Intending to do a joint venture with a Korean company? Buying a company in Korea? Licensing technology to a Korean company? OEM with a Korean supplier? Selling to a Korean company?
Before going to bed with a Korean company do a little due diligence. The motivation for this article is an article by my friends over at the China Law Blog.
Due diligence in Korea is not much different than due diligence in China. The China Law Blog notes, in part, that after do a basic search on the internet a company should:
“Then do your due diligence the old fashioned way. Ask your potential Chinese counter-party for relevant documents showing its various registrations and financial condition. In particular, get its tax returns.
And if your potential counter-party will not turn over what you reasonably seek? Seriously consider walking away. In our experience, legitimate Chinese companies do not balk at providing documents that reinforce that they are who they say they are.
And if your potential counter-party does turn over the documents you reasonably seek? Then get someone who truly knows what he or she is doing to thoroughly review those documents.” It is that simple.
I wrote a few more articles on this issue that may be of interest to the reader:
- Doing Business in Asia: Due Diligence, Agreements and Attorneys
- Stock Purchase/M&: A Due Diligence Checklist
- Listen to my Mother: JVs in Korea
Sean Hayes may be contacted at: SeanHayes@ipglegal.com.
Sean Hayes is co-chair of the Korea Practice Team and Entertainment, Media and New Tech Law Team at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. He assists clients in their contentious, non-contentious and business developments needs in Korea and China.
- Korea Contracts Don’t Forget the Counter-party: Due Diligence before Executing an Agreement in Korea
- Korean M & A Due Diligence Checklist: Mergers & Acquisitions Due Diligence in Korea
- Korean Small Business Partnerships/Joint Ventures: Pubs, Distributors, Exporters, Boutiques, Franchises and Basic Manufacturing etc.
- Credit Rating Agencies in Korea: Due Diligence of Your Supplier, Franchisee, Joint Venture Partner & Distributors
- Contracts Necessary for Doing Business with a Korean Company?
- English-Speaking Business Lawyers in Seoul, Korea: Corporate Law & Compliance Team at IPG Legal