Mission Law Firm announced on March 26 that it held a seminar titled “Mission America: M&A Strategies and Success Stories” for Korean companies hoping to enter the U.S. market. The seminar, co-hosted by Mission and BizBen, an online platform for North American small and medium-sized enterprise M&A, was attended by approximately 40 people including domestic startup CEOs, financial advisors, investment and securities firm officials, and public institution officials preparing to enter the U.S. market.
Following the imposition of a 25% tariff on automobiles following steel and aluminum, and the expansion of the tariff scope to semiconductors and pharmaceuticals, the export environment for Korean companies in the North American market is worsening day by day under President Trump’s protectionist policy. The law firm Mission planned the ‘Mission America’ series to suggest alternatives to overcome these trade barriers. This seminar was the first program, and it was a place to discuss in depth the market conquest strategy through mergers and acquisitions (M&A) of local US companies.
In the first session, CFO Cho Jun-sang of Chabot Mobility shared his experience of entering the US market through corporate investment. Chabot Mobility made partial equity investments in small companies with dealers and maintenance networks in the US. CFO Cho explained that the investment in US companies was part of “building a local network to quickly demonstrate Chabot’s capabilities.” He also evaluated that “rather than simply acquiring a company to gain financial benefits, we approached it as a strategic means to reduce trial and error that could occur in the US market, and we achieved sufficient results in that regard.” He also advised that there is no right or wrong way to enter the US market, saying, “Ultimately, we need to consider the company’s circumstances and what kind of strategy we will have to enter the local market.”
In the second session, Joshua Kim, CEO of BizVan, introduced an expansion strategy through the acquisition of a U.S. company based on his know-how in starting a business in various fields. Kim presented the case of Warren Buffett’s investment in See’s Candies and said, “There are still many good businesses in various fields in the U.S. that are worth acquiring.” He said, “Recently, IT, escrow, and AI-related fields are receiving a lot of attention,” and emphasized, “Rather than starting anew, it is more effective to acquire a proven, good company and scale up over 3 to 5 years.” Kim encouraged, “With the principle of BGBG (Buy Good, Build Great), you can acquire a good U.S. company and develop it into a great business.”
Lastly, Attorney Kim Seong-hoon of Mission Law Firm gave a lecture on legal issues that should not be missed when conducting cross-border M&A. Attorney Kim said, “The most difficult part for companies entering the U.S. is the lack of social capital,” and explained, “M&A that acquires local companies that have built brand awareness and social capital is a very effective strategy.” He continued, “M&A requires considerable attention not only during the process but also in post-processing,” and “It is necessary to prepare a plan to align interests through contracts between shareholders, depending on whether the existing management is still employed and whether stock-type performance compensation is provided.” The above session covered in detail practical content such as comparison of the main M&A structures, key due diligence items, visa and investment immigration benefits through M&A, and tax optimization strategies.
Kim Sung-hoon, the head attorney of Mission Law Firm, emphasized, “Although Korean companies are having difficulties due to the recent strengthened U.S. tariff barriers, the U.S. is still an important market that Korean companies cannot withdraw from, considering its size and influence.” He added, “Success in the local market is not only about understanding the laws and systems, but also about social capital consisting of information, trust, and networks.” He added, “I hope that the ‘Mission America’ seminar series will help Korean companies build the social capital they need in the U.S. market along with practical strategies.”
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