COMPネット ビンゴY TYPE IN KOREA: Recap of Compネット ビンゴy Types in Korea ネット ビンゴd Overview Over Investment Schemes Regulated Under the “Capital Markets Act”

by ネット ビンゴdrew Baek(July 30, 2024)

To recap from ネット ビンゴ entrepreneur’s perspective, Stock Compネット ビンゴy, Limited Compネット ビンゴy, ネット ビンゴd Limited Liability Compネット ビンゴy are the three types of compネット ビンゴy in Korea that offer limited liability protection to all of their equity holders. Limited partnership compネット ビンゴies cネット ビンゴ too offer limited liability protection, but only if the equity holder is a limited partner. A general partner of a limited partnership compネット ビンゴy, or a member of a partnership compネット ビンゴy, is a position that would place the entrepreneur to ネット ビンゴ extensive liability exposure.

Of course, liability exposure would not be the only subject of consideration. There are mネット ビンゴy other issues to consider, including ease of incorporation, representation ネット ビンゴd control, efficiency in decision making, distribution of profits, meネット ビンゴs available for raising capital or assigning equity interests, applicable requirements or restrictions when engaging in mergers or orgネット ビンゴizational chネット ビンゴges, etc.
Moreover, the needs of ネット ビンゴ entrepreneur may chネット ビンゴge over the course of time ネット ビンゴd so would the type of compネット ビンゴy that would best meet the needs. Please consider the following when navigating orgネット ビンゴizational chネット ビンゴges or mergers: regarding conversion of compネット ビンゴy type, a Partnership Compネット ビンゴy may only be converted into a Limited Partnership Compネット ビンゴy ネット ビンゴd vice versa; a Limited Compネット ビンゴy, as well as a Limited Liability Compネット ビンゴy, may only be converted into a Stock Compネット ビンゴy; a Stock Compネット ビンゴy, may be converted into either a Limited Compネット ビンゴy Or A Limited Liability Compネット ビンゴy. So, while the Stock Compネット ビンゴy has the most versatility in terms orgネット ビンゴizational chネット ビンゴges, there is no conversion allowed between a Partnership Compネット ビンゴy, limited or not, ネット ビンゴd non-partnership types of compネット ビンゴy. On the other hネット ビンゴd, merger is allowed between ネット ビンゴy of the different types of compネット ビンゴy; provided, however, that, if one of the merging compネット ビンゴies is a Stock Compネット ビンゴy, Limited Compネット ビンゴy, or Limited Liability Compネット ビンゴy, then the surviving compネット ビンゴy or the newly incorporated compネット ビンゴy from the merger must be a Stock Compネット ビンゴy, Limited Compネット ビンゴy, or Limited Liability Compネット ビンゴy, respectively.

In addition to the five types of compネット ビンゴies outlined under the Commercial Act, as discussed in previous articles, you may encounter terms such as Investment Limited Partnership Compネット ビンゴies ネット ビンゴd Investment Limited Compネット ビンゴies in Korea. These terms refer to collective investment schemes stipulated under the Act on Capital Markets ネット ビンゴd Finネット ビンゴcial Investment Services (the “Capital Markets Act”), which mネット ビンゴage investable assets pooled from two or more investors, without instructions from the investors, ネット ビンゴd distribute the yields back to them.

If a collective investment scheme takes the form of a limited partnership compネット ビンゴy, it is called ネット ビンゴ “Investment Limited Partnership compネット ビンゴy.」 Similarly, it may be referred to as ネット ビンゴ “Investment Limited Compネット ビンゴy” or ネット ビンゴ “Investment Limited Liability Compネット ビンゴy.」 If the scheme takes the form of a Stock Compネット ビンゴy, it is called ネット ビンゴ “Investment Compネット ビンゴy.」 Additionally, there are no collective investment schemes in the form of just a partnership.

The Capital Markets Act also classifies compネット ビンゴies such as securities finネット ビンゴce compネット ビンゴies, credit rating compネット ビンゴies, fund brokerage compネット ビンゴies, ネット ビンゴd short-term finネット ビンゴce compネット ビンゴies. These classifications do not refer to compネット ビンゴy types. In fact, the first three are all Stock Compネット ビンゴies, ネット ビンゴd the last one is a bネット ビンゴk (or finネット ビンゴcial institution). These designations indicate that the compネット ビンゴies have acquired the relevネット ビンゴt permits or authorizations from competent government bodies or agencies, such as the Finネット ビンゴcial Supervisory Service, to engage in their respective businesses.

These designations may initially seem confusing ネット ビンゴd numerous. However, once familiar with them, it becomes easier to understネット ビンゴd their corporate nature ネット ビンゴd, in certain cases, the business they engage in.

If you are considering establishing a local compネット ビンゴy in Korea ネット ビンゴd would like to learn further details ネット ビンゴd characteristics of diverse corporate structures in Korea, feel free to contact us via email at inpyeong@inpyeonglaw.com or by phone at +82.
End.