Advisor Woo-Sung Bae of Dentons Lee delivered a lecture at the breakfast conference of the Korea Display Industry Association (KDIA) on the 14th of April under the theme of “checkpoints for Korean display companies to enter Chinese market.” The event was attended by CEOs of 45 domestic display-related companies. Bae emphasized that companies must prioritize establishing a legal strategy that takes into account the characteristics of local government and local lawyers in order to advance into China.

Woo-Sung Bae said that “although the local government continues to actively attract investors to come in, careful attention is required.” He added, “when you actually proceed with entering into the Chinese market through partnership, joint venture or rather individually, you could easily be tempted by Chinese government’s aggressive offer to give you some preferential measures or even partial direct investment but you should know that there will be a series of obstacles waiting for you when you actually start establishing a corporation there.”

Bae explained that “since most part of the investment and market entrance process is going on in China, you have no other option but to look for local lawyers. When working with them, you must take control of one group by using another while giving them proper incentives. You have to prepare appropriate guidelines in advance which work favorable to South Korean companies and within such scope, you have to let the Chinese compete with each other or make them forge mutual negotiations. And this is all for laying out the structure which could bring us advantageous outcomes in the end.”

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