Barun Law (attorneys Oh Hi-joung, Choi Jae-woong, Cho Seo-jin and Lee Hye-jun) successfully advised YoungToys Inc. on establishing a joint venture with a Chinese manufacturer, Rongchuang (Guangzhou) Children’s Cultural Industry Co., Ltd.

Barun Law provided legal advice on the overall matters of establishment of a joint venture, including negotiation of joint venture terms and conditions, and drafting, execution and review of a memorandum of understanding (in Korean and Chinese), a joint venture agreement (in English) and the articles of incorporation of the joint venture (in Chinese). Based on this advisory effort, we proceeded with the establishment of a joint venture and provided the client with advice to ensure that the client's interests were fully reflected under the local regulatory environment.

In particular, in this case, the client had a plan to provide a license essentially required for the joint venture and to invest the largest amount to establish the joint venture in Dalian, China with the Chinese corporation, the joint investor, appointing a representative and taking responsibility for operation of the joint venture. Accordingly, we preemptively reviewed sensitive issues such as future business performance and financial settlement to discuss and respond to potential issues with the counterparty in advance, and advised the client on establishing an internal control system to ensure that the client's authority could be effectively guaranteed in the future.

In addition, we cooperated closely with local law firms, and actively explained and persuaded local competent authorities on discrepancies with the local standard articles of incorporation, which were caused by special joint venture conditions, so that the original articles of incorporation could be passed as initially planned. As a result, the Chinese joint venture was established as of June 11, 2024 and is currently scheduled to begin doing business.


□ Attorneys in charge: Oh Hi-joung, Choi Jae-woong, Cho Seo-jin and Lee Hye-jun