YOON&YANG

Gwangju Metropolitan City and Hyundai Motor Company signed a joint venture deal to establish an automobile manufacturing company, Gwangju Global Motors in Gwangju, Korea to vitalize local economy and to create local jobs.

Yoon & Yang provided comprehensive legal services for Gwangju Metropolitan City and Hyundai Motor Company in connection with the joint venture establishment, including preparation of relevant agreements (i.e., articles of corporation and shareholders agreement), negotiation with the investors, administrative procedure for establishment of joint venture, and preparation for closing.

The total investment of the project is KRW 211 billion (USD 177 million) and the establishment of the joint venture has been successfully closed on September 20, 2019.

This case is significant in that it is the public-private joint venture case, in which the local government (Gwangju Metropolitan City) and the global automaker in South Korea (Hyundai Motor Company) established and operated a joint venture. In addition, it is meaningful in that the project was aimed at boosting the local economy and job creation.