SOUTH KOREA Law and Practice Contributed by: Ho Joon Moon, Sung Min Kim, Allen Hyungi Ryu and Joon Sung Hong, Lee & Ko
Most Common JV Exits A separate agreement between JV partners allowing one party to exit is the most common JV exit strategy in South Korea. Typical exit mechanisms include the following: • termination by mutual agreement; • tag-along rights; • qualified initial public offering; and • put/call options.
the shareholders is binding only among the contract - ing parties and does not affect third parties. Accord - ingly, if a share transfer is made in violation of such an agreement, the transfer remains valid in principle, despite any breach of contractual obligations between the parties. Other than the above, exit strategy is generally a mat - ter that parties can freely determine in the JV agree - ment.
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