In practice, when investing in a minority stake of a company, sophisticated investors often incorporate certain provisions into investment agreements or shareholders’ agreement, including: (i) requirements for prior consultation, notification, and consent regarding key management decisions of the company and its major shareholders, and (ii) investor remedies in the event of breaches of these obligations, such as claims for damages or a penalties clause. This article examines the Korean Supreme Court’s decision on the validity of such provisions and key takeaways.