후원로펌 뉴스레터

본문 바로가기

HOME > 후원로펌 현황 > 후원로펌 뉴스레터

후원로펌 현황

[법무법인(유) 세종] MERGER CONTROL IN KOREA Vol. 05 - Details of New “Size-of-Transaction” Test Effective December 30, 2021

페이지 정보

작성자 작성일21-06-11 15:09 조회13회 댓글0건

본문

 
 logo 
 
 

MERGER CONTROL IN KOREA Vol. 05

- Details of New “Size-of-Transaction” Test Effective December 30, 2021

 
June 8, 2021
 This is an update to Merger Control in Korea Vol. 02 - Introduction of New “Size-of-Transaction” Test Confirmed issued on December 14, 2020.

On June 3, 2021, the Korea Fair Trade Commission (the “KFTC”) announced the proposed amendment to the Enforcement Decree of the Monopoly Regulation and Fair Trade Act (the “Amended Enforcement Decree”). The Amended Enforcement Decree provides further details and guidelines on the Monopoly Regulation and Fair Trade Act which was amended last December (the “Amended MRFTA”).

The Amended MRFTA introduced a new size-of-transaction test which will apply in addition to the existing size-of-parties test. The new size-of-transaction test consists of (i) the transaction value test and (ii) the Korean activities test. The Amended Enforcement Decree provides the specific thresholds for these tests.
 
 Under the Amended Enforcement Decree, a merger notification would be required with respect to a transaction if (i) the transaction value is KRW 600 billion (approximately USD 540 million/EUR 442 million) or more and (ii) (x) the target has sold or provided products or services to at least 1 million people per month in the Korean market during the immediately preceding three years; (y) the target has either leased research and development facilities or used R&D personnel in Korea and has had an annual R&D budget of at least KRW 30 billion (approximately USD 27 million/EUR 22 million) for the Korean market during the immediately preceding three years; or (z) the transaction involves facts that are in effect equivalent to (x) or (y), the details of which are to be announced by the KFTC .

The new size-of-transaction-based thresholds are significant in that the acquisition of a target which does not yet have significant assets or turnover (e.g., killer acquisitions involving smaller but promising start-ups in various industries, including ICT and pharmaceutical) could be caught under the new Korean merger control if the transaction satisfies the foregoing thresholds. Please note that the Korean nexus test (i.e., requiring each of the parties to a foreign-to-foreign merger to have an annual Korean turnover of at least KRW 30 billion), which was a part of the size-of-parties test, does not apply to the new size-of-transaction test.
 
 The new thresholds will go into effect on December 30, 2021 and will apply to all transactions executed after that date in the case of pre-merger filing (which is required if either party has worldwide assets or annual turnover of at least KRW 2 trillion) and all transactions whose closing date falls after that date in the case of post-merger filing.

The KFTC may issue additional KFTC announcements regarding the matters which are the subject of the Amended Enforcement Decree as well as guidelines on the specific meaning of each element of the size-of-transaction test. We will closely monitor the development and provide another update.

We will continue providing updates on Korean merger control issues. Please feel free to contact us anytime should you have any questions concerning Korean merger control.
 
 
 
For Questions or Comments
 
 
Young Chul YimSenior Partner
 
JY (Jooyoung) ParkSenior Foreign Attorney
 
John H. ChoiSenior Foreign Attorney
 
Sangdon LeePartner
 
Hyunah KimSenior Foreign Attorney
 
 
 
 
 
 Title Title Title Title 
 

댓글목록

등록된 댓글이 없습니다.

후원로펌 뉴스레터 목록
번호 제목 글쓴이 날짜 조회
668 [법무법인(유) 세종] ESG 지표의 진화와 대응 - 기업지배구조 KCGS ESG 모범규준 개정(안)을 중심으로 – 2021-06-11 10
667 [법무법인(유) 세종] CISO 지정·신고제도 관련 정보통신망법 개정과 시사점 2021-06-11 10
열람중 [법무법인(유) 세종] MERGER CONTROL IN KOREA Vol. 05 - Details of New “Size-of-Transaction” Test Effective December 30, 2021 2021-06-11 14
665 [법무법인(유) 세종] 사건절차 규칙 및 동의의결 규칙의 개정과 시사점 2021-06-11 49
664 [법무법인(유) 세종] Policy and Law Report_Vol.88 -정부 주요 정책 및 입법정보 등에 관한 동향: 2021.5.31 ~ 6.6 - 2021-06-11 8
663 [법무법인(유) 화우] 개인정보위, 인공지능(AI) 개인정보보호 자율점검표 발표 첨부파일 2021-06-11 65
662 [법무법인(유) 화우] 공공재개발∙재건축의 도입 첨부파일 2021-06-11 38
661 [법무법인(유) 화우] 담합 2순위 자진신고자, 조사에 기여한 만큼 감면받는다! 첨부파일 2021-06-11 5
660 [법무법인(유) 광장] 정보보호 최고책임자(CISO) 및 정보보호 공시 제도의 변경 시행 첨부파일 2021-06-10 12
659 [법무법인(유) 광장] 「ESG 모범규준」 개정안의 주요 내용 및 공청회 논의 사항 첨부파일 2021-06-09 41
658 [부스러기사랑나눔회] #제29회 글그림잔치, #반짝이는 나의 어제, 오늘, 내일 관리자 2021-06-08 12
657 [법무법인(유) 광장] 『광장 ESG Focus』 EU의 ESG 규제 주요 내용과 시사점 2021-06-07 5
656 [법무법인(유) 세종] Policy and Law Report_Vol.87: 정부 주요 정책 및 입법정보 등에 관한 동향: 2021. 5.24 ~ 5.31 2021-06-04 10
655 [법무법인(유) 세종] Policy and Law Report_Vol.86: 정부 주요 정책 및 입법정보 등에 관한 동향: 2021. 5.17 ~ 5.23 2021-06-04 9
654 [법무법인(유) 세종] 공정거래 소식지 2021-06-04 11
게시물 검색

사단법인 인하우스카운슬포럼 In-House Counsel Forum

주소 : 서울시 강남구 테헤란로 625, 17층 | 고유번호 : 107-82-14795

E-mail : reps@ihcf.co.kr

Copyright(C) IHCF KOREA. ALL RIGHTS RESERVED.

모바일 버전으로 보기