DLG Law Firm (Representative Attorneys Wonhee Cho and Heechul Ahn) announced on the 14th that it signed a business agreement (MOU) with Samsung Fire & Marine Insurance and Korean Re at the Samsung Fire & Marine Insurance headquarters on the 12th for the development of the statement and guarantee insurance market.
The signing ceremony held at the Samsung Fire & Marine Insurance headquarters in Seoul on this day was attended by Ahn Hee-chul, the representative attorney of DLG Law Firm, Choi Jae-bong, vice president of Samsung Fire & Marine Insurance, and So Byeong-gi, executive director of Korean Re.
Through this agreement, the three companies will promote professional exchanges and business cooperation to expand the statement and guarantee insurance market. In particular, they will conduct joint research for new business development along with the exchange of M&A-related technology, information, personnel, and facilities.
This cooperation is expected to further strengthen the stability of domestic M&A transactions and enable the provision of systematic and professional insurance services.
Representation and Warranty Insurance is a product in which the insurance company assumes the liability for damages arising from the seller's breach of representations and warranties in an M&A transaction. It guarantees the accuracy of information provided by the seller to the parties to the transaction or the target company, and through this, the buyer can be protected from risks not discovered during the due diligence process.
In particular, for sellers, there is an advantage in that a clean exit is possible without setting up a separate escrow account. In North America and Europe, representation and guarantee insurance has already become an essential element of M&A transactions, and demand is also increasing in Asian markets, including Korea.
“Through this business agreement, we expect to be able to present a new development model for the statement and guarantee insurance market by combining the expertise and resources of each company,” said Ahn Hee-chul, managing attorney at DLG Law Firm. “We will do our best for the sound development of the M&A market.”
Meanwhile, DLG is preparing for a new leap forward in the development of the M&A market by strengthening cooperation with leading insurance companies through this agreement based on its experience in successfully advising on numerous large-scale M&A transactions.
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