Shin & Kim represented CJ Foodville in its joint venture with SUNLON, a Chinese state corporation, entered into on August 8, 2012 in relation to the entry of its VIPS restaurant into the Chinese market. Under the joint venture agreement, the parties agreed to establish a joint venture in Beijing, China, and then run VIPS restaurants in the Huabei (Northern China) area through the joint venture. It was agreed that CJ Foodville will be in charge of overall operations of the joint venture. CJ Foodville also entered into a franchise agreement with the joint venture to allow it to use the VIPS brand on terms and conditions agreed at the time of execution of the joint venture agreement. VIPS is a well-known Korean family-restaurant brand independently developed and launched by CJ Foodville in 1997. The joint venture agreement with SUNLON marks the beginning of CJ Foodville’s full-fledged operation of its VIPS-branded restaurant business in China.
As legal counsel for CJ Foodville in this meaningful joint-venture, the China Division of Shin & Kim advised CJ Foodville with its negotiations of the joint venture, execution of the joint venture agreement and franchise agreement and with respect to the franchise business generally. Attorney Yong-Won Choi at Shin & Kim’s Beijing Office and Attorney Jung-Jae Won at its Shanghai Office led the China Division in this transaction.
Shin & Kim’s China Division has to date participated in a wide variety of transactions related to Korean companies’ investments in China. In particular, the China Division has provided its clients with insightful legal advice about joint-venture transactions with Chinese companies based on its extensive experience in such transactions.