DEAL EXECUTION · SOLUTION PAGE
What should Korea and China partners decide first when forming a JV?
SR ANSWER
Before equity percentages, define contribution, market, IP, funding, operating responsibility, control, follow-on investment, exit and deadlock.
NEXT EXECUTION
Define deal objective & terms
Build long/short list
Verify authority, funding & interests
NDA, meetings & diligence
Negotiate terms & next gate
What should Korea and China partners decide first when forming a JV?
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FAQ
Is a 50:50 JV structure always best?
No. Equity should follow real contribution, control, follow-on funding obligations and a workable deadlock mechanism rather than symmetry alone.
Should technology or brand IP be transferred into the JV?
Not necessarily. Ownership transfer, licensing and territory or time-limited rights should be compared so core IP is not assigned more broadly than necessary.
Who should hold management control?
Control should be defined through board composition, representative appointment, budget, hiring, contracting approvals and reserved matters—not equity percentage alone.
Can deadlock scenarios be designed in advance?
Yes. The agreement should define the deadlock trigger, negotiation period, mediation or arbitration, buy-sell mechanisms and possible exit routes.
Can we establish the entity first and negotiate the details later?
That is usually risky. Core contribution, market, IP, funding, operating responsibility and decision principles should be agreed before incorporation.