I would like to ask a corporate finance specialized attorney about funding.

Hello. A corporate finance specialized attorney will answer.

There are various ways for a company to raise funds, and the legal procedures and considerations required for each method differ.

First, raising funds through a capital increase (issuance of new shares) requires a board resolution (in the case of unlisted stock companies) based on the Commercial Act and the company's articles of incorporation.

Depending on the method of issuing new shares (paid-in capital increase, third-party allocation, shareholder allocation, etc.), disclosure, payment, and registration procedures are required.

In particular, in the case of third-party allocation, fair procedures and purposes must be recognized under the Capital Markets Act, and whether existing shareholders' preemptive rights are infringed must also be reviewed.

When issuing corporate bonds, the total amount of bonds, interest rates, maturity, collateral, and trust contract conclusion are major considerations. For public bonds, a securities report must be submitted to the Financial Supervisory Service, and even for private bonds, if certain requirements are not met, it may be judged as illegal public offering, so caution is required.

Investment contracts concluded when attracting investors such as venture capital should include the following: equity ratio and investment amount, redemption and conversion conditions, preferred stock conditions, voting rights restrictions, protective provisions (e.g., preemptive purchase rights, tag-along rights, conditions upon listing, etc.), and shareholder agreement matters (ROFR, Tag-along, Drag-along, etc.).

To prevent future disputes, please proceed systematically with the help of a corporate finance specialized attorney.