KO-ed in Korea

Derivatives litigation has reached a new level in South Korea, where early court rulings on corporate currency options positions went against financial institutions and threatened the legal enforceability of derivatives contracts in the country. A change in the presiding judge may favour the banks, but has yet to take the heat out of the situation amid cries of foul play. Duncan Wood reports

During the past four months, Seoul's Central District Court - an imposing tower that looms over its surroundings in the heart of 'new' Seoul, south of the Han river - has provided the setting for a still-unfolding drama that has brought a portion of the local derivatives market to a standstill. An army of small and medium-sized companies - some of them employing as few as 50 people - are queueing