Forming a Joint Venture in Korea, China & Southeast Asia: Listen to My Mother

My mother often told me, when I was much younger, to look both ways before crossing the street; carry an umbrella in the spring; and don’t go out alone in the dark. The advice can go a long way for Korean companies doing business outside Korea and for expats doing business in Korea. As we all know, Korean companies and many foreign companies lament over the fact that it is nearly impossible for Korean companies, with the exception of the

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Top 100 Korean Lawyers & Legal Consultants in Korea

Sean Hayes, head of the Top Korean Dispute Resolution Law Firm of the Year was rated by LawAsia, one of the leading peer-reviewed publications in Asia, as a Top 100 Lawyer in Korea. Sean Hayes is one of the only non-Korean attorneys on this Korean Lawyer “A-list” and the only non-Korean that was on the list each year the list was published. Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of

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Minimum Capital Requirements for Setting Up a Corporation in Korea

My friend at the Korean Tax Blog has an excellent post on the minimum capital requirement for setting up a company in Korea. The post notes that: Before 2009, Korean law required a minimum capital of 50 million KRW to estabish a corporation. However, since February 2009, there are no longer any restrictions related to mimimum capital in Korean Law. www.thekoreantaxblog.com This amendment to Korean Law has made it easier to open a company in Korea. However, to open a

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Acquiring Shares in Closed Korean Corporations in Exchange for Products at Discount: Don’t Forget the Due Diligence in Korea

I just received a phone call from a prospective client with a wonderful product that has been offered a sweetheart deal.  Whenever I hear that someone has received a no risk or sweetheart deal in Korea, a red flag immediately goes up in my head and I immediately request the client to let me do a couple of weeks of due diligence. One of the many, ubiquitous, sweetheart deals is ownership of shares in company in exchange for some benefit

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Korean Jurisdictional and Choice of Law Issues in Commercial Agency & Distributor Agreements with Korean-based Agents & Distributors

In drafting and negotiating a Korean commercial agency agreement between a principal located in one country and an agent located in Korea, proper consideration needs to be given to the choices regarding the governing law and jurisdiction of such an agreement. If you are looking for an article on choice of law issues in Korean employment disputes, please see: Choice of Law Issues in Korean Employment Law Disputes. If you are looking for a basic overview of Korean Agency &

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14 Things to Consider Before Starting a Manufacturing Business in South Korea

Korea, in many cases, is a better choice for the manufacturing of chemical, petroleum, construction equipment, complex crafted metals, specialty steel, automotive parts, semi-conductor, medical and pharmaceutical equipment and goods than China and most nations in Asia, because of Korea’s skilled work force, government incentives, protection of IP and increasingly transparent business practices. In many cases, manufacturing in Korea will not, in the end, be more costly than manufacturing in China, because of the increased efficiency of Korean workers and

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South Korea Offers a Variety of Business Visas for those Wishing to Conduct Business in Korea

South Korea offers several types of business visas for foreign nationals who want to conduct business activities in the country. These include the D-7 (Investor/Business Manager) Visa, D-8 (Corporate Investment) Visa, and D-9 (International Trade and Investment) Visa, among others. Each type of visa has its own eligibility requirements and conditions, and applicants must provide proof of their business plans and financial ability in order to obtain the specific visa. Korea’s visa laws are, often, changing. For an article quoting

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Forming a Joint Venture in Korea? Beware a Common Pitfall

A client, a minority shareholder in a foreign-capital-invested company in Korea is involved in litigation with other company shareholders (Korean shareholders) over issues the client had with the majority and other shareholders. The client requested me to post this article to warn others entering the Korean market via a Joint Venture or similar arrangement. This article is not intended to discourage entering the Korean market via a joint venture. JVs in Korea are, often, beneficial for businesses looking to expand

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Steps to Set up a Business in South Korea

Setting up a corporate entity in South Korea involves several steps and can be complex. If you are setting up a Korean venture between multiple parties or corporations make sure you have a carefully and custom-drafted Korean shareholder agreement, bylaws, articles of incorporation, employment agreements, employment rules, vendor agreements and you have the basic systems and processes in place to help ensure working shareholder and employee compliance. Even if you are the, only, shareholder in the company make sure to

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Why you Should Setup a Corporation in South Korea?

IPG Legal has assisted clients in the process of setting up a corporate entity in South Korea. Yes, it can be complex and time-consuming, but getting started on the right food is, often, the most important part to a successful business in Korea. For a list of corporate forms in Korea, please see: Korean Corporate Forms under the Korean Commercial Code. It is advisable to seek, in all but the most exceptional of cases, the assistance of a law firm

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