If an appropriate remedy to alleviate competition concerns during a merger is submitted to the competition authority, the review and resolution period for the merger will be shortened. The limit for summary procedures in fine cases will also be increased from 100 million KRW to 300 million KRW.
On the 7th, the Korea Fair Trade Commission (KFTC) announced the implementation of the amended "Rules on the Operation of KFTC Meetings and Case Procedures," which include these provisions.
First, when utilizing the newly implemented ‘Submission System for Remedies in Mergers’ effective from this day, the relevant merger case will be reviewed and resolved promptly. If the merging company submits an appropriate remedy to alleviate competition concerns and accepts all contents, including the action opinions in the review report, it must notify the KFTC of its acceptance intention. Then, the review must be held within 15 days, and the resolution document must be prepared within 20 days after agreement.
The scope of merger cases that can be reviewed by a subcommittee has also been expanded. Even if the merger involves a 'large company' with total assets or sales of 2 trillion KRW or more, if the transaction amount is less than 600 billion KRW, the case can be handled by the subcommittee instead of the plenary meeting.
Additionally, the expected fine amount eligible for summary resolution requests has been expanded from 'up to 100 million KRW' to 'up to 300 million KRW.' The summary procedure is a process where, if the business operator accepts the alleged facts and action opinions in the review report, the KFTC promptly resolves the case through written examination without a formal trial.
If business operators agree to the summary procedure and accept the fine decided in the summary review, they can receive an additional 10% reduction of the fine amount.
The KFTC stated, "Through this amendment to the case rules, the handling of KFTC cases will become more efficient, and the convenience of businesses and filers will be enhanced."
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