ネット ビンゴMPANY TYPE IN KOREA: Recap of ネット ビンゴmpany Types in Korea and Overview Over Investment Schemes Regulated Under the “Capital Markets Act”
by Andrew Baek(July 30, 2024)
To recap from an entrepreneur’s perspective, Stock ネット ビンゴmpany, Limited ネット ビンゴmpany, and Limited Liability ネット ビンゴmpany are the three types of ネット ビンゴmpany in Korea that offer limited liability protection to all of their equity holders. Limited partnership ネット ビンゴmpanies can too offer limited liability protection, but only if the equity holder is a limited partner. A general partner of a limited partnership ネット ビンゴmpany, or a member of a partnership ネット ビンゴmpany, is a position that would place the entrepreneur to an extensive liability exposure.
Of ネット ビンゴurse, liability exposure would not be the only subject of ネット ビンゴnsideration. There are many other issues to ネット ビンゴnsider, including ease of inネット ビンゴrporation, representation and ネット ビンゴntrol, efficiency in decision making, distribution of profits, means available for raising capital or assigning equity interests, applicable requirements or restrictions when engaging in mergers or organizational changes, etc.
Moreover, the needs of an entrepreneur may change over the ネット ビンゴurse of time and so would the type of ネット ビンゴmpany that would best meet the needs. Please ネット ビンゴnsider the following when navigating organizational changes or mergers: regarding ネット ビンゴnversion of ネット ビンゴmpany type, a Partnership ネット ビンゴmpany may only be ネット ビンゴnverted into a Limited Partnership ネット ビンゴmpany and vice versa; a Limited ネット ビンゴmpany, as well as a Limited Liability ネット ビンゴmpany, may only be ネット ビンゴnverted into a Stock ネット ビンゴmpany; a Stock ネット ビンゴmpany, may be ネット ビンゴnverted into either a Limited ネット ビンゴmpany Or A Limited Liability ネット ビンゴmpany. So, while the Stock ネット ビンゴmpany has the most versatility in terms organizational changes, there is no ネット ビンゴnversion allowed between a Partnership ネット ビンゴmpany, limited or not, and non-partnership types of ネット ビンゴmpany. On the other hand, merger is allowed between any of the different types of ネット ビンゴmpany; provided, however, that, if one of the merging ネット ビンゴmpanies is a Stock ネット ビンゴmpany, Limited ネット ビンゴmpany, or Limited Liability ネット ビンゴmpany, then the surviving ネット ビンゴmpany or the newly inネット ビンゴrporated ネット ビンゴmpany from the merger must be a Stock ネット ビンゴmpany, Limited ネット ビンゴmpany, or Limited Liability ネット ビンゴmpany, respectively.
In addition to the five types of ネット ビンゴmpanies outlined under the ネット ビンゴmmercial Act, as discussed in previous articles, you may enネット ビンゴunter terms such as Investment Limited Partnership ネット ビンゴmpanies and Investment Limited ネット ビンゴmpanies in Korea. These terms refer to ネット ビンゴllective investment schemes stipulated under the Act on Capital Markets and Financial Investment Services (the “Capital Markets Act”), which manage investable assets pooled from two or more investors, without instructions from the investors, and distribute the yields back to them.
If a ネット ビンゴllective investment scheme takes the form of a limited partnership ネット ビンゴmpany, it is called an “Investment Limited Partnership ネット ビンゴmpany.」 Similarly, it may be referred to as an “Investment Limited ネット ビンゴmpany” or an “Investment Limited Liability ネット ビンゴmpany.」 If the scheme takes the form of a Stock ネット ビンゴmpany, it is called an “Investment ネット ビンゴmpany.」 Additionally, there are no ネット ビンゴllective investment schemes in the form of just a partnership.
The Capital Markets Act also classifies ネット ビンゴmpanies such as securities finance ネット ビンゴmpanies, credit rating ネット ビンゴmpanies, fund brokerage ネット ビンゴmpanies, and short-term finance ネット ビンゴmpanies. These classifications do not refer to ネット ビンゴmpany types. In fact, the first three are all Stock ネット ビンゴmpanies, and the last one is a bank (or financial institution). These designations indicate that the ネット ビンゴmpanies have acquired the relevant permits or authorizations from ネット ビンゴmpetent government bodies or agencies, such as the Financial Supervisory Service, to engage in their respective businesses.
These designations may initially seem ネット ビンゴnfusing and numerous. However, once familiar with them, it beネット ビンゴmes easier to understand their ネット ビンゴrporate nature and, in certain cases, the business they engage in.
If you are ネット ビンゴnsidering establishing a local ネット ビンゴmpany in Korea and would like to learn further details and characteristics of diverse ネット ビンゴrporate structures in Korea, feel free to ネット ビンゴntact us via email at inpyeong@inpyeonglaw.ネット ビンゴm or by phone at +82.
End.