No Court Apprasial Necessary in Korea for In-Kind Contribution to Company

The Presidential Decree of the amended Korea Commercial Code notes that an appraisal by the Korean courts is no longer necessary when issuing equity stocks in exchange for an in-kind contribution in a company if:

1.  The amount of the in-kind contribution is less than KRW 50,000,000 and accounts for less than 20% of the entire equity of the company;
2.  The value of the in-kind contribution is less than the book value listed in the balance sheet of the issuing company; and
3.  Listed securities are contributed at a price equal to or less than the market price.

Other posts on the amended Commercial Code of Korea:

• Korean Commercial Code Revisions Make Capital Reductions in Korea Easier
• Classification of Directors in Korea under the Korean Commercial Code: Inside, Outside and Other Directors in Korea
• Establishing a Company in Korea: New Corporate Forms Available under Revised Korean Code
• Squeezing-out Minority Shareholders under Korean Corporate Law
• Limiting Director Liability under Korean Law: Don’t Drop the Insurance Policy Yet
• Limited Liability Companies under the KCC

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Sean Hayes, IPG's Co-Chair of the Korea Practice Team, may be contacted at: SeanHayes@ipglegal.com