Before going to bed with a Korean company do a little due diligence. The motivation for this article is an article by my friends over at the China Law Blog.
Due diligence in Korea is not much different than due diligence in China. The China Law Blog notes, in part, that after do a basic search on the internet a company should:
"Then do your due diligence the old fashioned way. Ask your potential Chinese counter-party for relevant documents showing its various registrations and financial condition. In particular, get its tax returns.
And if your potential counter-party will not turn over what you reasonably seek? Seriously consider walking away. In our experience, legitimate Chinese companies do not balk at providing documents that reinforce that they are who they say they are.
And if your potential counter-party does turn over the documents you reasonably seek? Then get someone who truly knows what he or she is doing to thoroughly review those documents." It is that simple.I wrote a few more articles on this issue that may be of interest to the reader:
- Doing Business in Asia: Due Diligence, Agreements and Attorneys
- Stock Purchase/M&A Due Diligence Checklist
- Listen to my Mother: JVs in Korea
IPG is engaged in projects for companies and entrepreneurs doing business in Bangladesh, Cambodia, China, Korea, Laos, Myanmar, the Philippines, Vietnam and the U.S.