On August 23, 2005, Sovereign Asset Management Ltd., the Dubai-based private investment fund, sold off its entire stocks in LG Group to incur a loss of over 50 billion won, and left for the Korean securities market. Despite the loss, Sovereign Asset Management Ltd. gained an net profit of 850 billion won since it gained an overall profit of over 900 billion won from recent stock sales in SK Corporation. Actually, before the Korean economic crisis in 1997, sovereign Asset Management Ltd. could not buy the stocks of domestic companies such as SK Corp. and LG Group in the Korean securities market. After the Economic crisis, the Korean government took a series of structural reform measures to improve the standard of corporate governance and to enhance corporate management, but also widely opened the financial market to foreign countries abolishing or amending some restrictions on foreign investments and introducing new securities market systems. In particular, the opening of financial market caused confusion in the Korean financial market, which had not had competitive power under the governmental governing system. Moreover, we recently faced with the "Sovereign Case," which the foreign investment fund acquired the very much profits from the domestic companies and dumped the domestic companies when the foreign investment fund decided that there were no more benefits of the domestic companies.
However, after the economic crisis, we have experienced many changes. Some of the changes are very much helpful for the Korean financial market, but some are not helpful, or even painful for the Korean financial market from the perspective of the domestic companies. One example of painful changes is increasing litigations against the domestic enterprises. Since the enterprise litigations may cause the loss of the managemental efficiency, it may also bring about shrivelling of the Korean financial market. Therefore, this review examines the enterprise risks and proposes some counter measures against the enterprise litigation risks in order to improve the enterprise managemental circumstances.