On September 23, the Korea Fair Trade Commission conveyed to the industry that it would "review merger filings as quickly as possible, taking into account the urgency of restructuring" when petrochemical companies report mergers for business restructuring.
That afternoon, the Fair Trade Commission held an on-site meeting with ten major petrochemical companies at the Korea Fair Trade Mediation Agency in Seoul to discuss the review process for corporate mergers. This meeting was organized in anticipation that business restructuring plans, which are to be submitted by the end of the year following the voluntary agreement signed by petrochemical companies on August 20, will likely involve methods such as establishing joint ventures.
The Commission expressed its understanding of the need for restructuring in the petrochemical industry and stated that it would prioritize its review resources for companies that are making swift self-rescue efforts, aiming to resolve uncertainties at an early stage. However, it emphasized that active cooperation from companies is necessary for expedited reviews, as the petrochemical industry is closely linked with other sectors and has a significant impact on the national economy, requiring thorough examination of competition, product characteristics, and transaction structures.
The Commission also requested that companies actively utilize the "pre-consultation" system, which allows for discussion of the scope of materials to be submitted before a merger filing, as well as the "voluntary pre-review" system, which enables an assessment of potential anti-competitive effects before signing the main contract.
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