Forum discusses strategies for handling overseas construction disputes; third-party funders cover legal costs and provide network support

Lee Tae-heon, a foreign attorney at Litick Equity Partners, leads a forum Thursday on international litigation strategies and receivables recovery for Korean construction companies. [Park Ji-young]
Lee Tae-heon, a foreign attorney at Litick Equity Partners, leads a forum Thursday on international litigation strategies and receivables recovery for Korean construction companies. [Park Ji-young]

"The strength of TPF — third-party funding for international disputes — is that it brings the opposing party to the negotiating table and allows for early resolution. A number of Korean construction companies are already using TPF to handle disputes that have arisen in the Middle East, Latin America and Southeast Asia."

Lee Tae-heon, a foreign attorney at Litick Equity Partners, made the remarks Thursday as he described TPF as a rising alternative for Korean construction companies grappling with trillions of won in unpaid overseas project receivables and international disputes each year. Litick Equity Partners hosted the "Global Construction Dispute Forum 2026 — International Litigation Strategies and Receivables Recovery for Korean Construction Companies" at the Korea Chamber of Commerce and Industry.

TPF refers to an arrangement in which a third-party funder covers the legal, expert and institutional costs incurred during an international dispute. In return, the funder receives a share of any award upon a successful outcome. Because the disputing company bears no costs in the event of a loss, TPF has drawn attention as a viable option for firms facing international disputes worth hundreds of billions of won.

According to the Ministry of Land, Infrastructure and Transport, unpaid receivables from overseas construction projects have totaled between 1.3 trillion won and 1.7 trillion won (roughly $854 million to $1.1 billion) annually in recent years — rising from $1.2 billion in 2021 to $1.356 billion in 2022 and $1.363 billion in 2023, before falling to $900 million in 2024.

Yoon Seok-jun, an attorney at law firm Bae, Kim & Lee, presented on legal strategies to maximize recovery in overseas construction disputes. Yoon is an international disputes specialist who played a key role in the investor-state dispute settlement case between US private equity fund Lone Star and the South Korean government, and recently joined Bae, Kim & Lee after serving at the Korean Commercial Arbitration Board.

"Overseas construction disputes involve a wide range of issues and procedures — scope of work, design changes, delays, additional construction, post-completion defects and payment terms — making disputes highly likely," Yoon said. "For Korean construction companies, overseas construction disputes can affect cash flow and profitability to the point of determining a company's fate. Winning an international dispute matters, but companies also need to establish a debt recovery strategy from the very start of a dispute."

"TPF is one such recovery strategy," he said. "It helps by leveraging the funder's knowledge and experience to locate assets and apply pressure." His point was that while legal action is important when overseas construction project disputes arise, TPF can serve as a strong alternative for companies that lack the internal capacity to respond on their own.

Lee then presented on financial strategies for international litigation and receivables recovery for Korean construction companies. Litick Equity Partners is Asia's only advisory firm specializing in TPF. The firm conducts due diligence on a client company's prospects — including the likelihood of success — before supporting the dispute and recovery process. As of the end of last year, it had provided TPF advisory services to more than 30 companies.

"A TPF funder is not simply a provider of capital but a strategic partner who objectively evaluates a case and helps resolve problems," Lee said. "During due diligence, we verify legal merit, damages, asset recoverability and litigation team capability across multiple dimensions, and we provide a global network for conducting litigation and recovery on the ground. Because the funder bears the costs if the case is ultimately lost, companies can significantly reduce their risk of loss."

Overseas construction disputes are a sector where TPF is particularly prominent, given the scale of the disputes and the length of the proceedings. Lee said TPF is especially useful for achieving early resolution. "Global companies and project owners use a strategy of prolonging disputes to squeeze the finances of the other side — a strategy that small and midsize companies find very difficult to counter," he said. "TPF eliminates the weight-class difference between small and midsize companies and their global counterparts, and corrects the information asymmetry. It pushes the opposing party to change strategy and reach an early settlement."

"Working through global law firms and expert networks that specialize in the construction industry raises the chances of success in international disputes and recovery," Lee said. "Korean construction companies are increasingly turning to TPF." According to Lee, Korean construction companies dealing with receivables disputes in the Middle East, Latin America, Southeast Asia and Africa are using TPF through Litick Equity's advisory services. In countries such as the United States, Japan, China and India, not only companies but also state-owned banks, public institutions and state enterprises are resolving disputes through TPF.

"As Asia's only TPF-specialized advisory firm, we provide optimal funding strategies based on our network of major global funders and accumulated data," Lee said. "Funders evaluate cases rigorously as investors, so direct negotiations without an adviser are not easy. We support companies at every stage — from decision-making and negotiations with funders to dispute resolution and recovery — to maximize their interests."


park.jiyeong@heraldcorp.com