Fair Trade Law Q&A - Merger

Pursuant to Article 8 of the Enforcement Rules of the Fair Trade Act, where a merger meets the notification thresholds set forth in Article 11 of the Fair Trade Act, the following enterprises shall be obligated to file with the competent authority:

1. the enterprises participating in the merger, where an enterprise merged with another, jointly operates on regular basis with another, or is commissioned by another enterprise to run operations;
2. the enterprise that holds or acquires the shares or capital contributions of another enterprise. However, it shall be the enterprise with ultimate control if there are control or affiliation relations between the holding or acquiring enterprises, or the holding or acquiring enterprises are controlled by the same enterprise or a group of enterprises.
3. the enterprise that is assigned by or leases from another enterprise(s) the operations or assets of another,
4. IV. the controlling enterprise, where an enterprise directly or indirectly controls the business operations or the appointment or discharge of personnel of another enterprise.

If an enterprise required to file a merger has not yet been established, the existing enterprises participating in the merger shall file. Financial holdings companies shall file with the competent authority if the companies or any subsidiaries in which the companies have controlling interest as specified in the Financial Holding Company Act participate in the merger.