October 2024 ASIA EDITION MCI (P) 004/02/2024 ISSN 0219 – 6875 KDN PPS 1867/10/2015(025605) Asia 40 Under 40 2024 The brightest young minds of the region’s legal industry Leading litigators of North Asia Japan’s M&A continues apace Navigating the sanctions minefield
1 Asian Legal Business | October 2024 COVER STORY 14 Asia 40 Under 40 2024 Rankings by Asian Legal Business, text by Bingqing Wang Continuing its tradition, the list recognizes exceptional legal talent across Asia, selected from over 500 outstanding nominees. The lawyers featured on the list were meticulously chosen through a rigorous selection process, evaluating their work quality, client recommendations, and their potential for future growth. FEATURES 12 A digital balance Japan and South Korea are crafting intricate strategies to balance digital progress with regulatory oversight. 22 Tokyo takeovers Japan’s relaxed monetary policy and corporate restructuring efforts are driving an increase in M&A deals. 24 Top 15 North Asia Litigators 2024 The region’s leading litigators offer insights into the strategies and mindsets that have propelled them to the pinnacle of their profession. Contents October 2024 BRIEFS 3 Headlines 6 Forum 7 Deals 8 Explainer 9 Appointments 10 The Q&A 28 Safer haven As Singapore and Hong Kong compete to attract ultra-wealthy family offices, legal experts weigh in on their rivalry. 30 Clear signals Saudi Arabia’s new investment law is a legislative ace up the kingdom’s sleeve that signals a conducive, clear and equal-opportunity climate for global capital. But only time will tell whether this new law will truly be a game-changer, or just another mirage in the desert of economic reforms. 34 Beyond borders South China is leading China’s global expansion in manufacturing, technology, and new energy sectors, and the region’s law firms are innovating legal services and training cross-border talent to meet growing compliance demands. 38 Geopolitical gridlock In an era of escalating geopolitical tensions, Asian companies find themselves navigating an increasingly complex sanctions landscape and experiencing an urgent need for robust compliance programmes. 8
2 Asian Legal Business | October 2024 From the editor Head of Legal Media Business, Asia & Emerging Markets Amantha Chia amantha.chia@thomsonreuters.com Managing Editor Ranajit Dam ranajit.dam@thomsonreuters.com Asia Journalist Sarah Wong sarah.wong@thomsonreuters.com Asia Writer Nimitt Dixit nimitt.dixit@thomsonreuters.com Rankings & Special Projects Editor Wang Bingqing bingqing.wang@thomsonreuters.com Copy & Web Editor Rowena Muniz rowena.muniz@thomsonreuters.com Senior Designer John Agra john.agra@thomsonreuters.com Traffic/Circulation Manager Rozidah Jambari rozidah.jambari@thomsonreuters.com Sales Managers Hiroshi Kaneko Japan, Korea (81) 3 4520 1192 hiroshi.kaneko@thomsonreuters.com Jonathan Yap Indonesia, Singapore (65) 6973 8914 jonathan.yap@thomsonreuters.com Krupa Dalal India, Middle East, Singapore (91) 22 6189 7087 krupa.dalal@thomsonreuters.com Romulus Tham Southeast Asia (65) 6973 8248 romulus.tham@thomsonreuters.com Simon Wan Hong Kong (852) 3462 7730 simon.wan@thomsonsreuters.com Steffi Yang South and West China (86) 010 5669 2041 qifan.yang@thomsonreuters.com Steven Zhao China Key Accounts (86) 10 6627 1360 s.zhao@thomsonreuters.com Yvonne Cheung China Key Accounts, Hong Kong and Korea (852) 2847 2003 yvonne.cheung@thomsonreuters.com Senior Events Manager Julian Chiew julian.chiew@thomsonreuters.com Senior Events Manager, Awards Tracy Li tracy.li@thomsonreuters.com A decade of the 40 under 40 As we unveil the 10th edition of our Asia 40 Under 40 feature, I can’t help but reflect on how far we’ve come. When we first launched this initiative a decade ago, we received just a few dozen applications. Today, I’m thrilled to report that we sift through hundreds of submissions from talented young lawyers across Asia, each more impressive than the last. This growth is not just a testament to the increasing popularity of our feature, but also to the burgeoning pool of exceptional legal talent in the region. The calibre of applicants we see today is truly remarkable, making our selection process both challenging and inspiring. What’s even more gratifying is witnessing the trajectories of our past winners. Many lawyers selected in the early years have since ascended to prominent positions, becoming managing partners, practice heads, and other leaders in prestigious law firms. Others have transitioned to in-house roles, now serving as general counsel in key companies across various industries. Their success stories serve as a beacon of inspiration for this year’s cohort and underscore the predictive power of our selection process. As we celebrate this milestone edition, we’re filled with optimism for the current crop. We hope and expect to see them become industry leaders sooner rather than later, following in the footsteps of their predecessors. To all our past and present Asia 40 Under 40 honourees, we salute your achievements and look forward to chronicling your continued success. Here’s to another decade of recognising and nurturing Asia’s brightest legal minds! Ranajit Dam Managing Editor, Asian Legal Business, Thomson Reuters Asian Legal Business is available by subscription. Please visit www.legalbusinessonline.com for details. Asian Legal Business has an audited average circulation of 11,402 as of 30 September 2016.Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as Asian Legal Business can accept no responsibility for loss. MCI (P) 004/02/2024 ISSN 0219 – 6875 KDN PPS 1867/10/2015(025605) Thomson Reuters Alice @ Mediapolis, 29 Media Circle, #09-05, Singapore 138565 / T (65) 6775 5088 10/F, Cityplaza 3, Taikoo Shing, Hong Kong / T (852) 3762 3269 www.thomsonreuters.com
3 Asian Legal Business | October 2024 TheBriefs (Reuters) Two years into the artificial intelligence boom, more large U.S. law firms are bringing on AI leaders to help them navigate technological advances that some believe will transform the profession. Akin Gump Strauss Hauer & Feld and McDermott Will & Emery have separately announced hires of executives who will lead AI efforts within the firms. Law firms, not always known for quickly adopting new technologies, are gradually embracing AI in response to client expectations and a growing conviction that it will play a permanent role in their business and the practice of law, industry consultants and recruiters have said. Washington, D.C.-founded Akin hired Jeff Westcott for a newly created director of practice technology and AI innovation role. Based in London, Westcott will focus on how the firm can use AI and other emerging technologies to improve client service, the firm said. McDermott Will & Emery, a Chicago-founded firm, hired Christopher Cyrus as its first director of AI innovation. He is based in Austin, Texas, a firm spokesperson said. The moves come as more lawyers have begun using AI to speed up research, help draft More U.S. law firms turn to executives for AI leadership roles Your monthly need-to-know legal briefs or cut down on administrative work. Over the past 18 months, some law firms have publicly announced partnerships with AI technology companies to adopt new legal practice tools or have developed their own. Firms and legal groups are also navigating potential risks for lawyers using AI. Covington & Burling, Latham & Watkins, Reed Smith and DLA Piper are among large law firms that have hired for newly created strategic and technical AI and data science leadership roles since late 2022, when the rollout of OpenAI’s ChatGPT supercharged the AI industry. Akin’s Westcott, who will report to the firm’s chief information officer, was most recently global director of innovation and practice technology at rival firm Bryan Cave Leighton Paisner. Westcott said part of his focus at 900-lawyer Akin will be to determine how the firm should invest in technology, assessing when it should spend money on internal development or buy products or partner with vendors. There has been an “explosion” of available technology options over the past few years fuelled by generative AI, Westcott said. There is a need to evaluate which technology best serves specific practice groups, he said. Law firms in North America and the UK that have seen client attrition over the last 12 months, according to a survey of 835 lawyers in law firms by legal workflow software company BigHand. Additionally, 80 percent are seeing less work from clients who stick with them.
4 Asian Legal Business | October 2024 The Briefs (Reuters) Cross-border mergers and acquisitions involving companies in the AsiaPacific region have recovered this year and are booming in Japan as businesses seek new growth after adjusting to cope with higher interest rates. The total announced value of such deals rose 25 percent year-on-year to $286 billion as of Sept. 30, LSEG data showed, with around 80 percent of them transacted with an entity outside the region. “There has been a notable pick-up in cross-border transactions as political stability returned to some markets just as pent-up demand for investments and dealmaking and adjustments to higher interest rates began to drive M&A activity again,” said Andre Gan, an M&A partner at Wong & Partners, a member law firm of Baker McKenzie in Kuala Lumpur. Overall, Asia M&A totalled $622 billion in the first nine months of the year, down 0.2 percent from the same period in 2023, LSEG data showed. The cross-border recovery was partly boosted by a number of mega-deals, including Canadian firm Alimentation Couche-Tard ‘s $38.5 billion all-cash takeover bid for Japanese convenience store owner Seven & i Holdings, opens new tab, the largest announced M&A deal globally this year. Japan is going to drive the region’s multibillion-dollar deals, bankers said, as relaxed corporate governance rules have made its public companies more open to takeovers, while some of the local champions are seeking to expand overseas. Japan’s inbound M&A surged more than 16-fold so far this year to a record $74 billion, while outbound deals were up 49 percent to $50 billion, LSEG data showed. Texas-headquartered real estate investor Hines, which owned and operated $93 billion worth of assets as of June 30, is actively looking for opportunities globally including Asia, its Asia chief investment officer Ng Chiang Ling told Reuters this month. Having acquired some assets in Japan and Singapore this year, Hines also sees opportunities in Australia, Ng said. In Southeast Asia, cross-border transactions are picking up. German insurer Allianz, opens new tab announced in July that it was planning to buy a majority stake in Singapore’s Income Insurance for about $1.6 billion to strengthen its foothold in Asia. “Looking forward, 50% of the APAC pipeline is made up of global cross-border transactions,” said Rohit Satsangi, Deutsche Bank’s co-head of M&A, Asia Pacific. Satsangi said he expected a resurgence of outbound activity by state-owned companies in China that are searching for renewable and natural resources assets globally. A bounce in China would be welcomed by dealmakers. China outbound deals totalled $14 billion so far this year, down 8 percent year-on-year and were at the second-lowest level in the last decade, LSEG data showed. Wong & Partners’ Gan said the overall outlook for M&A in the region was expected to improve, including for deals that did not cross borders. “Heading into 2025 and 2026, considering the recent easing of interest rates by the U.S. Fed and conclusion of the U.S. elections in late 2024, we expect continuing stability to lead to a resurgence of M&A activity,” he said. Cross-border M&A recovers in Asia as dealmakers look abroad for growth In the news 1 Cleary Gottlieb Steen & Hamilton will create a new category of non-equity partners, becoming the latest major U.S. law firm to move away from the traditional single-tier structure. Rival leading firms, including Wilmer Cutler Pickering Hale and Dorr, have also recently added non-equity partner tiers. Paul, Weiss, Rifkind, Wharton & Garrison and Cravath, Swaine & Moore have reportedly created a salaried partner tier in recent years. 2 Hogan Lovells will wind down its offices in Warsaw, Johannesburg and Sydney, citing a desire to focus on “strategic markets.” The firm said it will close the three locations “in the coming months,” without identifying any reasons for the individual closures. Its website lists 33 lawyers in Warsaw, 19 in Sydney and nine in Johannesburg. A firm spokesperson said about 65 lawyers and 58 support staff will be affected by the closures. 3 Freshfields Bruckhaus Deringer has announced a rebranding initiative, changing its legal name to simply “Freshfields” and introducing a new black-and-white logo. The firm, which is the oldest among the Magic Circle with origins dating back to 1743, says the new brand aims to reflect its current identity and future ambitions.
5 Asian Legal Business | October 2024 Quote Unquote “Obviously not enough of us are saying no. Clients are part of the problem.” Alan Tse, chief legal officer at JLL, tells the Wall Street Journal that while the legal services market is being driven by the top end, buyers are also playing a part in legal fees becoming increasingly exorbitant. The Briefs UK firm DACB launches HK office amidst foreign firm retreat London-headquartered insurancefocused law firm DAC Beachcroft has expanded its presence in Asia with a new office in Hong Kong, which will operate in association with newly founded local firm CK Lee & Co. The Hong Kong office will be led by partner Ross Risby, who specialises in advising on professional liability and financial lines insurance risks, including directors and officers insurance disputes. Risby spent over 30 years practicing in the London insurance market before moving to Hong Kong. “Our decision to launch in Hong Kong is client-driven. We have been operating in Singapore for almost 15 years, but to really have a foothold in the Asian market, we recognise the need to expand our presence,” Risby told ALB. The office will also include partner Wai Yue Loh, who focuses on shipping, trade, commodities and insurance law, with extensive experience advising Chinese clients inside and outside China. Loh is the joint managing director of DACB’s Singapore association firm Incisive Law, Ince & Co’s erstwhile ally. Loh previously headed Ince’s Beijing office and China Practice Group in Singapore. DACB’s Hong Kong association firm, CK Lee & Co, will be managed by Kelvin Lee and supported by senior associate Will Chan. Lee, who was most recently with Ince & Co in Hong Kong, has a focus on coverage disputes, particularly related property/BI risks and product liability insurance, and has also advised reinsurers. “It has been a long-time ambition of ours to expand into Hong Kong,” said Gustavo Blanco, DACB’s head of international business, in a statement. “With a foothold in this important market, we are delivering on our ambition to be the international insurance law firm of choice for the global insurance industry.” Apart from its Singapore office, DACB also has associations with Malaysian law firm Gan Partnership and Shanghai law firm Kai Rong. DACB’s Hong Kong venture comes as international law firms are tamping down their presence in Greater China due to uncertain market outlook and heightening geopolitical tensions. Winston & Strawn closed its Hong Kong office earlier this year while Dechert is believed to be considering shuttering in the SAR as well. Meanwhile, another U.S. law firm, Mayer Brown, said that it plans to separate from its current Hong Kong operation. Risby said DACB’s Hong Kong launch is part of the firm’s aim to provide the global insurance industry with international expertise and presence, combined with local knowledge. “Our clients benefit from legal experts who understand local markets, and who have full access to the wider infrastructure and support of a major international law firm. That applies whatever market conditions may be since we always look to work in partnership with our clients to overcome the challenges they face,” he told ALB. Independent law firms in the UK that say they find it challenging keeping up to date with changes in the legal industry, the most cited challenge in a recent LexisNexis survey. It was followed closely by compliance regulations (69 percent). A third noted that they lacked the breadth of skills needed to meet all their client needs. 70%
6 Asian Legal Business | October 2024 The Briefs Lawyer launchpad In an effort to attract and retain top talent, firms are implementing innovative training initiatives to nurture the next generation of lawyers, and developing essential skills such as adaptability, commercial awareness, and technological proficiency. When we meet candidates, we want them to visualise training with us. And so we start from the earliest touch points. For example, when running an event for law students, we’ll offer an interview skills workshop. That way, they meet us but also expand their own personal toolkit. For any young lawyer, a personal toolkit is key to flourishing in today’s evolving legal services landscape. When trainees join us, we introduce our Associate Competencies with a hands-on exercise to bring them to life. Trainees learn that clients, communications, knowledge, people, performance and stewardship are not abstract concepts, but something to practise now. For example, for clients, a trainee can achieve this by building rapport. Whereas a Senior Associate is encouraged to develop longer-term relationships. So, the expectations grow as you grow. How to get there? We’ve embedded Development Centres. For example, juniors get to look at how to define themselves as a lawyer, network and connect with a mentor. At mid-level, how to build ongoing client relationships and negotiate. For Senior Associates, business development tools and business plans. Today’s legal market is competitive. To help our people thrive, we empower them to own the skills they need. With a vision of being the premier law firm in Vietnam, YKVN is dedicated to nurturing the next generation of legal professionals. We actively seek bright, dedicated law students and professionals with a strong work ethic to join our team, reflecting our commitment to excellence and unmatched legal expertise. Our training typically begins with a compulsory program for associates across all offices. It covers legal fundamentals, ethics, soft skills, client management, and specialized practice areas such as M&A, banking, and arbitration. We offer internal insight seminars, led by senior experts, to explore complex legal issues, and we invite external professionals to deliver essential skills training. Additionally, to broaden our associates’ expertise, we support their attendance at events hosted by legal authorities and professional organizations. Finally, YKVN provides academic and financial support to law students. We award the YKVN Scholarship each year to promising law students. In addition, we collaborate with prestigious universities to provide internship opportunities to qualified students and supports international moot court competitions. To attract the brightest law graduates, our firm offers a range of training opportunities that emphasise early talent and diversity. Many of our training programmes have a strong focus on Pro Bono and Responsible Business activities. This hands-on experience is pivotal for fostering a sense of social responsibility and legal acumen among our trainees. We provide a practical learning environment where emphasis is given to early responsibility and supervised client contact, encouraging our trainees to develop key legal and business skills. The Charles Russell Speechlys Business School is also central to our approach, offering a tailored programme to all early talent. Our Business School helps individuals to develop essential professional and commercial skills, from personal organisation to understanding the firm’s financial performance. Our commitment to personal growth extends through every career stage, ensuring continuous development and alignment with the firm’s ethos from the most junior levels to the most senior. Understanding the importance of diverse perspectives, we have implemented both traditional and reverse mentoring schemes, underpinning our diversity and inclusion objectives. FORUM Rachael Guan graduate recruitment and development manager, Mayer Brown Truong Nhat Quang managing partner, YKVN Silvia On head of Hong Kong office, CRS What training initiatives has your organisation established to attract law graduates, and which essential skill sets are required for the new generation of legal professionals?
7 Asian Legal Business | October 2024 DEALS $1.2 bln NTPC Green Energy’s IPO Deal: IPO Firms: JSA Advocates & Solicitors; Trilegal Jurisdiction: India $1.07 bln Panasonic Connect’s strategic partnership with ORIX Deal: M&A Firms: Bayfront Law; Nishimura & Asahi; Walalangi & Partners; WM Leong & Co Jurisdiction: Japan $900 mln IHH Healthcare’s acquisition of Island Hospital Deal: M&A Firm: A&O Shearman Jurisdiction: Malaysia $782 mln Bajaj Housing Finance’s IPO Deal: IPO Firms: Cyril Amarchand Mangaldas; Khaitan & Co; Linklaters Jurisdiction: India $3.5 bln Midea Group’s IPO Deal: IPO Firms: Freshfields Bruckhaus Deringer; Jia Yuan Law Offices; King & Wood Mallesons; Shihui Partners; Skadden, Arps, Slate, Meagher & Flom Jurisdictions: China, Hong Kong Chinese home appliance giant Midea Group’s recent $3.5 billion initial public offering on the Hong Kong Stock Exchange has sparked renewed interest in the city’s IPO market. According to Reuters, the offering by the Shenzhen-listed Midea would be the biggest in Hong Kong since JD Logistics raised $3.16 billion in May 2021. The deal eclipses Hong Kong’s most recent biggest deal, by Chinese lithium battery maker CALB, which raised $1.3 billion in October 2022. The company’s successful listing is seen as a positive sign for Hong Kong’s financial sector, which has faced challenges in recent years due to economic uncertainties and geopolitical tensions. Midea’s IPO is viewed by many analysts as a potential catalyst for revitalizing investor confidence and attracting more high-profile listings to Hong Kong. This development could help reinforce Hong Kong’s position as a key global financial hub and potentially lead to a turnaround in the city’s IPO market performance. Particularly, other large Chinese firms might be encouraged to list in Hong Kong, especially given the increased scrutiny they face in US markets. Businesses from Southeast Asia or other parts of the region might also turn to Hong Kong once again as an attractive option for raising capital. $771 mln Samvardhana Motherson’s QIP Deal: ECM Firms: Cyril Amarchand Mangaldas; Khaitan & Co; Linklaters Jurisdiction: India $694 mln Bain’s acquisition of Red Baron Group Deal: M&A Firms: Anderson Mori & Tomotsune; Nishimura & Asahi; Ropes & Gray Jurisdiction: Japan, U.S. $600 mln Actis Capital’s investment in Terra Solar project Deal: M&A Firms: Latham & Watkins; Milbank; SyCip Salazar Hernandez & Gatmaitan Jurisdictions: Philippines, UK $525 mln Oravel Stays’ (OYO) acquisition of G6 Hospitality from Blackstone Deal: M&A Firms: AZB & Partners; Simpson Thacher & Bartlett Jurisdictions: India, U.S. $393 mln Mitsubishi UFJ Financial Group’s acquisition of stake in Mynt Deal: M&A Firm: Nishimura & Asahi Jurisdictions: Japan, Philippines The Briefs
8 Asian Legal Business | October 2024 Can a new cybersecurity law make Hong Kong safer? In response to the increasing number of cyberattacks and significant breaches of critical infrastructure globally in recent years, Hong Kong has quickly taken steps to enhance its cybersecurity framework, aiming to protect the city’s cyber capabilities and strengthen its resilience. In June, the government proposed a new legislative framework to enhance the protection of computer systems of critical infrastructures, which has been undergoing consultation within the industry until August. Lawyers are positive about the legislative impact of the bill, but it remains to be seen the extent to which these consultation responses will materialise into the changes to the proposed bill. The government plans to establish a Commissioner’s Office under the Security Bureau within one year of the proposed Bill’s approval, with the Bill set to take effect six months thereafter. This office will have the authority to investigate and enforce compliance with the new obligations outlined in the Bill. 1 What are the key provisions and the scope of the bill? The Protection of Critical Infrastructure (Computer System) Bill focuses on operators of critical infrastructure (CIOs) essential for the uninterrupted provision of vital services in Hong Kong, as well as for sustaining key societal and economic functions within the city. Wilfred Ng and Danny Leung, partners at Bird & Bird in Hong Kong, point out that the proposed bill adopted an “organisation-oriented” approach with a clearly defined scope. Only the critical computer systems (CCSs) of CIOs will be regulated under the proposed bill. “CCSs are systems which are necessary for the provision of essential services and those systems which, if interrupted, will seriously impact the normal functioning of the CIOs,” note Ng and Leung. “Once designated, the statutory obligations will apply to the CCSs regardless of whether they are physically located in Hong Kong or elsewhere.” Organisations, instead of individuals, will be held accountable for potential non-compliance with the obligations. As such, businesses are advised to keep a close eye on the progress of the proposed legislation and assess their current cybersecurity measures. Notably, key obligations to the Commission’s Office set out in the bill include organisational obligations, which mean CIOs need to keep the office updated on the ownership and operatorship of the infrastructure; preventive obligations that mandate the submission of security management plan and results of regular independent audits; and incident reporting and response obligations. These obligations may also affect CCSs physically located outside of Hong Kong. “In addition, upon request by the office in the course of investigating an incident or offence, CIOs must submit relevant information available to them, even if such information is located outside Hong Kong,” note Ng and Leung. 2What challenges remain? Under the proposed bill, designated industryspecific regulators such as the Hong Kong Monetary Authority and the Communications Authority, will be entrusted to set industry standards and requirements in the essential services sector. This is important for meeting the organisational and preventive obligations outlined in the Bill. Nonetheless, Ng and Leung also note that the Commissioner’s Office may initiate investigation and address the incident with the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force and the Hong Kong Computer Emergency Response Team Coordination Centre as necessary. “Accordingly, further regulatory clarity is expected between the office and industry regulators to ensure there is clear guidance for organisations to navigate when establishing its response mechanisms to computer security incidents,” they caution. 3What direction are the regulators likely to be headed? Once the bill is enacted, Ng and Leung expect organisations designated as a CIO leveraging on existing compliance framework to meet the relevant cybersecurity statutory obligations. “In preparing for the statutory obligations, the CIOs should capitalise on existing infosec and cybersecurity compliance programme taking into account the organisational and preventative obligations stipulated under the Bill, incident reporting deadlines, and the extent to which any statutory obligations will need to be reflected in vendor agreements with affiliated entities or third-party service providers,” they explain. But Ng and Leung also point out that the bill targets not only the CIOs as other non-CIO organisations could also be indirectly encouraged to revisit and expand on their existing cybersecurity compliance framework. Notably, the Privacy Commissioner of Personal Data has also indicated plans to introduce mandatory breach notification requirements. The Briefs EXPLAINER
9 Asian Legal Business | October 2024 Stuart D’Addona Leaving: Walkers Going to: Campbells Practice: Disputes Location: Hong Kong Position: Partner Earl Rivera-Dolera Leaving: Frasers Law Company Going to: Tokyo International Law Office Practice: Disputes Location: Tokyo Position: Partner Chris Hodgens Leaving: Baker McKenzie Going to: Atsumi & Sakai Practice: M&A Location: Tokyo Position: Partner Maria Sit Leaving: Dechert Going to: Hogan Lovells Practice: Litigation, Regulatory Location: Hong Kong Position: Partner Anthony RV Jacoba Leaving: Anthony V. Jacoba Law Office Going to: Ocampo & Suralvo Law Offices Practice: Disputes, Insolvency Location: Manila Position: Practice Head Eunjee Kim Leaving: Bae, Kim & Lee Going to: Dentons Lee Practice: Employment Location: Seoul Position: Senior Attorney John Kwak Leaving: Kim & Chang Going to: Baker McKenzie KLP JV Practice: Tax Location: Seoul Position: Partner Dennis Li Leaving: Travers Thorp Alberga Going to: Ogier Practice: Funds Location: Hong Kong Position: Partner Nguyen Ngoc Phuc Leaving: Mori Hamada & Matsumoto Going to: Nishimura & Asahi Practice: Real Estate, Corporate Location: Ho Chi Minh City Position: Partner Patcharaporn Pootranon Leaving: Deloitte Legal Going to: Tilleke & Gibbins Practice: Capital Markets Location: Bangkok Position: Partner Edwin Sim Leaving: Lexton Law Corporation Going to: Covenant Chambers Practice: Disputes Location: Singapore Position: Partner Harris Toengkagie Leaving: Makarim & Taira S. Going to: Hiswara Bunjamin & Tandjung Practice: Disputes Location: Jakarta Position: Partner Esther Wee Leaving: Harry Elias Partnership Going to: RHTLaw Asia Practice: Intellectual Property Location: Singapore Position: Partner Maria Sit, the former managing partner of Dechert’s recently shuttered Hong Kong office, is moving to Hogan Lovells along with partner Michael Wong and three associates. “Maria’s experience in regulatory enforcement and dispute resolution, particularly in mainland China, significantly strengthens our ability to serve large conglomerates in the region,” added Des Hogan, head of disputes at Hogan Lovells. The additions are part of Hogan Lovells’ strategy to strengthen its capabilities in funds, complex disputes, and cross-border investigations within the APAC region. “The addition of Michael and Maria reflects our ongoing commitment to APAC and to build a robust, multi-disciplinary team. Their combined expertise will enhance our client offering and help us capture new opportunities in Hong Kong and beyond,” noted Owen Chan, managing partner of the Hong Kong office. Once Sit arrives, Hogan Lovells’ Hong Kong office will have 40 feeearners, including 16 partners. The Briefs APPOINTMENTS
10 Asian Legal Business | October 2024 The Briefs Cyril Shroff, Cyril Amarchand Mangaldas ALB: CAM has been actively pursuing expansion in recent months. What is the underlying strategy driving this recruitment initiative? Cyril Shroff: CAM’s growth story is intrinsically tied and propelled by India’s growth story in recent years, and consequently its clients. This is what has motivated us to expand through all possible routes- organically, through campus hires and internal promotions, in organically, where our brand equity, reputation and client reach has attracted the best of lateral talent to seek to partner with us the firm; and finally, internationally, where we have expanded across jurisdictions where clients are intent on doing business with the country. This is across practice areas, doubling down on our core capabilities and expanding to new areas to support our clients – our acquisition of an IP practice is indicative of this. We have been focusing on targeted efforts to make our services more accessible to our clients who span India and the world. So far, we have offices in six Indian cities, Singapore and Abu Dhabi. Both regions have established thriving hubs for global business – and opening offices here shows our commitment to these jurisdictions and increasing cooperation. We don’t expect over-capacity risks given the velocity of growth of the market - there is just so much demand, we have been turning down several deals that come to us. ALB: Speaking of the new Abu Dhabi office, what is your vision for CAM’s global expansion, and what strategies do you intend to implement to achieve this? Shroff: UAE and India have historic ties, and these have been deepening through multiple recent initiatives, including the signing of trade agreements and technology cooperation agreements between the two countries. UAE is the location of choice for Indian family offices, startups and conglomerates looking to globally expand. We are bullish on the UAE and the Middle East as a region; and the UAE is a trusted partner to India. Increasing investment and expansion of presence of UAE-based entities in India will make CAM their go-to legal service provider for Indian law advice. Our establishment of presence in the UAE is a part of the firm’s larger strategic view of global practice and the United Arab Emirates as a thriving hub for global business. It shows our commitment to the region and its prospects for collaboration. Establishment of a presence in ADGM will give further impetus to CAM’s international presence and will be a stepping-stone for CAM in the Middle East region. ALB: The Indian legal landscape is experiencing a significant transformation marked by increased openness and flexibility. What do you believe this trend signifies for the future of law firms in India in terms of practice areas and offerings? Shroff: The legal market should open up and Indian firms should also professionalise to offer services that are global in scope. Regarding our own stand, whether the market opens or not, we are going to remain independent. We are not tying up with anybody. We are not interested. I think just being the national champion - keeping your own identity in a market as large as India - is the obvious right answer. There are always a couple of national champions that survive and thrive. So long as we are positioned to be part of that small subset, we are in some ways agnostic as to whether the market opens up or not. There is enough depth and variety in the Indian market for national champions to survive, and I am pretty confident that we will have our place. The “opening up” of the market, will provide an opportunity to scale our services up to global standards and the sector will benefit from some international competition. Cyril Shroff, managing partner of India’s Cyril Amarchand Mangaldas (CAM), discusses the firm’s recent expansion efforts including the firm’s new office in Abu Dhabi, offers his views on the changing legal landscape in India, and shares his perspective on the future of Indian law firms in light of market developments. “There is enough depth and variety in the Indian market for national champions to survive, and I am pretty confident that we will have our place. The ‘opening up’ of the market, will provide an opportunity to scale our services up to global standards and the sector will benefit from some international competition.” THE Q&A
11 Asian Legal Business | October 2024 The Briefs Mediation grows in popularity as Singapore stakes claim as dispute resolution hub Capitalising on its high accessibility, geopolitical neutrality, and stable policy environment, Singapore has been increasingly tapped as a top choice for mediation, a more amicable avenue to resolve contractual conflicts arising from commercial activities. In August, the city-state hosted a week-long conference to bring together main players in the dispute resolution sphere to explore innovation and the way forward. The Singapore International Mediation Centre (SIMC) occupied a spotlight at the event, having marked its 10th anniversary this year by launching an AI tool to streamline mediation proceedings including automating the presentation of case facts. Ian Teo, managing director at Helmsman, observes that Singapore’s rise as a premier international mediation centre has highlighted mediation as a compelling and economical choice for businesses engaged in commercial disputes. Teo believes the Singapore Convention on Mediation has served to enhance the enforceability of mediated settlement agreements across borders and contribute to the gaining popularity of mediation as a mode of dispute resolution. The convention is a multilateral treaty offering a uniform framework for the enforcement and invocation of international settlement agreements resulting from mediation. To date, it has 57 signatories and 14 parties, including the United States, China, India and South Korea. However, the treaty has only entered into force in Belarus, Ecuador, Fiji, Georgia, Honduras, Japan, Kazakhstan, Nigeria, Qatar, Saudi Arabia, Singapore, Sri Lanka, Turkey, and Uruguay. Teo also sees that tiered dispute resolution clauses, which mandate contract parties to undertake mediation before adjudicatory proceedings, have become more common. “This, together with the duty imposed by the Rules of Court 2021 on parties to consider amicable resolution of their disputes before commencing Court proceedings, have contributed to the trend,” says Teo. Consequently, Teo’s team has been increasingly advising clients on mediation as a potential dispute resolution option, and mediation strategies in the management of complex commercial disputes. In such situations, the emphasis of the cases naturally shifts to working together to tackle challenges and explore innovative solutions, as opposed to assigning liabilities in a contentious encounter in courts. “Clients view legal proceedings as a matter of last resort as such proceedings yield a win-lose outcome that is not necessarily satisfactory to either party. Many clients prefer to explore other possible alternatives first before resorting to legal proceedings. This includes mediation, which offers advantages such as confidentiality, control over the process, and the ability to preserve relationships,” notes Teo. Historically, mediation was regarded as a straightforward approach focused exclusively on helping conflicting parties reach an agreement. Now, lawyers have observed that the emergence of more adaptable strategies has transformed this field, enabling a blend of techniques that more effectively match the needs of all participants. “This means that parties may opt for plain vanilla mediation options, but also more flexible options which incorporate mediation into other modes of dispute resolution,” explains Teo. Teo highlights two of these other modes. One is “Arb-med-arb” where a dispute is first referred to arbitration before mediation is attempted. If the matter is still unresolved, the parties will return to arbitration to reach a final decision. “This approach allows parties to benefit from the structured decisionmaking of arbitration while also having the opportunity to reach a consensual resolution through mediation,” notes Teo. “Similarly, lit-med-lit involves starting with litigation, moving to mediation, and then returning to litigation if necessary. This hybrid approach can be particularly effective in complex disputes where initial legal positions may be inflexible but where parties are open to negotiation,” he adds. These flexible approaches have made mediation attractive for parties still engaged in ongoing business relationships. And as Teo points out, the growing popularity of mediation as a dispute resolution revenue is not exclusive to any specific sector. Even when parties fail to completely settle their disagreements through mediation, the process can still yield advantages. “Parties may be able to agree on certain aspects of their dispute or streamline complex issues for determination in legal proceedings. This could cut down significantly on the time and costs that would otherwise be incurred in a protracted legal battle,” adds Teo.
12 Asian Legal Business | October 2024 Technology dialogues, including ongoing efforts to harmonise technological growth with societal values and regulatory requirements. Japan and South Korea are taking distinct yet parallel paths in areas such as data privacy, artificial intelligence, and platform governance. Despite their unique approaches, both countries are moving towards more structured regulatory frameworks, particularly in data and AI governance. As they navigate this complex terrain, their decisions are poised to have far-reaching implications for the global tech industry, potentially influencing regulatory trends worldwide. Regulatory landscape Japan and South Korea have established comprehensive regulatory frameworks, each with its distinct characteristics. Japan’s Act on the Protection of Personal Information (APPI) and the Telecommunications Business Act (TBA), which can be generally applied to data privacy issues regardless of industry sector, are the main laws that govern technology companies. The Act on Prohibition of Private Monopolisation and Maintenance of Fair Trade; and the Anti-Monopoly Act (AMA) govern antitrust tech issues. South Korea’s structure comprises The Personal Information Protection Act (PIPA), renowned for its stringent privacy protections, The Network Act, overseeing online content and cybersecurity, and The Telecommunications Business Act, regulating telecommunications services. In the realm of artificial intelligence, both nations have adopted cautious approaches. Japan has implemented a soft law approach based on nonenforceable guidelines and encourages businesses to take voluntary measures to deal with the risks that will or may arise through or as a result of AI use. However, the Japanese government may be changing this approach slightly, says Noriya Ishikawa, a partner at Nishimura & Asahi. “It is considering regulating providers of generative AI that are or reach a certain scale, via hard law, in order to solve certain problems that may arise due to the use of generative AI, for example, the dissemination of false information and misinformation,” Ishikawa says. A first meeting of a newly constituted AI governance panel, led by thenPrime Minister Fumio Kishida, in August called for the study of legal restrictions based on four basic principles: ensuring both the security and competitiveness of AI; creating a system flexible enough to respond to technological changes; complying with international guidelines; and proper procurement and use of AI by the government. In Asia’s original tech powerhouses Tokyo and Seoul, a new chapter in technological governance is unfolding. As both nations stride into a new era of tech governance, they face the challenge of fostering innovation while addressing the complex issues that arise from rapid technological advancement. Conversations between ambitious entrepreneurs and cautious policymakers reflect broader national A digital balance Japan and South Korea, long considered at the forefront of Asian technological innovation, are now crafting intricate strategies to balance digital progress with regulatory oversight. By Nimitt Dixit • Japan and Korea crafting distinct tech regulation strategies • Asian tech policies potentially influencing global regulatory trends • Companies need to balance innovation with complex compliance challenges
13 Asian Legal Business | October 2024 Technology Japan is also currently proposing new regulations that will subject some advanced technologies, in which the country has a high market share and which are not currently regulated, to prior reporting. “The targets will be decided in consultation with companies and industry associations. The prior reporting list is intended to cover advanced equipment and materials that can be used for civilian purposes but can also be converted to military use, and which other countries are interested in acquiring,” explains Takashi Nakazaki, special counsel at Anderson Mori & Tomotsune. South Korea’s Ministry of Science and ICT is developing the Framework Act on Artificial Intelligence, focusing on high-risk AI applications. The Personal Information Protection Commission (PIPC) has also issued AI-related guidelines to address privacy issues in AI deployment. “Future regulations may enhance data portability, interoperability, and fair competition,” says Doil Son, the head of intellectual property and technology practice at South Korean Big Six firm Yulchon. “The Korean government is also likely to increase collaboration with international regulatory bodies to address global tech challenges, indicating a proactive yet cautious approach to tech regulation,” Son adds. Global context As the global tech landscape evolves, Japan and South Korea find themselves at a crossroads, particularly when compared to the European Union’s comprehensive Digital Markets Act (DMA). The EU employs a centralised enforcement approach through the European Commission, which can levy hefty fines and mandate structural changes. The DMA specifically targets “gatekeeper” platforms, whereas Japan and South Korea’s regulations encompass a wider range of digital activities. “Japan has no laws or regulations equivalent to the DMA. If there is a violation of existing laws and regulations, such as the APPI or the TBA, the authorities take individual enforcement actions,” Ishikawa says. “The APPI and the TBA do not provide for administrative fines. Instead, the authorities take corrective action through administrative guidance and corrective recommendations,” he adds. Japan has introduced the “Act on Promotion of Competition for Specified Smartphone Software,” a targeted piece of legislation focusing on key digital platforms such as smartphone operating systems, app stores, browsers, and search engines. Like the DMA, the Smartphone Act is applicable to designated businesses that meet a certain threshold to be set by a Cabinet order, explains Takashi Nakazaki, special counsel at Anderson Mori & Tomotsune. South Korea, home to several tech giants, has opted for a broader regulatory approach, with the Korea Fair Trade Commission (KFTC) and Korea Communications Commission (KCC) playing pivotal roles in monitoring compliance and enforcing regulations across the digital sector. South Korea’s tech regulations and the DMA share similarities in their scope and intent to regulate large tech platforms but differ in enforcement mechanisms and specific impacts. The DMA’s specific focus on “gatekeepers” and stringent obligations on data sharing, interoperability, and antiself-preferencing could conflict with South Korean companies’ operations if similar stringent rules are not simultaneously enforced in Korea, Son explains. “This discrepancy might lead to regulatory arbitrage, where companies exploit differences between jurisdictions to minimise compliance burdens,” he says. Industry challenges Tech companies in Japan and South Korea face a complex regulatory environment. In Japan, industry leaders often form collaborative groups to engage with regulatory bodies. In South Korea, large tech conglomerates, known as chaebols, leverage their significant influence in regulatory discussions. Both nations’ tech sectors face similar challenges, including compliance with stringent data protection laws, adapting to rapidly changing regulatory landscapes and balancing innovation with regulatory requirements. “The current preference in Japan is not to avoid market intervention as much as possible, as in the U.S., but to introduce necessary regulations steadily, albeit gradually, while referring to foreign laws and regulations in the EU and other countries,” Ishikawa says. With Japan’s prior reporting list in the works adding compliance burdens on larger companies, affected technology companies are currently seeking to limit its impact on their businesses by asking the government, in consultation, to minimise and clarify the scope of technology transfers subject to prior reporting, explains Nakazaki. Navigating South Korea’s regulatory landscape poses several challenges for technology companies explains Son. First, compliance with the stringent PIPA demands robust data protection measures, including securing user consent and ensuring data minimisation and anonymisation. Second, the Network Act requires vigilant content monitoring and cybersecurity practices, necessitating substantial investment in technology and manpower. The Telecommunications Business Act’s focus on fair competition may challenge dominant market players to reassess their business strategies. Another critical consideration is the growing scrutiny of digital monopolies by regulators like the KFTC and KCC, which could lead to increased legal and compliance costs. “Moreover, international tech companies must navigate cultural and linguistic differences, understanding local consumer behaviours and regulatory expectations. Effective stakeholder engagement, including with regulators, industry associations, and consumers, is crucial for navigating these complexities and ensuring regulatory compliance,” Son adds.
14 Asian Legal Business | October 2024 ALB Asia 40 Under 40 2024 ALB Asia 40 Under 40 list continues its tradition of recognising exceptional legal talent across Asia. The list features lawyers from diverse jurisdictions and practice areas, selected from over 500 outstanding nominees. The selection process involves a thorough evaluation of their work quality, client and colleague recommendations, and potential for future growth. The list is in alphabetical order, and some lawyers have been profiled. Rankings by Asian Legal Business, text by Bingqing Wang ALB Asia 40 Under 40 2024 14th IESF World Esports Championships and the 2023 SEA Games. Beyond legal practice, he authors articles for Indonesia’s leading online legal resource platform, and serves as the exclusive Southeast Asian partner for Esports Legal News, a Zurich-based platform. Presently, he’s also collaborating on a Wiki/Online Commentary dedicated to legal esports terminology. Richard Henrick I. Beltran 35, partner, Villaraza & Angangco (V&A Law) Richard Henrick I. Beltran is a prominent partner at Villaraza & Angangco (V&A Law) in the Philippines, specialising in banking and finance, project finance, mergers and acquisitions, and fintech. Having joined the firm in 2014, he became a partner in January 2022. With ten years of experience in the legal field, Beltran has made a significant impact in managing complex financial and commercial transactions. Among his key accomplishments is serving as the Partner-in-Charge for the $3.8 billion project finance deal for DITO Telecommunity Corporation. This notable transaction has earned multiple recognitions, including the 2023 Project Finance Deal of the Year at the ALB Philippine Law Awards and the 2024 Project Finance Deal of the Year at the ALB Southeast Asia Law Awards. Beltran successfully guided a diverse team through Yudistira Adipratama 33, managing partner, K-CASE Lawyer Yudistira Adipratama, managing partner at K-CASE Lawyer, has emerged as a pioneering figure in Indonesian sports and entertainment law, focusing on esports. As leader of Indonesia’s first esports-dedicated law firm, he has driven significant industry changes both nationally and internationally. His clientele and collaborators span the entire esports ecosystem, ranging from game publishers, esports clubs, to government organisations. Adipratama played a pivotal role in amending the Indonesian Sports Law, ensuring esports’ recognition as a competitive sport. Additionally, he has drafted regulations for the Esports Federation of Indonesia governing esports implementation which prevails across the whole country, and advised the drafting of a presidential regulation on the national games industry. Under his leadership, K-CASE Lawyer was nominated for TMT Law Firm of the Year 2023 at the Asian Legal Business Awards, as well as ranked on the Indonesian Firms to Watch list. Related to esports policies, Adipratama has represented Indonesia at high-profile conferences like the Asian Sports ADR Summit in Kuala Lumpur, the World Esports Summit in Busan, and the Australia-Indonesia Business Council Conference in Darwin. He has also legally supported Indonesia’s national team participation in major international multisport events, including the 19th Asian Games 2022, the
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