"Full Sales via PE to Increase"...M&A Star Kim Sanggon of Kwangjang on Market Shifts [Invest&Law]

The M&A Star of the Legal Industry
Advisor on Mega-Deals That Shook the Market
Samsung–Hanwha Big Deal, LG and SK Holding Company Conversions
"Experience Built Through Apprenticeship
Seamless Integration of Labor, Fair Trade, and More"

Sanggon Kim, Representative Attorney of the law firm Kwangjang, is being interviewed by The Asia Business Daily on the 21st at the conference room of Kwangjang Law Firm in Jung-gu, Seoul. Photo by Jin-Hyung Kang

"In this year's mergers and acquisitions (M&A) market, we expect to see an increase in full buyouts via private equity (PE) funds rather than minority stake investments. Ultimately, M&A is a matter of reaching consensus on corporate value, and the key variables are interest rates and regulatory factors. Currently, with interest rate trends uncertain and the impact of dual listing regulations, there is a strong possibility that pre-initial public offering (IPO) deals will decrease," he said.

Kim Sanggon (54, Judicial Research and Training Institute Class 23), Managing Partner at Law Firm Kwangjang and widely regarded as a leading figure in the M&A field, shared this outlook in an interview with The Asia Business Daily on April 29. He explained, "A significant number of recent M&A deals involved venture capital exiting through IPOs after pre-IPO investment, but these transactions are being dampened by dual listing regulations. Instead, there will be a rise in large-scale PE-driven sales."

Managing Partner Kim has advised on some of the most influential mega-deals in the market, including the Samsung-Hanwha big deal, the KT&G-Carl Icahn dispute, and the holding company transitions of the LG, SK, and CJ groups. Notably, he played a pivotal role in the post-1997 financial crisis restructuring of Korea's leading conglomerates, including corporate splits, mergers, and major M&A transactions. Joining Kwangjang in 1994 through open recruitment, he has served as executive committee member since 2018, as managing partner since 2021, and was appointed chief managing partner in 2022. In the M&A market, where manpower is critical, Kim's track record is credited with establishing Kwangjang's reputation as a powerhouse in the field.

◆Kwangjang, "A Premier M&A Firm Targeting KRW 500 Billion in Revenue This Year"= Kwangjang leverages its 120-member M&A group to demonstrate strength in cross-border deals and PE transactions. The cross-border team, led by Attorney Kang Kiuk, and the PE line, headed by Attorney Koo Daehun (Class 35), are central to this capability. Attorneys Kim Kyungcheon (Class 35), Kim Sungmin (Class 36), and Kim Taejeong (Class 37) have expanded the portfolio to include both large corporate M&A and tech/startup deals. Last year, Attorney Koo successfully completed the acquisition of DIG Airgas by French company Air Liquide (KRW 4.06 trillion), the sale of LG Chem's Walker Solutions business, and Hanwha Hotels & Resorts' acquisition of Ourhome.

Managing Partner Kim emphasized that Kwangjang's competitiveness in the M&A sector is unrivaled. "In the areas of corporate governance and M&A, it is essentially a two-way race with Kim & Chang," he said. "M&A is a field where building experience through apprenticeship is crucial." He added that Kwangjang provides integrated advice across various specialized fields such as labor, fair trade, and IPOs, all under a 'one team' system. Among recent deals, he cited the SK Square transaction as the most complex, involving the exchange of shares between a Swiss company and a US Nasdaq-listed entity, making it a complicated triangular deal entangling listed companies in Switzerland, the US, and Korea. "Although there were numerous issues and multiple listed companies involved across different jurisdictions, we drew upon our accumulated experience to achieve a successful outcome," Kim said.

This year, he identified labor, fair trade, and financial regulation as key growth drivers. "With amendments to the Commercial Act and the spread of shareholder activism, demand for advisory services on corporate control disputes will also increase sharply," he predicted. Managing Partner Kim stated, "Kwangjang was the first among the big four law firms, except for Kim & Chang, to surpass KRW 400 billion in revenue. This year, we aim to achieve around 15% growth and reach the KRW 500 billion mark." He further noted, "Corporate clients are increasingly seeking solutions that address overall management risks, not just legal advice," adding, "A key task is to transform the law firm into a comprehensive consulting-oriented organization."

◆Breakthrough in Litigation with Chairman Kim Beomsoo’s Acquittal= Among Kwangjang's most notable recent achievements, he cited the acquittal of former Kakao CEO Bae Jae-hyun and former Chairman Kim Beomsoo. Both individuals had been on trial under detention and later on bail, making the acquittal particularly challenging to secure. "Despite complex issues and lengthy trials, we achieved this result by concentrating the litigation team's capabilities," Kim said. "The firm has long been perceived as focused on advisory work, but recently, we have enhanced our litigation capacity, which is now leading to tangible results."

On changes in the era of artificial intelligence (AI), Kim identified "confidentiality" as the top priority. "Kwangjang is building a closed AI system called eLK using its own GPUs. The core of legal services remains information security and trust," he said. He added, "In the past, lawyers who knew many precedents had a competitive edge, but now, information is easily searchable. The crucial skill is synthesizing diverse information to offer practical solutions."

Regarding internal management, Kim highlighted the importance of systematic control systems. "We operate based on a compensation system and case management framework. New cases must be approved by a specialized team leader, and the execution process is continually monitored," he said. "To maintain a one team structure, specialized team leaders monitor team composition for each case and assign mentors to new attorneys through the 'assigned partner' system, ensuring balanced development." He also explained that workload is managed to avoid overburdening certain individuals, and a growth roadmap by year of experience ensures systematic talent development. "Having worked at Kwangjang for 33 years as a 'Kwangjang man,' I believe my experience provides a foundation for long-term growth and organizational stability," he concluded.

This content was produced with the assistance of AI translation services.