A Korean mid-sized company set up a BVI SPC to optimize taxes and attract foreign investors, appointing the same CEO as sole director for both entities. This structure triggered legal concerns under Korean law, as transactions between the two companies constituted self-dealing, and board approvals were legally invalid. Cha & Kwon Law Offices advised obtaining special shareholder resolutions to legitimize such transactions and supported proper documentation. To address transfer pricing risks, the firm recommended preparing arm’s length reports and revising agreements. They also mitigated potential fiduciary liability by ensuring all transactions served each company’s best interests.

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