Fair Trade Commission exempts companies from having the same leader in case of meeting ‘exceptional conditions’.

[
“\n”,
“

\n

\n\n

\n

Fair Trade Commission. Yonhap News“,
” “,
“
“,
” “,
“
“,
“[Financial News] Even in the future, if there is a de facto leader dominating a corporate group, it is possible to avoid the designation of same owner if specific ‘exceptional conditions’ are met.”,
” “,
“
“,
“The Fair Trade Commission announced on the 7th that the amendment to the ‘Monopoly Regulation and Fair Trade Act’ enforcement decree, which establishes criteria to rationally determine the same owner when designating a large corporate group, has passed through the State Council.”,
” “,
“
“,
“The same owner is the criterion that determines the scope of a corporate group and the target of regulation of large corporations. The Fair Trade Commission manages and supervises companies that are effectively controlled by the same owner as one corporate group.”,
” “,
“
“,
“Although the current Monopoly Regulation and Fair Trade Act does not specifically stipulate the definition of the same owner, the Fair Trade Commission has been designating the same owner based on ‘substantial control’.”,
” “,
“
“,
“With the amendment this time, an ‘exceptional condition’ has been established to avoid the designation of the same owner.”,
” “,
“
“,
“The amendment maintains the general principle of designating a natural person as the same owner in the corporate group that effectively dominates them.”,
” “,
“
“,
“However, the amendment allows corporations to be deemed as the same owner, regardless of whether the same owner is considered a natural person or a corporation, as long as the scope of the corporate group is the same, the natural person effectively controlling the corporate group does not have investments in domestic affiliate companies excluding the top company, the natural person and their relatives do not participate in management by investing in or serving as executives of domestic affiliate companies, and there are no mutual guarantees or loans between the natural person and their relatives and domestic affiliate companies.”,
” “,
“
“,
“If all four ‘exceptional conditions’ are met, even if there is a de facto leader dominating a corporate group, it is possible to avoid the designation of the same owner.”,
” “,
“
“,
“If a corporate group designated with a domestic company or non-profit corporation as the same owner fails to meet these requirements, the basis for changing the designation back to a natural person as the same owner has been prepared.”,
” “,
“
“,
“The Fair Trade Commission stated, \”While preserving the basic purpose of the same owner system, we have formalized the criteria for determining the same owner that can be generally applied to all violators without discrimination based on nationality, which will increase objectivity, transparency, and predictability in determining the same owner.\””,
” “,
“
“,
“Kim Beom-seok, Chairman of Coupang, who was the starting point of discussions for system improvements, is expected to avoid the designation of the same owner even after the implementation of the amendment.”,
” “,
“
“,
“The amendment to the Fair Trade Act enforcement decree, which passed through the State Council on that day, is expected to be promulgated by the President and take effect immediately.\n”
]