Cha & Kwon Law Offices provided legal advisory services on the structuring and drafting of an agreement under which an overseas entity provides virtual assets to a Korean company for use over a fixed period, followed by the return of the same quantity of virtual assets. The engagement focused on preventing ambiguity regarding the legal characterization of the transaction.
 
The agreement was structured on the premise that virtual assets do not constitute legal tender, and was designed as a use-based arrangement rather than a monetary loan. In particular, the obligation to return “virtual assets of the same kind and quantity” was framed as a non-monetary obligation, while usage fees and asset return obligations were clearly separated to avoid characterization as a quasi-consumptive loan.
 
The review addressed not only contractual wording but also the consistency of the legal structure, including ownership and return mechanics, the calculation and payment of usage fees and the risk of interest characterization, the exclusion of simultaneous settlement of fees and principal, and whether the arrangement could be construed as investment, asset management, or custody. Cha & Kwon Law Offices emphasized that careful terminology selection and obligation structuring are critical in virtual asset transactions to ensure legal clarity and mitigate regulatory and dispute risks.