Cha & Kwon Law Offices was retained to review the appropriateness of corporate fund expenditures and the potential post-tenure liability of a former director who served at an overseas subsidiary wholly owned by a Korean parent company.

In this matter, the former director asserted that the questioned expenditures were incurred in the course of the subsidiary’s business operations and that the employment relationship was limited to the overseas entity, thereby disputing the Korean parent company’s requests for explanations and its jurisdiction-related position.

The review focused on the director’s duties and responsibilities in connection with corporate fund management, the parent-subsidiary funding and control structure, and the substantive attribution of any alleged losses. In particular, the analysis examined whether explanations and supporting documentation may be reasonably requested for fact-finding and loss prevention purposes even before formally initiating a damages claim, and assessed the likelihood of Korean jurisdiction being recognized depending on the relevant circumstances. 

Cha & Kwon Law Offices provided practical guidance on step-by-step response strategies and key compliance considerations for potential dispute preparedness.