On November 23, 2017, Won-Tak Choi, a Kim & Chang attorney, gave a presentation on “Restructuring Korean Business in China” at the Seminar on Legal Issues and Response Strategies of Overseas Korean Businesses.  

During his talk, Mr. Choi discussed various methods by which Korean businesses in China could respond to the changes of “socialism with Chinese characteristics.”  Among his key points, he urged for the diversification of the international trade market, and stressed the need for Korean businesses to secure an additional market or production base in a country besides China.  Mr. Choi also recommended a more thorough review of all regulatory aspects, especially those relating to the environment, tax, customs, (fire) safety, sanitation, labor, and contracts.  He reasoned that according to the declaration of the “rule of law” by the Xi Jinping administration, the Chinese government is expected to strengthen its ability to enforce the rule of law.  

Mr. Choi ended his talk by speaking on detailed restructuring measures available to companies that have invested or entered China, walking the participants through examples of the most frequently seen scenarios, including restructuring of manpower, disposal of assets, disposal of shares, merger and disposal of subsidiaries, dissolution and liquidation, and relocation of factories.

This event was co-hosted by the Korea Chamber of Commerce and Industry (KCCI) and the Ministry of Justice.  KCCI and the Ministry of Justice invited over 350 business professionals to share information on major news on overseas markets and appropriate countermeasures.

About Kim & Chang’s China Practice: Consisting of 60 experts in Chinese law, including 15 Chinese lawyers, our team members possess deep knowledge and experience advising on various restructuring measures in China, including exit for Korean businesses.