Korean law firm creates startup investment association

The Law Office of Choi & Lee, a small-sized law firm, became Korea's first law firm to invest in startups. In one of the most difficult times when even institutional investors are reluctant to invest, it is attracting attention as a law firm acts as s startup investor.

Choi & Lee said on Wednesday that it had recently made a seed investment in Gloud, a digital healthcare startup, by organizing an investment association (Choi & Lee and Gloud Private Investment Association). The size of the investment is reported to be between 600 million and 700 million won ($470,000 - $550,000). This is the first time in which a domestic law firm has made an investment in a company by creating an investment association.

Choi & Lee took on the role of the general partner, which is the lead manager role of the association, and succeeded in enlisting additional investments, including those from medical doctors with a high degree of understanding of the healthcare industry.

Gloud was founded in Sept. 2020 by CEO Ji Jin-woo, a dentist who also studied computer science. After two years of development, the company launched last month "Just Scan," a service that helps dentists with digital dental treatment.

At a flat monthly fee, the company lends an intraoral scanner for dental treatment for free and teaches how to use the equipment. It also lets dentists use prosthetics for patients' teeth by manufacturing them through partner labs.

Choi & Lee, a law firm established in 2019 by Lead Counsel Choi Chul-min, focuses on legal advice needed for attracting investment from startups and small-sized enterprises, contracting between shareholders, and resolving labor disputes.

Write to Jin-Seong Kim at jskim1028@hankyung.com