[Deals & Cases] Investment in Unlisted Korean Company advised by Chaeum

Chaeum has successfully advised and represented a leading LED specialist Korean market listed company (the “Client”) for its acquisition of shares of a small sized Korean company with advanced LED technologies (the “Target Company”). 

Investment requires patience over time.

Prior to the Client’s decision to invest in the Target Company, the Client and the Target Company have been in co-operative relationship developing leading LED related technologies together, and as the Client appreciated the future value of the technology and the parties wished to enhance their relationship, the Client has decided to invest in the Target Company. The parties have agreed that the Target Company issues 150 ordinary shares as new shares for the Client’s subscription and the total acquisition price was KRW 400,000,000.

 

Accordingly, we have advised on (i) termination of various existing contracts; (ii) issuance of new shares by the Target Company by reviewing various documents including minutes of shareholders’ resolution in issuance of new shares and documents for subscription of new shares; and (iii) shareholders’ agreement. All documents have been written and prepared in Korean with the Korean law as governing law. There were key provisions to protect the Client’s investment such as non-competition, and Chaeum has drafted, negotiated and successfully finalized the wordings to the extent to which the Client’s interests are fully protected.

 

Chaeum has vast experiences in dealing with corporate investment and acquisition of shares in Korean companies, such as this case. Should you require any assistance for your investment transaction in Korea, please simply contact us.