[Deals & Cases] Establishment of a JV in Vietnam by a Korean company advised by Chaeum

Chaeum has successfully advised and represented a leading Korean entertainment platform company (the “Company”) to establish a joint venture in Vietnam with a local Vietnamese partner.

The Joint Venture was established by (i) the local Vietnamese company incorporating a new public limited company; and (ii) the Korean company acquiring a majority shares of the newly incorporated company. For this transaction, Chaeum has advised the Korean company with respects to liaising with the Vietnamese attorneys who represent the Vietnamese company, negotiation of necessary agreements such as share purchase agreement and shareholders’ agreement, as well as various reporting requirements in Korea, including requirements under the Foreign Exchange Transaction Act under which the Korean company was required to report the transaction before wiring the share purchase amount to Vietnam.

As there are additional restrictions in Vietnam relating to a foreign investor’s acquisition of business or conducting business involving internet broadcasting services, the parties had to explore various ways to structure the deal for the purpose of strict compliance with the Vietnamese laws, however, the parties were able to successfully reach an agreement.

Chaeum has vast experiences in dealing with cross-boarder transactions, including a Korean company’s global expansion of business such as this case. Should you require any assistance for your cross-border business or investment, please contact us.