeast Asian steel manufacturer.
Fast becoming a rising star in the competitive Korean arena, Orrick Herrington & Sutcliffe has made an impression this year winning some of the market's most coveted deals. For example, Korea practice head Mark J Lee acted for target GMarket in its high-profile $1.2 billion acquisition by EBay. Another banner deal had the team advising MBK Partners in a leveraged buyout of Taiwan based Gala Television Corporation.
Securitisation luminary Michelle Taylor's name remains a ubiquitous presence on cross-border securitisation transactions coming out of the country. Last year she led teams for the arrangers in the Lotte Card, Kookmin Bank and Shinhan Card securitisation transactions. David Cho was recently promoted to the partnership and significantly boosts Orrick's Korea offering.
After Paul Hastings Janofsky & Walker picked up partner Joseph Kim and his team of associates from Latham & Watkins Tokyo in 2007, the firm's Korea practice experienced a surge of activity. Based in Hong Kong, the group's head Jong Han Kim heads a team of 20 dedicated professionals across its global offices.
Hong Kong partner Daniel S Kim is a favoured practitioner in the market who, together with JH Kim, has helped raise the firm's reputation as a solid choice for Korea-based work. Samsung, Hyundai, Lotte Group, E-Land Group, Goldman Sachs, JP Morgan, Merrill Lynch and Morgan Stanley are a few clients that trust the team to deliver on quality transactions.
Illustrations of the team's work include advising JPMorgan as arranger of financing to support KKR's bid for Korea's Oriental Brewery, acting for Morgan Stanley Private Equity in its proposed acquisition of Daewoo Electronics, and representing the lenders in relation to the proposed financing of Kepco's coal-fired base load power plant to be built in the Philippines.
International capital markets Hong Kong partner Walter Son leads Allen & Overy's Korea group which includes consultant John Lee. The firm's offering continues to make inroads as a reputable alternative to its more established counterparts by gathering more prominent transactional experience and winning roles on juicy deals.
One example of a leading deal it worked on was advising Hana Bank on its inaugural $1 billion fixed rate global bond offering guaranteed by the Republic of Korea. This was the first bond offering utilising a government guarantee under a sovereign debt guarantee program out of Asia. Another potential headline-grabbing deal in the works has Son and a capital markets team acting for several investment banks on what could be the first covered bond transaction out of Korea.
Shearman & Sterling is making major investments into its Korea practice. This year, four new associates were welcomed to the team led by well-regarded debt specialist Won Lee. Lee is based out of Hong Kong along with Korean-speaking associate Steve Kim.
Although still a relatively fledgling group, Shearman & Sterling has been increasingly active on transactions with Korean elements. A highlight for Lee this year was in leading a team for an Abu Dhabi-based fund investor on its acquisition of an equity interest in a Korean heavy industry company.
Sponsor Kepco has high regard for the firm's leading project finance practice and has enlisted a team to advise it and Salcon Power Corp in relation to the project financing of a coal-fired power project in Cebu, Philippines. Of note is the firm's ubiquity on a number of major Korea-related arbitration cases.
Baker & McKenzie has a sizeable Korea practice, led by co-head Won Lee in Hong Kong. Six associates are based in the Asia-Pacific region with the remaining ten in the US. Particularly for Lee's team in Hong Kong, it focuses in representing Korean corporates in their M&As and project financings across a range of sectors including power, energy, steel and telecommunications.
One key deal for Lee and his team was acting for SK Group in its acquisition of CapitaLand Towers for $352 million. Another had the firm representing Samsung SDI on its $200 million joint venture with Bosche to develop battery systems for hybrid automotive vehicles.
DLA Piper has made an impressive leap into the big league, bolstering its Korea practice significantly this year with the poaching of Korean M&A specialist Daniel Lee from top domestic firm Kim & Chang. Lee is based in Tokyo and joins two well-regarded Korean partners Jae Chul Lee and Peter Kwon based in Hong Kong.
In addition to Lee, the Hong Kong group added four new Korean lawyers including respected senior associate Ben Hur from Sidley Austin. Key clients include Samsung Securities, SK Shipping, Amorepacific Corporation, Kookmin Bank and CJ Corporation.
Kwon and his team are advising Humphreys Family Communities, a venture between Pinnacle AMS Development Company and Samsung C&T Corporation in the development of a privatised US military family housing project in Pyeongtaek. This deal is valued at an aggregate of $1.37 billion over two phases.
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