The export voucher project was initiated to remove barriers between the various export support programs offered by the different government agencies and to help small and medium-sized enterprises (SMEs) freely select export support programs suitable for their export capacity, and is offered in the form of vouchers [as of 2023, the program had a budget of KRW 166.8 billion (KRW 47.1 billion from MOTIE and KRW 119.7 billion from the Ministry of SMEs), with a cumulative total of 30,000 participating companies]. ClassHankyul applied for and was selected in 2020 for participation as a provider of legal consulting services for businesses entering overseas markets, was re-selected after the evaluations conducted in 2022, and has entered into an extension agreement.
The following is an introduction on the Guidebook, questions and answers during the interview, and where the material is distributed (download).
Ⅰ. Guidebook
1. Material Name: Guidebook on Export Voucher Services Providers and Consulting Services
2. Subjects: Investigative and general consulting, brand development and management, legal, tax, and accounting consulting
3. Date of Publication: May 2023
4. Publisher: Korean Standards Association
5. Overview
(1) Opening the Way for Exports (Overview of Export Voucher Project)
(2) Connecting Exports and Exporters (Overall Manager of Export Voucher Project)
(3) Help on the Road to Exports (Exemplar Cases)
(4) Let’s Export Together, Hand in Hand (Agency Introduction)
Ⅱ. Distributor (for Download)
2023 Guidebook on Export Voucher Services Providers and Consulting Services
1. Export Voucher Program (https://www.exportvoucher.com/portal/sample/main)
2. Community > Materials > No. 54
Ⅲ. Key Questions & Answers in Interview Published in Guidebook
1. Introduction to Practicing Attorneys
Practicing attorneys with a wealth of international business experience
At ClassHankyul, the Export Voucher Project is managed by the following attorneys: Jehyuk Lee (JTRI Class 31, 22 years of experience as an attorney), a longtime expert in international arbitration and international finance, including a case involving maritime wind power generation in Germany; Sangwon Yoon (JTRI Class 41, 12 years of experience as an attorney), who consults clients on out-bound (entering overseas markets) and in-bound (entering the Korean market) investments and procedures; and Soo-in Yoon, a graduate of Waseda University of Japan and an attorney licensed in Florida with 12 years of experience, who advises clients on out-bound and in-bound investments and intellectual property license agreements.
2. Unique Strengths of ClassHankyul
One Stop Service on All Aspects of Overseas Market Engagement
ClassHankyul has been advising clients on markets in the U.S., Europe, Australia, China, Japan, Southeast Asia, and other regions, as well as on conducting business in Korea. Services provided include establishment and investment in domestic and foreign joint ventures, review of suitable investment schemes and methods, preparation of various contracts required for operating the business and legal review of such contracts, recovery of investment, taxation, resolution of disputes and claims overseas, and other processes incidental to foreign investment and attracting investment to Korea.
3. ClassHankyul’s Competitive Edge on Exports
International network - Hankyul’s de facto overseas offices
ClassHankyul is distinguished in its robust international network. A member of a global network of law firms, ClassHankyul is able to maintain an effective business network with major law firms around the world, enabling the provision of speedy and reliable services.
ClassHankyul is currently a member of Ally Law, a global network of 74 independent law firms and approximately 2,800 experts. Members of Ally Law are native to their countries of origin whose expertise, reliability and efficiency have been well established as attested by their high ratings from Chambers & Partners, a research firm known for its rankings for the global legal industry. ClassHankyul has also previously participated as a member of First Law International since its early days in 2003 and served as a member of the organization’s FLI Operating Commission for approximately 10 years from 2008.
ClassHankyul’s membership in global networks of law firms helps it enjoy the effect of having de facto overseas offices through partnerships with other members, giving it the capacity to provide clients with the international services they need.
4. Most In-Demand Area of Consulting Services
Advisory services for overseas entities throughout their lifecycles, from establishment to dissolution
Past experience has shown joint venture services to be most in demand. In the case of a joint venture, an overall framework spanning its entire lifecycle is usually conceived in the early stages. A number of issues are determined early on, including the stability of the joint venture’s operation, exit strategies, and intellectual property protections provided by the local partner for the venture.
ClassHankyul draws on a rich reserve of experience and know-how in the establishment, operation, and dissolution of overseas entities to advise clients not only on establishing a venture but also on business operation, recovery of investment, protection of intellectual property, and other potentially relevant issues and scenarios to reduce legal risks and ensure the present and future success of the enterprise over a long period of time.
5. A Case on Point: An Astounding Success Story
A case notable for its success involved Company H’s establishment of a U.S. entity in 2021. A provider of remote healthcare services, the company had decided to establish a U.S. subsidiary to establish a presence there, but no specific plans had been drawn, and deciding the very basics of such a scheme was proving to be a challenge.
To assist the client, ClassHankyul engaged in close cooperation with its local partners in the United States and provided advice on the structure of the establishment and underwent the required local procedures. ClassHankyul was able to successfully file a foreign direct investment report in Korea, and by introducing a consultancy specializing in such matters, was able to provide a solution for the visa issues facing the client’s Korean executives dispatched to its U.S. office. Company H’s entry in the U.S. market was made possible through the reliable support it received from ClassHankyul.
6. Most Important Element of Preparation for Participating Companies Seeking to Begin or Increase Exports
Always be aware of the possibility of disputes when entering overseas markets
Most companies focus only on expanding their market share and how to operate their business when making their forays into foreign markets, and often overlook matters such as securing returns on the investment, possibility of dispute and dissolution.
From a business perspective, accepting a local counterparty’s terms and conditions without a careful examination due to rosy prospects may result in a situation where the business operation itself is successful, but the rightful returns cannot be secured, or worse, damages are borne. Once a dispute occurs, most of the proceedings take place locally, resulting in the loss of initiative and consequent disadvantage. Often, the prohibitive legal costs compel a party to give up its fight.
Preemptive measures are a must to prevent dispute
As such, the most important element of the preparation that a company seeking to enter foreign markets must undertake is to incorporate preemptive measures against disputes into the relevant contracts at an early stage, in order to eliminate such legal risks.
Of increasing importance for Korean companies are intangible assets, such as technical patents, trademarks, copyrights and business secrets. Constituting much of the forte enjoyed by Korean businesses, such assets’ exposure to legal risks may result in damages beyond monetary proportions and may well prove to be irrecoverable. As such, measures for protection against legal risks are rightly even more emphasized in the area of intellectual property.
Importance of planning in advance
Here, one thing that should not escape attention is the importance of planning in advance. Factors such as the size of the investment, type of the entity to be established, number of directors, local executives, issuance of shares, and other elements of the operation must be determined in advance. Such advance planning will ensure effective legal consulting and save much time and money in the process.
7. Tips for Participating Companies Planning to Benefit from Export Voucher Project
Foreign law firm fees can be paid from export vouchers
Previously, foreign law firm fees arising in the process of establishing a joint venture overseas could be paid out of export vouchers, causing difficulties (only fees for Korean agencies could be paid out of export vouchers), but it has been recently confirmed with the Korea Standards Association, the competent authority, that agents may accept cases in a turnkey (one-stop) arrangement and directly transfer a portion of their contract amount to foreign law firms working with them.
As this allows participating companies to engage advisory services at a much lower cost, prospective clients are encouraged to take advantage of this arrangement. Indeed, a recent case involving the establishment of a joint venture in Saudi Arabia was handled using a turnkey arrangement.
