[Interview] 'World Captivated by K-Culture'... Kim Jungho, French Lawyer, "Hallyu Export Companies Must Know Administrative and Legal Information"

Procedure, Information, and Competitiveness Are the Essence of Success... Korean Products and Services Show Excellent Competitiveness
Government and Local Governments Need Economic Support Systems for Overseas Expansion
Gyeonggi-do Plans to Support Local Companies' Entry into the French Market

Attorney Kim Jung-ho (Attorney in France and New York State, USA · Legal Advisor to the Korean Embassy in France · President of the Paris Korea-France Chamber of Commerce) [Photo by Ra Young-chul]

[Asia Economy Reporter Ra Young-cheol] Attorney Kim Jung-ho (France·New York State Attorney, USA·Legal Advisor to the Korean Embassy in France·President of the Paris Korea-France Chamber of Commerce) emphasized in a recent interview ahead of his attendance at the '2022 France Market Entry and Investment Legal Seminar' held in Seoul that "administrative procedures and legal information are essential factors for the business success of Korean corporations or individuals conducting commercial activities in France."

Attorney Kim testified, "I have often seen export companies entering the global market, especially those venturing into France, completely unaware of what to do."

The fundamental reason he cited is the very limited provision of specific guidance and information on legal matters and risk prevention related to entering the French market.

At the same time, he stressed that various institutions, including the Korean government and local governments, should provide related information to export companies through diverse methods.

Attorney Kim then explained about the competitiveness of Korean companies.

He said, "Until now, companies have considered Europe as the last destination after entering not only Asian countries but also the Americas."

He added, "Corporate culture and other aspects have mainly focused on the United States, Japan, China, and other Asian countries that we are more familiar with."

He continued, "Although many have experienced confusion when entering Europe, where the culture is quite different, the competitiveness of Koreans and Korean companies is very excellent."

In particular, he emphasized, "In terms of products and services, they stand out even compared to companies from other countries."

Therefore, he reiterated the importance of information by stating, "Understanding the local commercial activity procedures properly is an essential task for the competitiveness and success factors of Korean companies in Europe."

Operating a law firm directly in France, he is the first Korean attorney in France who filed a lawsuit against the French government in 2007 for the return of the Oegyujanggak books.

Below is a Q&A with him.

- The entry barriers for local commercial activities in France are high and complicated. What about entering as a 'corporate business entity' or 'individual business entity'?

"A corporate business entity has an independent legal personality. Assets and liabilities are managed legally and independently from investors or headquarters, making risk management easier. Most enter as corporations, or if there is already a business or corporation in Korea, they establish a liaison office or branch office if it is not an independent corporation. An individual business entity is not recognized as a legal entity. There is no distinction between business assets and personal assets, nor between business risks and personal risks. Therefore, the individual bears the risks (such as debts) arising during the business. Since it is not regarded as a business form when entering overseas, business visas and residence permits must be applied for separately. Individual business entities are not eligible."

- What are the procedures and methods for establishing a local corporation in France?

"Prepare establishment documents (articles of incorporation, power of attorney, mandatory reporting of controlling shareholders, shareholders' meeting resolution for appointing representatives, declarations of no criminal record and no bankruptcy by the representative, proof of capital payment, lease contract for corporate address, etc.), and go through the mandatory registration procedures at the registry office. If there are no defects in the documents, registration is completed in about a week, and a registration certificate ('KBIS') is issued. In France, there are many difficulties in remitting the establishment capital from Korea. Commercial banks are often unfamiliar with overseas remittances or remittances for overseas corporation establishment capital (which requires overseas investment reporting), causing long delays in capital remittance. Therefore, a bank account to receive capital in France must be opened in advance. If you cannot communicate in French, it is difficult to open a capital payment account."

- What industries are most common among individual and corporate business entities entering France?

"Most enter as corporations. Whether individual or corporate, it is not significantly related to products or services. Recently, online internet businesses by the MZ generation are most prominent. They mainly purchase French products to export to Korea or sell online. Cosmetics, fashion accessories, health supplements, interior items, and wine make up the majority."

- What support do the Korean government and local governments provide for companies entering France?

"Basic knowledge and information about entry methods (corporation, office, branch, etc.), corporation establishment procedures, and strict French labor laws when hiring locally must be provided. This includes preparing French investment guidelines and providing basic information through dedicated teams (including online internet information). Since materials available online are in French, information written in Korean is necessary. Overseas investment and entry through corporation establishment impose economic burdens on startups and SMEs, so related institutions and local governments should expand cost support systems to assist overseas entry and provide information regularly through seminars related to French investment."

■ 'Made in Korea' Captivating the World

Recently, the recognition of 'K-fashion,' 'K-culture,' and 'K-content' has been rapidly rising in Europe.

In Paris, France, the global fashion capital, the popularity of 'K-pop' has fueled a 'K-fashion' craze. Creative and innovative 'K-fashion' is captivating global fashion metropolises such as Paris.

During 'Paris Fashion Week,' stage costumes of Korean idols were exhibited. Korean fashion is recognized for its fresh designs that resonate with global tastes.

'Seoul Fashion Week' is evolving into a platform where domestic designers grow into global brands.

Seoul City plans to elevate the status of 'Seoul Fashion Week' to become a foothold for overseas expansion of 'K-fashion' by collaborating with 'Paris Trano?,' a global order platform.

Also, 'K-pop' has swept the Billboard charts, and 'K-dramas' and 'movies' have dominated Netflix and screens.

The Ministry of Culture, Sports and Tourism and the Korea Creative Content Agency recorded about $53 million (approximately 75.7 billion KRW) in consultation amounts through the '2022 K-Content Expo in Spain' held for four days from the 4th at Novotel Madrid Center, Spain.

As Hallyu (Korean Wave) spreads actively in France, Gyeonggi Province, which is already exchanging with Germany and Spain, plans to support local companies' entry into France.

Park Geun-gyun, Director of the Foreign Affairs and Trade Division of Gyeonggi Province, stated, "Next year, ahead of operating overseas offices, we plan to conduct a survey to understand the demands of local companies regarding France and Europe as a whole."

Last month, Gyeonggi Province held the '2022 K-Beauty Expo' in Taiwan and Indonesia, achieving export consultations worth 7.293 billion KRW and contract results of 1.723 billion KRW.

Also, in two export consultation meetings specializing in medical and bio products this year, they achieved export consultation results worth $19.4 million between overseas buyers from Vietnam and Russia and SMEs in Gyeonggi Province.

This content was produced with the assistance of AI translation services.