[Deals & Cases] Due Diligence in Korea & Legal Opinion for Hong Kong IPO

Chaeum’s cross-border corporate transaction team has successfully advised the sponsor, a top-tier investment bank located in Hong Kong, in relation to initial public offering (IPO) and the listing of a Hong Kong-based international e-commerce B2C platform operator at the Stock Exchange of Hong Kong Limited, by completing due diligence and providing a legal opinion on its fully owned subsidiary in Korea (the “Target Company”).

The Target Company is in business of procuring various Korean products, mainly Korean cosmetic products, and supplying them to its headquarter company in Hong Kong for the purpose of B2C sales on its international e-commerce platform.

 

Chaeum has completed legal due diligence of the Target company via virtual due diligence as well as visiting the Target Company’s office and warehouse located in Seoul. Chaeum further issued a legal opinion about the Target Company based on the due diligence as well as its analysis on regulatory overview of the key Korean legislations and regulations in English, which have been made available as part of the prospectus. Chaeum has opined on the current Korean regulations for (i) exports of the products; (ii) customs clearance; and (iii) transfer pricing, and in particular, legislations such as the Customs Act, the Act on the Investigation of Unfair International Trade Practices and Remedy Against Inquiry to Industry and Customs Act, the Cosmetics Act, the Copyright Act, the Trademark Act, the Adjustment of International Taxes Act, and employment-related legislation have been reviewed and analyzed. Chaeum has also dealt with further inquiries which have been brought up by the Stock Exchange.

 

Should you require due diligence and/or a legal opinion in relation to a Korean company in light of the Korean laws in English, please do not hesitate to contact us.