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

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

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"In this year's mergers and acquisitions (M&A) market, we expect to see an increase in full sales transactions through private equity (PE) funds rather than minority stake investments. Ultimately, M&A is about reaching an agreement on corporate value, and the key variables are interest rates and regulations. With the current uncertainty in interest rate trends and the impact of dual listing regulations, it is highly likely that pre-initial public offering (IPO) deals will decrease."

Kim Sanggon (57, Judicial Research and Training Institute class 23), Managing Partner at Kwangjang, a leading M&A figure in the legal industry, shared this outlook in an interview with The Asia Business Daily on April 29. He noted, "Recently, many M&A deals involved venture capital making pre-IPO investments and exiting through listings, but due to dual listing regulations, such deals are contracting. Instead, large-scale PE-driven sales are expected to increase."

Managing Partner Kim has advised on major deals that have shaken the market, including the Samsung·Hanwha big deal, the KT&G-Carl Icahn dispute, and the holding company conversions of LG, SK, and CJ groups. In particular, he played a key role in the post-1997 Asian financial crisis restructuring of major domestic companies through splits and mergers, as well as other large-scale M&As. Having joined Kwangjang in 1994 as an open recruitment hire, Kim has served as an operations committee member since 2018, as managing partner since 2021, and was appointed as chief managing partner in 2022. In the M&A market, where manpower is crucial, his track record is credited with establishing Kwangjang as a renowned M&A powerhouse.

◆M&A Powerhouse "Targeting KRW 500 billion in Revenue This Year"= Kwangjang leverages its 120-strong M&A group to demonstrate strengths in cross-border deals and PE transactions. The cross-border team led by Attorney Kang Kiuk and the PE team headed by Attorney Koo Daehun (class 35) are central. Attorneys Kim Kyungcheon (class 35), Kim Sungmin (class 36), and Kim Taejung (class 37) have broadened the portfolio from large corporate M&As to tech and startup transactions. Last year, Attorney Koo successfully closed deals such as the acquisition of DIG Airgas by French company Air Liquide (KRW 4.06 trillion), LG Chem's sale of its Walker Solutions business, and Hanwha Hotels & Resorts' acquisition of Ourhome.

Managing Partner Kim emphasized that Kwangjang's competitiveness in the M&A field is unrivaled. He stated, "In the areas of corporate governance and M&A, Kwangjang and Kim & Chang essentially form a two-top system," adding, "M&A is a field where accumulating experience through apprenticeship is key." He further explained that Kwangjang organically integrates various specialized fields such as labor, fair trade, and IPOs under a 'one-team' system to provide comprehensive advisory services. Among recent transactions, he cited the SK Square-related deal as the most complex, involving the exchange of equity in a Swiss company and a US Nasdaq-listed entity-a complicated triangular deal entangling Swiss, US, and Korean listed companies. Managing Partner Kim said, "Although the deal involved multiple listed companies across several countries and numerous issues, we completed it successfully based on our accumulated experience."

He identified labor, fair trade, and financial regulation as growth engines for this year. "With the revision of the Commercial Act and the spread of shareholder activism, advisory work on management disputes will also increase significantly," he predicted. Managing Partner Kim added, "Kwangjang was the first among the big four law firms, excluding Kim & Chang, to surpass KRW 400 billion in revenue. This year, we aim to achieve around 15% growth and enter the KRW 500 billion range." He continued, "Corporate clients are demanding solutions not just for legal advice but for overall management risks. Transforming the law firm into a comprehensive consulting organization is a core task."

◆Breakthrough in Litigation with Kim Beom-su's Acquittal= Among Kwangjang's recent remarkable achievements, Kim pointed to the acquittal of former Kakao CEO Bae Jaehyun and former Chairman Kim Beom-su. Both had been detained and later released on bail pending trial, making their acquittal particularly challenging. Managing Partner Kim explained, "The issues were complex and the trial was lengthy, but it was the result of the litigation team's focused capabilities. While Kwangjang has long had a reputation as a firm focused on advisory services, recently we have strengthened our litigation capabilities, which is now reflected in our results."

Regarding changes in the era of artificial intelligence (AI), he cited 'confidentiality' as the top priority. He said, "Kwangjang is building a closed AI system called eLK using in-house GPUs. The core of legal services remains information security and trust." He added, "In the past, lawyers who knew a lot of precedents had a competitive edge, but now, in an era of searchable information, the ability to synthesize diverse information and offer practical solutions has become essential."

On internal management, Managing Partner Kim stressed the importance of a systematic management system. "We operate around a compensation system and case management framework, with new cases approved by specialized team leaders, and ongoing monitoring throughout execution," he said. "To maintain a one-team system, specialized team leaders monitor team composition for each case and assign mentors to new lawyers under the 'assigned partner' system, ensuring all new lawyers can grow evenly." He further explained that work is managed to prevent overload on specific individuals, and systematic development is supported by an annual growth roadmap. "Having spent 33 years at Kwangjang as a 'Kwangjang man,' my experience forms the foundation for long-term growth and organizational stability," he said.

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