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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

Wholly Amended by Presidential Decree No. 12979, Apr. 14, 1990

Amended by Presidential Decree No. 13842, Feb. 20, 1993

Presidential Decree No. 14566, Apr. 1, 1995

Presidential Decree No. 15328, Mar. 31, 1997

Presidential Decree No. 15569, Dec. 31, 1997

Presidential Decree No. 15767, Apr. 1, 1998

Presidential Decree No. 16221, Mar. 31, 1999

Presidential Decree No. 16430, jun. 30, 1999

Presidential Decree No. 16685, Dec. 31, 1999

Presidential Decree No. 16777, Apr. 1, 2000

Presidential Decree No. 17176, Mar. 27, 2001

Presidential Decree No. 17317, Jul. 24, 2001

Presidential Decree No. 17564, Mar. 30, 2002

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18356, Apr. 1, 2004

Presidential Decree No. 18736, Mar. 8, 2005

Presidential Decree No. 18768, Mar. 31, 2005

Presidential Decree No. 18921, jun. 30, 2005

Presidential Decree No. 18903, jun. 30, 2005

Presidential Decree No. 19023, Aug. 31, 2005

Presidential Decree No. 19422, Mar. 29, 2006

Presidential Decree No. 19447, Apr. 14, 2006

Presidential Decree No. 19574, jun. 29, 2006

Presidential Decree No. 20166, Jul. 13, 2007

Presidential Decree No. 20331, Oct. 23, 2007

Presidential Decree No. 20360, Nov. 2, 2007

Presidential Decree No. 20884, jun. 25, 2008

Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 21148, Dec. 3, 2008

Presidential Decree No. 21480, May 6, 2009

Presidential Decree No. 21492, May 13, 2009

Presidential Decree No. 21626, Jul. 7, 2009

Presidential Decree No. 21765, Oct. 1, 2009

Presidential Decree No. 22003, Jan. 27, 2010

Presidential Decree No. 22151, May 4, 2010

Presidential Decree No. 22160, May 14, 2010

Presidential Decree No. 22467, Nov. 2, 2010

Presidential Decree No. 23475, Dec. 30, 2011

Presidential Decree No. 23527, Jan. 25, 2012

Presidential Decree No. 23864, jun. 19, 2012

Presidential Decree No. 24697, Aug. 27, 2013

Presidential Decree No. 25079, Jan. 14, 2014

Presidential Decree No. 25173, Feb. 11, 2014

Presidential Decree No. 25503, Jul. 21, 2014

Presidential Decree No. 25840, Dec. 9, 2014

Presidential Decree No. 27034, Mar. 8, 2016

Presidential Decree No. 27115, Apr. 29, 2016

Presidential Decree No. 27299, jun. 30, 2016

Presidential Decree No. 27529, Sep. 29, 2016

Presidential Decree No. 27534, Sep. 29, 2016

Presidential Decree No. 27751, Dec. 30, 2016

Presidential Decree No. 28197, Jul. 17, 2017

Presidential Decree No. 28352, Sep. 29, 2017

Presidential Decree No. 28471, Dec. 12, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Monopoly Regulation and Fair Trade Act and other matters necessary to enforce the said Act. <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 18768, Mar. 31, 2005>
 Article 2 (Standards for Holding Company)
(1) "Company total assets of which is not less than or equal to the amount prescribed by Presidential Decree" in the former part of subparagraph 1-2 of Article 2 of the Monopoly Regulation and Fair Trade Act (hereinafter referred to as the "Act") means any of the following companies: <Amended by Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 27529, Sep. 29, 2016>
1. In the case of a company that is newly established in the relevant business year, or has conducted a merge, division, merger through division, or physical division (hereinafter referred to as "division"), it shall be any company whose total assets presented on the balance sheet as of the date of registration of incorporation, the date of registration of merger, or the date of registration of division amount to at least 500 billion won;
2. In the case of a company other than a company, as referred to in subparagraph 1, it shall be any company whose total assets presented on the balance sheet as of the end of the immediately preceding business year (or it shall be the date on which the cause for registration of conversion into a holding company arises, where a report on conversion into a holding company is filed based on the total assets prior to the end of the business year) amount to at least 500 billion won.
(2) Standards for the main business referred to in the latter part of subparagraph 1-2 of Article 2 of the Act mean that the aggregate value (referring to the aggregate of the values presented on the balance sheet as of the date on which the total assets referred to in the subparagraphs of paragraph (1) are calculated) of shares (including equities; hereinafter the same shall apply) that a holding company holds in its subsidiaries is equal to or exceeds 50 percent of the total assets held by the holding company. <Amended by Presidential Decree No. 20360, Nov. 2, 2007>
(3) "Conditions prescribed by Presidential Decree" in subparagraph 1-3 of Article 2 of the Act means satisfying both of the following conditions: <Newly Inserted by Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 25079, Jan. 14, 2014; Presidential Decree No. 27534, Sep. 29, 2016>
1. The company shall be an affiliate of a holding company (excluding an affiliate formed in such a manner that a small and medium start-up business investment company established under the Support for Small and Medium Enterprise Establishment Act or a new technology venture capitalist, as defined in the Specialized Credit Finance Business Act, acquires the shares of another domestic company for making investments in a start-up business or funding a new technology business entity);
2. Shares held by a holding company shall be equal to or exceed the shares held by the largest investor among the persons provided for in subparagraphs 1 and 2 of Article 11.
(4) "Conditions prescribed by Presidential Decree" in subparagraph 1-4 of Article 2 of the Act means satisfying both of the following conditions: <Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007>
1. The company shall be an affiliate of a subsidiary;
2. Shares held by a subsidiary shall be equal to or exceed the shares held by the largest investor among the persons provided for in subparagraphs 1 and 2 of Article 11.
(5) The Fair Trade Commission may examine the appropriateness of the thresholds of the total assets specified in subparagraphs of paragraph (1) every three years, taking into account of such matters as changes in the scale of the national economy, changes in the total assets of companies categorized as holding companies, and differences in the total assets of companies categorized as holding companies, and may take necessary measures, such as adjusting the thresholds of the total assets. <Newly Inserted by Presidential Decree No. 27529, Sep. 29, 2016>
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 2-2 Deleted. <by Presidential Decree No. 20360, Nov. 2, 2007>
 Article 3 (Scope of Business Group)
"Companies the business of which is substantially controlled by the same person according to the criteria prescribed by Presidential Decree" in subparagraph 2 of Article 2 of the Act means the following companies: <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 16777, Apr. 1, 2000; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 27034, Mar. 8, 2016>
1. A company in which the same person, acting alone or together with any of the following persons or entities (hereinafter referred to as "person related to the same person"), holds at least 30 percent of the total number of shares issued by that company (excluding non-voting shares, as provided for in Article 344-3 (1) of the Commercial Act; hereafter the same shall apply in this Article, Articles 3-2, 17-5, 17-8, and 18), as the largest investor of that company:
(a) A spouse, a lineal relative within the sixth degree of consanguinity, or a relative within the fourth degree of affinity (hereinafter referred to as "relative");
(b) A non-profit corporation or organization (referring to an unincorporated association or foundation; hereinafter the same shall apply) in which the same person, acting alone or together with persons related to the same person, has at least 30 percent shareholding out of the total amount of shareholding as the largest contributor, or which either the same person or one of persons related to the same person has established;
(c) A non-profit corporation or organization subject to controlling influence by the same person, directly or through a person related to the same person, with regard to the appointment of executives, business operations, etc.;
(d) A company whose business activities are substantially controlled by the same person as provided for in this subparagraph or subparagraph 2;
(e) An employee of the same person or any person having any of the relationships provided for in items (b) through (d) with the same person (or an executive in the case of a corporation, or a trade employee or employee hired under employment contract in the case of an individual);
2. Any of the following companies that is deemed to exercise controlling influence upon the management of the relevant company:
(a) A company, the representative director of which is appointed or dismissed by, or at least 50 percent of executives of which has been or can be appointed by the same person under contract or agreement with other major shareholders;
(b) A company subject to controlling influence by the same person, directly or through a person related to the same person, with respect major decision-makings or business execution, such as reorganization of the relevant company and investments in new business;
(c) A company that exchanges its personnel exchanges with the relevant company and a company controlled by the same person (including the same person, where the same person is a company; hereafter the same shall apply in this item) in any of the following manners:
(i) Where an executive holds concurrent offices in the relevant company and the company controlled by the same person;
(ii) Where an executive or employee of the company controlled by the same person is reinstated in such position after having been appointed as an executive of the relevant company (including where such executive or employee is reinstated to another company controlled by the same person);
(iii) Where an executive of the relevant company is reinstated in such position of the relevant company or its affiliate after having been appointed as an executive or employee of the company controlled by the same person;
(d) A company that makes transactions of funds, assets, goods, services, etc. with the same person or a person related to the same person company, or that gives and takes debt guarantees to or from the same person or a person related to the same person company in excess of the ordinary scale, or any other company recognized as an economic entity identified with the same person according to social norms since the company conducts its business in a way that it can be considered as an affiliate of the business group of the same person.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 3-2 (Exclusion from Business Group)
(1) Notwithstanding Article 3, the Fair Trade Commission may, at the request of any interested party, exclude any of the following companies from the scope of a business group controlled by the same person, if the same person is deemed to be not controlling the business activities of the company: <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17317, Jul. 24, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 19422, Mar. 29, 2006; Presidential Decree No. 19447, Apr. 14, 2006; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 28197, Jul. 17, 2017>
1. A company that is substantially managed by a person, other than the following persons, under agreement or contract between investors:
(a) A person appointed by the same person;
(b) A person who has any of the relationships provided for in subparagraph 1 (a) or (e) of Article 3 with the same person;
2. A company that satisfies all of the following conditions (hereinafter referred to as "criteria for the recognition of independent management"), and is recognized as managed independently by a relative of the same person:
(a) The aggregate of shares of each company requesting an exclusion from a business group controlled by the same person (hereinafter referred to as "affiliate of the relative"), which are held by the same person and persons related to the same person [excluding a person who independently manages the affiliate of the relative (hereinafter referred to as "independent manager") and a person whom the Fair Trade Commission recognizes, at the request of an independent manager, excluded from the scope of persons related to the same person] shall be less than 3 percent (or 10 percent in the case of a company that is not a listed-stock corporation, as defined in Article 9 (15) 3 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "listed corporation")) of the total number of shares issued by each company;
(b) The aggregate of shares of each company controlled by the same person (referring to one of member companies of a business group controlled by the same person, excluding affiliates of relatives; hereinafter referred to as "affiliate of the same person"), which are held by independent managers and persons having any of the relationships provided for in the items of subparagraph 1 of Article 3 with the independent managers (limited to a person excluded from such scope as provided for in item (a), in the case of persons related to the same person) shall be less than 3 percent (or 15 percent in the case of a company that is not a listed corporation) of the total number of shares issued by each company;
(c) No executive officer shall hold concurrent offices in any affiliate of the same person and any affiliate of the relative;
(d) There shall be no debt guarantee or loan between any affiliate of the same person and any affiliate of the relative: Provided, That this shall not apply to any debt guarantee prescribed in subparagraph 1 of Article 10-2 of the Act, or any debt guarantee or loan that is considered to have been provided ordinarily in the course of making a transaction;
(e) Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
3. A company taking bankruptcy procedures after having been declared bankrupt under the Debtor Rehabilitation and Bankruptcy Act;
4. A company corresponding to a company concluded a contract for corporate restructuring, as defined in subparagraph 2 of Article 2 of the Corporate Restructuring Investment Companies Act, which satisfies both of the following conditions:
(a) It shall entrust its right to dispose of and exercise voting rights in shares held in excess of 3 percent (or 10 percent in the case of a company that is not a listed corporation) of the total number of shares issued by the relevant company among shares held by the same person and persons related to the same person to creditor financial institutions (referring to financial institutions established under the Banking Act and other Acts, which have provided credits to the relevant company);
(b) The same person and persons related to the same person shall conclude a special agreement waiving the right to terminate the entrustment contract under item (a);
5. A company taking rehabilitation procedures according to a decision on commencing the rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act, which satisfies both the following conditions:
(a) It shall entrust its right to dispose of and exercise voting rights in shares held in excess of 3 percent (or 10 percent in the case of a company that is not a listed corporation) of the total number of shares issued by the relevant company among shares held by the same person and persons related to the same person to a custodian appointed under Article 74 of the Debtor Rehabilitation and Bankruptcy Act, but shall succeed to such right after the completion of reorganization procedures;
(b) The same person and persons related to the same person shall conclude a special agreement waiving the right to terminate the entrustment contract under item (a).
(2) Notwithstanding Article 3, the Fair Trade Commission may exclude any of the following companies from the scope of a business group controlled by the same person at the request of any interested party: Provided, That a company referred to in subparagraph 2-2 or 4 shall be deemed to be included in the scope of a business group for the purposes of Article 23-2 of the Act: <Amended by Presidential Decree No. 16685, Dec. 31, 1999; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18736, Mar. 8, 2005; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 22160, May 14, 2010; Presidential Decree No. 23527, Jan. 25, 2012; Presidential Decree No. 25173, Feb. 11, 2014; Presidential Decree No. 27034, Mar. 8, 2016>
1. A public-private partnership corporation established under the Act on Public-Private Partnerships in Infrastructure (hereafter referred to as "public-private partnership corporation" in this paragraph), where any of the following entities holds at least 20 percent of the total number of shares issued by the public-private partnership corporation: Provided, That the foregoing shall apply exclusively where that corporation has not any cross shareholding with any other company and has not received any debt guarantee by any person, other than investors:
(a) The State or a local government;
(b) Any public corporation provided for in Article 5 of the Act on the Management of Public Institutions;
(c) Any public corporation or organization or other corporation established pursuant to any special Act;
2. A company in which at least two largest investors exist and do not exercise any controlling influence over the appointment of executive officers, business operations, etc. among the following companies. In such cases, the shares of that company held by the same person or persons related to the same person shall be included for the purposes of calculating the shares held by the largest investors:
(a) A company established by at least two companies that run the same type of business to restructure their business through such manners as investing their assets in kind, a merger, or any other equivalent manner;
(b) A company that implements a public-private partnership project in any of the manners described in subparagraphs 1 through 4 of Article 4 of the Act on Public-Private Partnerships in Infrastructure, among public-private partnership corporations;
2-2. A company provided for in subparagraph 2 (b), which satisfies all of the following conditions: Provided, That the exclusion from the scope of a business group controlled by the same person shall apply only for the period beginning on the date the company is designated as a concessionaire pursuant to Article 13 of the Act on Public-Private Partnerships in Infrastructure and ending before it obtains confirmation of construction completion pursuant to Article 22 (1) of said Act, by completing a project in accordance with the implementation plan publicly notified pursuant to Article 15 (2) of said Act (excluding incidental projects publicly notified pursuant to Article 21 (7) of said Act) with approval from the competent authority pursuant to Article 15 (1) of said Act:
(a) The largest investor in the relevant company shall be deemed to be not exercising controlling influence over the appointment of executive officers, business operations, etc.: In such cases, the shares of the relevant company held by the same person or persons related to the same person shall be included for the purposes of calculating the shares held by the largest investor;
(b) The relevant company (including any company whose business activities are controlled by such company) shall not have invested in a company controlled by the same person (including the same person, where the same person is a company; hereafter the same shall apply in this subparagraph);
(c) No relationship of providing a debt guarantee shall exist between that company (including any company whose business activities are controlled by such company) and a company controlled by the same person: Provided, That the foregoing shall not apply where a company controlled by the same person who has invested in the relevant company (excluding any company whose business activities are controlled by the relevant company) provides a debt guarantee for the relevant company;
(d) Neither a corrective measure (including a recommendation of correction or warning) nor a penalty surcharge shall have been ordered or imposed on the relevant company, the same person (including his/her relatives), or the company controlled by the same person from the Fair Trade Commission due to any violation of Article 23 (1) 7 or (2) of the Act or Article 23-2 (2) of the Act, which is committed between the relevant company (including any company whose business activities are controlled by the relevant company; hereafter the same shall apply in this item) and the same person (including his/her relatives) or between the relevant company and the company controlled by the same person after the date on which the same person or a person related to the same person has satisfied the requirements provided for in Article 3 by acquiring or holding shares of the relevant company;
3. Any of the following companies that is within ten years from the date of registration of establishment and shall not have invested in, or have provided any debt guarantee for a company controlled by the same person (including the same person, where the same person is a company):
(a) A technology holding company based on industry-academia-research cooperation, as defined in subparagraph 8 of Article 2 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act, and a subsidiary, as defined in subparagraph 9 of the same Article;
(b) A company specializing in the start-up of technology-based businesses, as defined in Article 2 (8) of the Act on Special Measures for the Promotion of Venture Businesses, and a subsidiary referred to in Article 11-2 (4) 2 of the same Act;
4. A small or medium enterprise or a venture business provided for in item (a) or (b) (hereafter referred to as "small or medium venture business" in this subparagraph), which satisfies all of the requirements provided for in items (c) through (f):
(a) A small or medium enterprise, the ratio of which annual research and development expenses (referring to the research and development expenses provided for in subparagraph 1 of attached Table 6 of the Enforcement Decree of the Restriction of Special Taxation Act; hereafter the same shall apply in this item) is at least 5 percent of its annual sales among the small and medium enterprises, as defined in Article 2 of the Framework Act on Small and Medium Enterprises. In such cases, the annual sales and annual research and development expenses mean the sales (as presented on the statement of profit or loss) and research and development expenses in the business year immediately preceding the business year in which the date the small or medium enterprise satisfies the requirement provided for in item (c) falls; and where the small or medium enterprise commences business in the business year in which the date it satisfies the requirement provided for in the same item falls, the sales and research and development expenses from the commencement of business to the date on which it satisfies such requirement shall be converted to the annual sales and annual research and development expenses;
(c) The same person or a person related to the same person satisfied the requirements provided for in Article 3 by acquiring or holding the shares of the small or medium venture business under agreement with a person who controls the business activities of such small or medium venture business and seven years have not passed from the date on which the requirements were satisfied;
(d) The small or medium venture business (including a company whose business activities are controlled by the small or medium venture business; hereafter the same shall apply in this subparagraph) shall not have invested in the company controlled by the same person (including the same person, where the same person is a company);
(e) There shall be no relationship of providing a debt guarantee between the small or medium venture business and the company controlled by the same person (including the same person, where the same person is a company);
(f) Neither a corrective measure (including a recommendation of correction or warning) nor a penalty surcharge shall have been ordered or imposed on the small or medium venture business, the same person (including his/her relatives), or the company controlled by the same person from the Fair Trade Commission due to any violation of Article 23 (1) 7 or (2) of the Act or Article 23-2 (2) of the Act, which is committed between the small or medium venture business and the same person (including his/her relatives) or between the small or medium venture business and the company controlled by the same person after the date on which the requirements under item (c) have been satisfied.
(3) Where a company that has been excluded from the scope of a business group controlled by the same person in accordance with paragraph (1) or (2) ceases to satisfy the requirements for exclusion, the Fair Trade Commission, ex officio or at the request of any interested party, may revoke the decision that has excluded the company from the business group: Provided, That the foregoing shall apply to a company that has been excluded from the scope of a business group controlled by the same person in accordance with paragraph (1) 2, only where it ceases to satisfy the requirements for exclusion within three years from the date of exclusion.
(4) Any company that intends to apply for an exclusion from a business group controlled by the same person in accordance with paragraph (1) 2, shall submit the following documents to the Fair Trade Commission. In such cases, the Fair Trade Commission shall verify the corporation registration certificates of affiliates of the same person and affiliates of relatives prescribed in paragraph (1) 2 (c) by sharing the public information pursuant to Article 36 (1) of the Electronic Government Act: <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 22151, May 4, 2010; Presidential Decree No. 22467, Nov. 2, 2010; Presidential Decree No. 27034, Mar. 8, 2016>
1. A register of shareholders in cases falling under paragraph (1) 2 (a) and (b). In such cases, if the relevant company is a corporation whose share certificates have been listed on the securities exchange under Article 176-9 (1) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, a certificate issued by a transfer agent shall be also submitted;
2. Deleted; <by Presidential Decree No. 22467, Nov. 2, 2010>
3. Status of debt guarantees and loans confirmed by a certified public accountant in cases falling under paragraph (1) 2 (d).
(5) A small or medium enterprise provided for in paragraph (2) 4 (a) among companies that intend to apply for an exclusion from a business group controlled by the same person pursuant to the main sentence of paragraph (2) shall submit to the Fair Trade Commission a document confirmed by a certified public accountant about the status of the ratio of its annual research and development expenses to its annual sales, as referred to in paragraph (2) 4 (a). <Newly Inserted by Presidential Decree No. 25173, Feb. 11, 2014>
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 3-3 (Exclusion from Persons Related to Same Person)
(1) Where the Fair Trade Commission deems that the same person or a person related to the same person does not exercise controlling influence over the appointment of executives, business operations, etc. of a non-profit corporation or organization, the Fair Trade Commission may exclude the non-profit corporation or organization from persons related to same person at the request of an interested party, notwithstanding subparagraph 1 (b) of Article 3.
(2) Where a non-profit corporation or organization that has been excluded from persons related to the same person pursuant to paragraph (1) ceases to satisfy the requirements for exclusion, the Fair Trade Commission may revoke the decision that has excluded the non-profit corporation or organization from persons related to the same person, ex officio or at the request of an interested party.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 3-4 (Scope of Domestic Financial Institutions)
"Financial institution prescribed by Presidential Decree" in subparagraph 3-7 (g) of Article 2 of the Act means any of the following financial institutions, the total assets of which presented on the balance sheet as of the end of the immediately preceding business year (in the case of a newly established company that has no balance sheet for the immediately preceding business year, referring to paid-in capital as of the date of its establishment) is at least 300 billion won:
1. A specialized credit finance company under the Specialized Credit Finance Business Act;
2. A mutual savings bank under the Mutual Savings Banks Act.
[This Article Newly Inserted by Presidential Decree No. 28197, Jul. 17, 2017]
 Article 4 (Methods of Calculating Sales or Purchases)
(1) "Annual sales or purchases" in Article 4 of the Act means the amount of goods or services (referring to the amount less indirect taxes imposed on the goods or services; hereinafter the same shall apply) supplied or purchased by a business entity for one business year immediately preceding the business year in which the business entity ends the act suspected of violating Article 3-2 of the Act (if that act continues until the date it is recognized or reported, such act shall be deemed ended on the date it is recognized or reported; hereinafter the same shall apply). <Amended by Presidential Decree No. 20360, Nov. 2, 2007>
(2) "Market share" in subparagraph 7 of Article 2 and Article 4 of the Act means the percentage of the amount of goods or services supplied or purchased by a particular business entity in Korea to the amount of such goods or services supplied or purchased in Korea for one business year immediately preceding the business year in which the particular business entity ended the act suspected of violating Article 3-2 of the Act: Provided, That where it is impracticable to calculate the market share in terms of amount, it may be calculated in terms of quantity or production capacity.
(3) A business entity and its affiliates shall be deemed one business entity for the purposes of subparagraph 7 of Article 2 and Article 4 of the Act.
(4) The Fair Trade Commission may determine and publicly notify detailed criteria for deciding whether a business entity is a market-dominant business entity referred to in subparagraph 7 of Article 2 of the Act.
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 4-2 (Entrustment of Market Structure Surveys or Publication)
(1) The Fair Trade Commission may entrust the head of a relevant administrative agency or the head of a government-funded research institute with its business affairs to survey monopolistic and oligopolistic market structures, to publish the survey findings, and to request relevant data pursuant to Article 3 (5) of the Act.
(2) The head of the agency or the head of the institute entrusted with the business affairs to survey monopolistic and oligopolistic market structures and to publish the survey findings under paragraph (1) shall notify the Fair Trade Commission of how they have performed the entrusted business affairs.
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
CHAPTER II PROHIBITION ON ABUSE OF MARKET-DOMINANT POSITION
 Article 5 (Types of and Criteria for Abusive Practices)
(1) “Unfairly determining, maintaining, or changing the price” in Article 3-2 (1) 1 of the Act means sharply raising or moderately dropping the prices of goods or services without just cause in contrast to changes in their supply and demand, and costs (limited to what is ordinarily required in the same or similar type of business) necessary to supply the goods or services.
(2) “Unfairly controlling the sale of goods or the provision of services” in Article 3-2 (1) 2 of the Act means each of the following acts:
1. Sharply reducing the supply of goods or services without just cause in the light of recent market trends;
2. Reducing the supply of goods or services without just cause despite a short supply in distribution channels.
(3) “Unfairly interfering with the business activities of any other business entity” in Article 3-2 (1) 3 of the Act means hindering the business activities of any other business entity by doing directly or indirectly any of the following acts: <Amended by Presidential Decree No. 17176, Mar. 27, 2001>
1. Interfering with the purchase of raw materials by other business entity for its production activities without just cause;
2. Hiring an employee essential for the business activities of other business entity by providing or promising to provide the employee with excessive economic benefits in the light of normal practices;
3. Denying, interrupting, or limiting use of or access to elements indispensable for other business entity to produce, supply, and sell its goods or services without just cause;
4. Hindering the business activities of other business entities in any unfair manner other than those provided for in subparagraphs 1 through 3, which is publicly notified by the Fair Trade Commission.
(4) “Unfairly interfering with the market entry of a new competitor” in Article 3-2 (1) 4 of the Act means hindering the market entry of a new competitor business entity by doing directly or indirectly any of the following acts: <Amended by Presidential Decree No. 17176, Mar. 27, 2001>
1. Concluding an exclusive transaction contract with a distributor without just cause;
2. Purchasing rights, etc., which are necessary for existing business entities to continue their business activities, without just cause;
3. Denying or limiting use of or access to elements indispensable for a new competitor business entity to produce, supply, and sell its goods or services without just cause;
4. Hindering the market entry of a new competitor business entity in any unfair manner other than those provided for in subparagraphs 1 through 3, which is publicly notified by the Fair Trade Commission.
(5) “Making an unfair transaction to exclude a competitor” in Article 3-2 (1) 5 of the Act shall be any of the following cases:
1. Unfairly supplying or purchasing goods or services at the lower or higher price than the arm’s length price, thereby likely to excluding competitor business entities;
2. Unfairly making a transaction with a transaction partner on the condition that the transaction partner does not make any transaction with a competitor business entity.
(6) The Fair Trade Commission may determine and publicly notify detailed types of and criteria for the abusive practices provided for in paragraphs (1) through (5).
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 6 (Request for Price Surveys)
If there is a reasonable ground to believe that a market-dominant business entity has unfairly determined, maintained, or changed the price of goods or services, the Fair Trade Commission may request the head of the relevant administrative agency or any public institution conducting price surveys to conduct surveys on the price of such goods or services.
 Article 7 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 8 (Method of Publishing Corrective Order Issued)
The Fair Trade Commission shall determine the matters to publish, types and numbers of the media, paper size, etc., taking into account the following matters, to order a business entity [or a business entities' organization in the case of Article 27 of the Act (including members of such organization, if necessary)] to publish the fact that it has been issued a corrective order under Articles 5, 16 (1), 21, 24, 27, and 31 of the Act: <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 16430, Jun. 30, 1999; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17564, Mar. 30, 2002>
1. Details and severity of the violation;
2. Period and frequency of the violation.
 Article 9 (Methods for Calculating Penalty Surcharges)
(1) "Sales prescribed by Presidential Decree" in the main sentences of Articles 6, 22, 24-2 (1), 28 (2), and 31-2 of the Act and "sales prescribed by Presidential Decree" in the main sentence of Article 28 (3) of the Act mean the sales or an equivalent amount (hereinafter referred to as "related sales") earned by a business entity that has committed a violation from selling the goods or services in question in a particular business area during the period for which it has committed the violation: Provided, That the sales mean the purchase price of goods or services, if such violation is related to purchase of the goods or services; and mean the contract price, if such violation is related to bid rigging and other similar act. <Amended by Presidential Decree No. 18356, Apr. 1, 2004; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 23864, Jun. 19, 2012; Presidential Decree No. 25173, Feb. 11, 2014; Presidential Decree No. 27529, Sep. 29, 2016>
(2) "Sales prescribed by Presidential Decree" in the main sentence of Article 24-2 of the Act means the average sales (hereinafter referred to as "average sales") for the three immediately preceding business years of the relevant business entity: Provided, That the sales earned from the commencement of business to the last day of the immediately preceding business year shall be converted to the annual average sales, if three years have not passed since the relevant business entity commended business as on the first day of the relevant business year, and the sales earned from the commencement of business to the date of the violation shall be converted to annual sales, if the relevant business entity commences business during the relevant business year. <Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 25173, Feb. 11, 2014>
(3) The Fair Trade Commission shall determine other matters necessary for calculating the related sales and the average sales. <Amended by Presidential Decree No. 18356, Apr. 1, 2004; Presidential Decree No. 20360, Nov. 2, 2007>
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 9-2 (Scope of Business Entities Using Operating Revenues)
"Business entity prescribed by Presidential Decree" in the main sentence of Article 6 of the Act means a business entity that enter the aggregate amount of prices of goods or services as operating revenues, etc. in its financial statements, etc.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 10 (In the Event that No Sales have been Made)
"Cases prescribed by Presidential Decree where no sales have been made or it is impracticable to calculate the sales" in the proviso to Article 6 of the Act means the following cases: <Amended by Presidential Decree No. 18356, Apr. 1, 2004; Presidential Decree No. 20360, Nov. 2, 2007>
1. Where there are no operating results because a business entity has not commenced business or has suspended its business, etc.;
2. Where it is impracticable to calculate the amount provided for in Article 9 (1), since the violation period or the scope of related goods or services cannot be determined;
3. Where it is impracticable to calculate sales objectively due to a loss or damage, etc. of the materials to calculate sales caused by a disaster, etc.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
CHAPTER III RESTRICTIONS ON BUSINESS COMBINATION AND
 Article 11 (Scope of Related Parties)
"Person in a special relationship prescribed by Presidential Decree" in the main sentence of Article 7 (1) of the Act means a person who has any of the following relationships with a company or a person other than a company:
1. A person who has de facto control over the company;
2. A person related to the same person: Provided, That a person who is excluded from persons related to the same person under Article 3-2 (1) are excluded herefrom;
3. A person who participate in the business combination in question with common interest in controlling management.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 12 (Standards for Total Assets or Sales)
(1) "Total assets" in the proviso to Article 7 (1) and in the former part of Article 12 (1) of the Act mean the total assets presented on the balance sheet as of the end of the business year immediately preceding the business year in which the date of the business combination falls: Provided, That if a company is engaged in financial business or insurance business, total assets mean the larger of the total capital (referring to the total assets minus total liabilities, as presented on the balance sheet; hereinafter the same shall apply) or the capital stock, as presented on its balance sheet as of the end of the immediately preceding business year. <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 27034, Mar. 8, 2016>
(2) For the purposes of paragraph (1), if the total assets have increased by issuance of new shares and bonds in the business year in which the date of the business combination falls, the total assets shall be the sum of the total assets presented on the balance sheet as of the end of the immediately preceding business year and the increased amount. <Amended by Presidential Decree No. 16221, Mar. 31, 1999>
(3) "Sales" in the proviso to Article 7 (1) and in the former part of Article 12 (1) of the Act mean the sales presented on the statement of profit or loss of the business year immediately preceding the business year in which the date of the business combination falls: Provided, That the sales mean operating revenues presented on the statement of profit or loss of the immediately preceding business year, if a company is engaged in financial business or insurance business. <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 27034, Mar. 8, 2016>
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 12-2 (Criteria for Large Company)
"Company that satisfies the criteria prescribed by Presidential Decree" in the proviso to Article 7 (1) of the Act means a company whose total assets or sales are at least two trillion won. <Amended by Presidential Decree No. 16221, Mar. 31, 1999>
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 12-3 (Exception to Scope of Related Parties)
"Person prescribed by Presidential Decree" in Articles 7 (1) 5 (a) and 8-2 (1) 1 of the Act and the latter part of subparagraph 3 of Article 11 of the Act means a person, as provided for in subparagraph 3 of Article 11. <Amended by Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 18768, Mar. 31, 2005>
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 12-4 (Business Combination with Inviable Company)
"Conditions prescribed by Presidential Decree" in Article 7 (2) 2 of the Act means satisfying the both of the following conditions:
1. Where the production equipment, etc. of a company cannot be utilized continuously in the market, if no business combination is conducted;
2. Where it is impracticable to conduct other business combination less competition-restrictive than the business combination in question.
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Articles 13 and 14 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 15 (Reporting, etc. on Establishment of, or Conversion into, Holding Company)
(1) A person who has established a holding company or has converted his/her company into a holding company shall file with the Fair Trade Commission a Form containing such information as his/her name, titles of the holding company and its subsidiaries, second-tier subsidiaries, and third-tier subsidiaries, as defined in Article 8-2 (5) of the Act (hereinafter referred to as "holding company, etc."), total assets, total liabilities, the status of shareholders, shareholding status, and business activities, along with documents verifying the details of the report within the following applicable period, as prescribed and publicly notified by the Fair Trade Commission pursuant to Article 8 of the Act: <Amended by Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007>
1. Within 30 days from the date of registration of establishment, if the person has established a holding company;
2. Within 30 days from the date of registration of the merger or division, if the person has converted his/her company into a holding company through a merger with another company or a division of such company;
3. Within 30 days from the expiration of the period of exclusion prescribed by other Act, if his/her company is not subject to Article 8 of the Act pursuant to other Act;
4. Within 4 months from the base date for calculation of total assets referred to in Article 2 (1) 2, if his/her company is converted into a holding company through acquisition of shares in another company, an increase or a decrease in assets, or due to other causes.
(2) Where a person who files a report under paragraph (1) is the same person who controls a member company of a business group subject to limitations on cross shareholding designated pursuant to the former part of Article 14 (1) of the Act (hereinafter referred to as "business group subject to limitations on cross shareholding"), or is a related party to the same person, the person shall also submit documents stating the annulment of debt guarantees referred to in each subparagraph of Article 8-3 of the Act. <Amended by Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 28197, Jul. 17, 2017>
(3) In filing a report on the establishment of a holding company under paragraph (1), where the number of incorporators is two or more, they shall file a report jointly: Provided, That the foregoing shall not apply where a report is filed by one agent chosen from among the incorporators required to file a report.
(4) Where a holding company ceases to satisfy Article 2 (1) or (2) due to such cause as a decrease in its shareholdings or an increase or a decrease in its assets during a specific business year and files a report thereon with the Fair Trade Commission, the holding company shall not be deemed a holding company from the date on which such cause arises.
(5) A company that files a report under paragraph (4) shall submit its balance sheet and shareholding status audited by a certified public accountant as of the date on which the relevant cause arises to the Fair Trade Commission, as prescribed by the Fair Trade Commission. In such cases, the Fair Trade Commission shall notify the company of the results of examining the report within 30 days after receipt of the report.
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 15-2 (Criteria for Venture Holding Company)
"Condition prescribed by Presidential Decree" in Article 8-2 (1) 2 of the Act means where the aggregate value of shares that a holding company holds in a venture business, as defined in Article 2 (1) of the Act on Special Measures for the Promotion of Venture Businesses, is more than or equal to 50 percent of the aggregate value of shares the holding company holds in its all subsidiaries. <Amended by Presidential Decree No. 18768, Mar. 31, 2005>
[This Article Newly Inserted by Presidential Decree No. 17176, Mar. 27, 2001]
 Article 15-3 Deleted. <by Presidential Decree No. 18768, Mar. 31, 2005>
 Article 15-4 (Restrictions, etc. on Shareholdings of Subsidiaries by Financial Holding Companies)
(1) "Domestic securities market prescribed by Presidential Decree" in the main sentence of Article 8-2 (2) 2 of the Act means the securities market provided for in Article 176-9 (1) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act. <Newly Inserted by Presidential Decree No. 24697, Aug. 27, 2013>
(2) "Company that meets the conditions prescribed by Presidential Decree, such as close relevance to financial business or insurance business" in the main sentence of Article 8-2 (2) 4 of the Act means a company whose purpose is to engage in any of the following business activities: <Amended by Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 24697, Aug. 27, 2013>
1. Rendering services, such as electronic and data processing, to financial or insurance companies;
2. Managing real estate or other assets held by financial or insurance companies;
3. Conducting surveys and research on financial business or insurance business;
4. Other business activities directly related to the inherent business of financial or insurance companies.
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 15-5 Deleted. <by Presidential Decree No. 18768, Mar. 31, 2005>
 Article 15-6 (Reporting on Shareholding Status, etc. by Holding Company, etc.)
(1) Pursuant to Article 8-2 (7) of the Act, a holding company shall submit a report containing the following matters to the Fair Trade Commission within four months after the end of the relevant business year, as determined and publicly notified by the Fair Trade Commission: <Amended by Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007>
1. General information, such as names, locations, dates of establishment, business activities, and names of representatives, etc. of the holding company, etc.;
2. Current shareholders of the holding company, etc.;
3. Shareholding status by the holding company, etc.;
4. Financial status, such as paid-in capital, total capital, total liabilities, and total assets of the holding company, etc.;
5. Deleted. <by Presidential Decree No. 18768, Mar. 31, 2005>
(2) The report submitted under paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 28197, Jul. 17, 2017>
1. Financial statements (including consolidated financial statements where companies shall compile the consolidated financial statements under the Act on External Audit of Stock Companies), such as balance sheets and statements of profit or loss for the immediately preceding business year of a holding company, etc., and audit reports compiled by auditors on the financial statements [limited to member companies of a business group subject to disclosure designated pursuant to the former part of Article 14 (1) of the Act (hereinafter referred to as "business group subject to disclosure") and companies subject to external audit under the Act on External Audit of Stock Companies];
2. The registers of shareholders of subsidiaries, second-tier subsidiaries, and third-tier subsidiaries, as defined in Article 8-2 (5) of the Act (hereinafter referred to as "third-tier subsidiary");
3. Deleted. <by Presidential Decree No. 20884, Jun. 25, 2008>
(3) The Fair Trade Commission may order any report and documents submitted under paragraphs (1) and (2), if incomplete, to be supplemented within a specified period.
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 16 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 17 Deleted. <by Presidential Decree No. 28197, Jul. 17, 2017>
 Article 17-2 Deleted. <by Presidential Decree No. 21492, May 13, 2009>
 Articles 17-3 and 17-4 Deleted. <by Presidential Decree No. 15767, Apr. 1, 1998>
 Article 17-5 (Requirements for Exception from Prohibition on Debt Guarantees)
(1) "Debt guarantee provided in relation to debts of a company transferred" in subparagraph 1 of Article 10-2 of the Act means any of the following guarantees: <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 15767, Apr. 1, 1998; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 28197, Jul. 17, 2017>
1. A guarantee provided by an acquiring company or its affiliate for a company transferred through a share transfer or merger or by other means in relation to the transferred company’s debts either outstanding at the time of transfer or prearranged to be underwritten;
2. A guarantee provided by an affiliate for a transferred company in relation to the transferred company’ debts under installment underwriting conditions.
(2) "Debt guarantee provided as it is necessary to enhance the international competitiveness of business entities or in circumstances prescribed by Presidential Decree" in subparagraph 2 of Article 10-2 of the Act means any of the following guarantees: <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 15767, Apr. 1, 1998; Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 16777, Apr. 1, 2000; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 18736, Mar. 8, 2005; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 19422, Mar. 29, 2006; Presidential Decree No. 19447, Apr. 14, 2006; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 28197, Jul. 17, 2017>
1. A guarantee for any loan made by the Export-Import Bank of Korea to fund the process of producing capital goods and other commodities or providing technology under Article 18 (1) 1 and 2 of the Export-Import Bank of Korea Act, or any loan made by other domestic financial institutions in relation thereto;
2. A bid bond, a performance bond, an advance refund guarantee, a reserve repayment guarantee, a warranty bond, or a tax payment guarantee provided by a domestic financial institution in relation to the execution of construction and industrial facility work outside Korea, shipbuilding for export, export of services, and other export of goods recognized by the Fair Trade Commission;
3. A guarantee for funding by domestic financial institutions for technical development projects, such as commercializing locally developed new technology or introduced technology and purchasing equipment and machinery to develop technology;
4. A guarantee for domestic financial institutions in purchasing export bills under documents against acceptance or payment terms, and opening a local letter of credit;
5. A guarantee for credits provided by overseas branches of domestic financial institutions in relation to any of the following projects:
(a) A foreign direct investment made under the Foreign Exchange Transactions Act;
(b) An overseas construction or service project performed by contractors of overseas construction and services;
(c) Other overseas projects recognized by the Fair Trade Commission;
6. A guarantee directly related to the acquisition by a third party of a company which has filed an application with the court to commence rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act;
7. A guarantee for credits provided by a domestic financial institution for an affiliate, if an investment is made in the affiliate that performs a public-private partnership project in any of the manners provided for in subparagraphs 1 through 4 of Article 4 of the Act on Public-Private Partnerships in Infrastructure;
8. A re-guarantee provided by a company for a newly established company through a division in direct relation to the guarantee, which was provided by the company for a company other than its affiliates, and underwritten by the newly established company, if the company, as provided for in Article 2 of the Act on the Improvement of Managerial Structure and Privatization of Public Enterprises, is divided for its structural reorganization:
[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]
 Article 17-6 Deleted. <by Presidential Decree No. 28197, Jul. 17, 2017>
 Article 17-7 Deleted. <by Presidential Decree No. 17176, Mar. 27, 2001>
 Article 17-8 (Resolutions by Board of Directors on Large-Scale Internal Trading and Disclosure)
(1) Deleted. <by Presidential Decree No. 28197, Jul. 17, 2017>
(2) Large-scale internal trading subject to resolution by the board of directors and disclosure in accordance with Article 11-2 (1) of the Act means trading in which the trading amount (referring to the aggregate amount of trading made during a quarter in the case of Article 11-2 (1) 4 of the Act) is equal to or exceeds 5 percent of the larger of a company’s total capital or capital stock, or 5 billion won. <Amended by Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 23475, Dec. 30, 2011>
(3) "Affiliate prescribed by Presidential Decree" in Article 11-2 (1) 4 of the Act means an affiliate at least 20 percent of the total number of shares issued by which is held by the same person, either alone or together with his/her relatives (except the persons excluded from persons related to the same person under Article 3-2 (1); hereafter the same shall apply in this paragraph) or an affiliate that is a subsidiary, as provided for in Article 342-2 of the Commercial Act, of said affiliate: Provided, That the following companies are excluded herefrom: <Newly Inserted by Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 23475, Dec. 30, 2011>
1. A member company of a business group in which the same person is not a natural person;
2. A subsidiary, second-tier subsidiary, and third-tier subsidiary of a holding company;
3. and 4. Deleted. <by Presidential Decree No. 22160, May 14, 2010>
(4) Material facts subject to disclosure in accordance with Article 11-2 (2) of the Act are as follows:
1. Objectives of the trading and object to be traded;
2. The trading partner (including a related party, if the trading is conducted for the related party although the related party is not a trading partner);
3. Amount and terms of trading;
4. Total trading balance of the same trading pattern with the trading partner;
5. Matters determined and publicly notified by the Fair Trade Commission, equivalent to subparagraphs 1 through 4.
(5) Trading that does not require a resolution by the board of directors in accordance with Article 11-2 (4) of the Act means trading that satisfies both of the following conditions: <Amended by Presidential Decree No. 18768, Mar. 31, 2005; presidential Decree No. 20166, Jul. 13, 2007>
1. The trading shall be conducted according to terms and conditions, as defined in Article 2 of the Act on Regulation of Terms and Conditions;
2. The trading shall be conducted in the ordinary business area of the relevant company.
(6) Except as provided for in this Decree, further details concerning the methods and procedures for, and time of, passing resolutions at the board of directors on large-scale internal trading and disclosure thereof, may be determined and publicly notified by the Fair Trade Commission. <Newly Inserted by Presidential Decree No. 20166, Jul. 13, 2007>
[This Article Newly Inserted by Presidential Decree No. 16777, Apr. 1, 2000]
 Article 17-9 Deleted. <by Presidential Decree No. 21492, May 13, 2009>
 Article 17-10 (Disclosure of Material Facts by Unlisted Company, etc.)
(1) "Company that meets the criteria prescribed by Presidential Decree" in the main sentence of Article 11-3 (1) of the Act means a company except any company whose total assets as of the end of the immediately preceding business year are less than ten billion won and which is being liquidated or has been suspending its business for one year or more. <Amended by Presidential Decree No. 28197, Jul. 17, 2017>
(2) "Matters prescribed by Presidential Decree" in Article 11-3 (1) 1 of the Act means the following: <Amended by Presidential Decree No. 27299, Jun. 30, 2016>
1. Any change in the largest shareholder’s shareholding status or shareholding ratio (including the same person and persons related to the same person, if the same person becomes the largest investor, acting alone or together with persons related to the same person), if it is changed by one percent or more of the total number of shares issued by the relevant corporation;
2. Current executive structure and any change in such structure;
3. Deleted. <by Presidential Decree No. 27299, Jun. 30, 2016>
(3) "Matters prescribed by Presidential Decree" in Article 11-3 (1) 2 of the Act means the following: <Amended by Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 20947, Jul. 29, 2008>
1. A decision, if the decision is made to acquire or dispose of fixed assets in an amount that is not less than ten percent of the total assets as of the end of the most recent business year [including the acquisition or disposal of fixed assets through a trust contract under the Financial Investment Services and Capital Markets Act (limited to where the relevant corporation has the authority to give instructions as to the management of assets) or a privately placed fund under the same Act (limited to where the relevant corporation exercises practical influence on the management of assets)];
2. A decision, if the decision is made to acquire or dispose of the shares and investment certificates of another corporation (excluding the affiliates) in an amount that is not less than five percent of the equity capital;
3. A decision, if the decision is made to give or take a gift in an amount that is not less than one percent of the equity capital;
4. A decision, if the decision is made to provide collateral or a debt guarantee (excluding any debt guarantee provided to guarantee the performance of a contract, etc. and the payment of tax) for a third person in an amount that is not less than five percent of the equity capital;
5. A decision, if the decision is made to exempt or be exempted from or to underwrite a debt in an amount that is not less than five percent of the equity capital;
6. A decision, if the decision is made to increase or decrease the capital;
7. A decision, if the decision is made to issue convertible bonds or bonds with warrant.
(4) "Matters prescribed by Presidential Decree" in Article 11-3 (1) 3 of the Act means the following: <Amended by Presidential Decree No. 19422, Mar. 29, 2006; Presidential Decree No. 19447, Apr. 14, 2006; Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 22160, May 14, 2010; Presidential Decree No. 27115, Apr. 29, 2016>
1. A decision, if the decision is made as prescribed in Article 374, 522, 527-2, 527-3, or 530-2 of the Commercial Act;
2. A decision, if the decision is made with respect to an all-inclusive share swap as prescribed in Article 360-2 of the Commercial Act or all-inclusive share transfer as prescribed in Article 360-15 of said Act;
3. A ground for dissolution, if it arises as prescribed in Article 517 of the Commercial Act or any other Act;
4. A decision, if the decision is made to commence, complete, or rescind rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act;
5. Deleted; <by Presidential Decree No. 19447, Apr. 14, 2006>
6. A decision, if the decision is made to commence, suspend or cancel workout procedures pursuant to the Corporate Restructuring Promotion Act;
7. Deleted. <by Presidential Decree No. 23475, Dec. 30, 2011>
(5) For the purposes of paragraphs (1) through (4), the total assets and equity capital as of the end of the most recent business year shall be calculated for the period beginning on the date on which three months pass after the end of each business year and ending on the date which falls on three months after the end of the business year following each such business year; and it shall be based on the paid-in capital as of the date of establishment in lieu of the total assets and equity capital as of the end of the most recent business year, if there is no balance sheet for the most recent business year because a company is newly established. <Amended by Presidential Decree No. 20166, Jul. 13, 2007>
(6) Except as provided for in this Decree, further details concerning the methods and procedures for, and time of, disclosures by companies, other than listed corporations, under Article 11-3 of the Act may be determined and publicly notified by the Fair Trade Commission. <Newly Inserted by Presidential Decree No. 20166, Jul. 13, 2007; Presidential Decree No. 20947, Jul. 29, 2008>
[This Article Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005]
 Article 17-11 (Disclosure of Status, etc. of Business Group)
(1) "Company that meets the criteria prescribed by Presidential Decree" in Article 11-4 (1) of the Act means a company except any company whose total assets as of the end of the immediately preceding business year are less than ten billion won and which is being liquidated or has been suspending its business for one year or more. <Amended by Presidential Decree No. 28197, Jul. 17, 2017>
(2) "Matters prescribed by Presidential Decree" in Article 11-4 (1) of the Act means the following: <Amended by Presidential Decree No. 23475, Dec. 30, 2011; Presidential Decree No. 25503, Jul. 21, 2014; Presidential Decree No. 27529, Sep. 29, 2016; Presidential Decree No. 28197, Jul. 17, 2017>
1. Names, business activities, and financial status of member companies of a business group subject to disclosure, changes in affiliates, and other general information determined and publicly notified by the Fair Trade Commission;
2. Details of executive officers of member companies of a business group subject to disclosure;
3. Details of shareholding by member companies of a business group subject to disclosure;
4. Details of shareholding among member companies of a business group subject to disclosure;
4-2. Details of affiliates, which are not member holding companies, etc. of a business group subject to disclosure [limited to where the combined total assets of the holding companies, etc. are more than or equal to fifty percent of the combined total assets of all member companies of the business group (or the larger of the total capital or capital stock in the case of a company engaging in financial business or insurance business)];
4-3. Details of cross shareholding among the member companies of a business group subject to disclosure;
4-4. Details of circular shareholding among the member companies of a business group subject to disclosure;
4-5. Details of debt guarantees provided among member companies of a business group subject to disclosure;
4-6. Whether a member company of a business group subject to disclosure, which is engaging in financial business or insurance business, has exercised voting rights as prescribed in Article 11 of the Act (excluding the exercise of voting rights in the shares of the company engaging in financial business or insurance business);
5. Details of funds, assets, goods, or services provided or traded between a member company of a business group subject to disclosure and its related parties;
6. Where the amount of goods or services traded with an affiliate during a business period (a business quarter in the case of a listed company, and a business year in the case of an unlisted company) is more than or equal to five percent of the sales for the same business period or five billion won, the details of the goods or services traded with the affiliate.
(3) Matters provided for in paragraph (2) shall be disclosed on a quarterly basis: Provided, That matters determined and publicly notified by the Fair Trade Commission may be disclosed once or twice a year.
(4) Except as provided for in paragraphs (1) through (3), further details concerning the methods and procedures for, and time of, disclosures of status of business groups, etc. may be determined and publicly notified by the Fair Trade Commission.
[This Article Newly Inserted by Presidential Decree No. 21492, May 13, 2009]
 Article 18 (Reporting, etc. on Business Combination)
(1) "Company whose total assets or sales meet the criteria prescribed by Presidential Decree" in the former part of Article 12 (1) of the Act means a company whose total assets or sales are 300 billion won or more. <Amended by Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20884, Jun. 25, 2008; Presidential Decree No. 28352, Sep. 29, 2017>
(2) "Another company whose total assets or sales meet the criteria prescribed by Presidential Decree" in the former part of Article 12 (1) of the Act means a company whose total assets or sales are 30 billion won or more. <Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 28352, Sep. 29, 2017>
(3) Notwithstanding paragraphs (1) and (2), where both a company required to report its business combination under Article 12 (1) of the Act and its partner company are foreign companies (referring to companies whose main offices are located overseas or are established under foreign laws) or where a company required to report its business combination is a domestic company and its partner company is a foreign company, such company is required to report as prescribed in Article 12 (1) of the Act only where the companies meet the requirements of paragraphs (1) and (2), and each foreign company’s sales in the Republic of Korea is 30 billion won or more. In such cases, the Fair Trade Commission shall determine and publicly notify matters necessary to calculate sales in Korea. <Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 28352, Sep. 29, 2017>
(4) Any entity that reports as prescribed in Article 12 (1) of the Act shall file with the Fair Trade Commission a Form containing such information as its name, name of the partner company, sales, total assets, business activities, details of the business combination, and status of the relevant market, along with relevant documents necessary for supporting the report, as determined and publicly notified by the Fair Trade Commission. <Amended by Presidential Decree No. 17176, Mar. 27, 2001>
(5) Where the Form or supporting documents filed under paragraph (4) are incomplete, the Fair Trade Commission may order the Form or supporting documents to be supplemented within a specified period. In such cases, the period required to supplement (including the dates on which the written order to supplement is sent and the supplemented documents arrive at the Fair Trade Commission) shall not be included in the period prescribed in Article 12 (7) and (10) of the Act. <Amended by Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 23864, Jun. 19, 2012>
(6) "Where the company holds 20 percent or more (or 15 percent or more in the case of a listed corporation) of the total number of shares" in Article 12 (1) 1 of the Act means where the company crosses the 20 percent holding threshold (or 15 percent in the case of a listed corporation; hereafter the same shall apply in this paragraph). <Amended by Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 19447, Apr. 14, 2006; Presidential Decree No. 20947, Jul. 29, 2008>
(7) "Where a person becomes the largest shareholder" in Article 12 (1) 2 of the Act means where a person who was not the largest investor becomes the largest investor. <Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005>
(8) "Date of the business combination" in the main sentence of Article 12 (2) of the Act and the main sentence of and the proviso to paragraph (6) of the same Article means any of the following applicable dates: <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 21492, May 13, 2009>
1. In the event of holding the shares in another company or increasing the holding ratio of shares in another company, the date stipulated in each of the following items:
(a) In the case of acquisition of shares in a stock company, the date a share certificate is issued: Provided, That where no share certificate is issued, it means the date on which the payment of shares is made; and where voting rights or other rights in shares are actually transferred under an agreement or a contract before a share certificate is issued or the payment of shares is completed, it means the date on which such rights are transferred;
(b) In the case of purchase of new shares of a stock company, the date following the date on which the payment of shares is due;
(c) In the case of acquisition by transfer of shares of a company, other than a stock company, the date on which the transfer of shares takes effect;
(d) In the case of increasing the shareholding ratio due to any other cause than items (a) through (c), such as the reduction of capital or the retirement of shares, the date on which the increase in the shareholding ratio is confirmed;
2. In the event of concurrently holding an executive position in another company, the date on which the appointment of an executive is determined at a general meeting of shareholders or employees of the company in which the executive concurrently hold an executive position;
3. In the event of acquiring a business by transfer, the date on which the payment for acquisition of a business is made: Provided, That where the payment for acquisition of a business is made after the lapse of 90-day period from the date of conclusion of the contract, it means the date on which such 90-day period lapses;
4. In the event of a merger with other company, the date of registration of the merger;
5. In the event of participating in the establishment of a new company, the date following the date on which the payment of allocated shares is due.
(9) "Cases prescribed by Presidential Decree" in the proviso to Article 12 (6) of the Act means the following cases where a company holds shares in another company or becomes the largest shareholder thereof: <Amended by Presidential Decree No. 23475, Dec. 30, 2011>
1. Where the company holds shares through competitive bidding at the securities exchange defined in Article 9 (13) of the Financial Investment Services and Capital Markets Act (excluding where shares are acquired in such a manner that parties to the trade have determined in advance the quantity, price, etc. of the relevant shares by a contract or agreement and make the settlement thereof through the securities exchange);
2. Cases determined and publicly notified by the Fair Trade Commission, such as where the shareholding ratio is increased due to the forfeiture of shares as a result of increase of paid-in capital, or due to the retirement of shares or a capital reduction made by the resolution of the board of directors or the general meeting of shareholders of other company irrelevant to its own will.
(10) "Date prescribed by Presidential Decree" in the proviso to Article 12 (6) of the Act means each of the following applicable dates: <Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 20884, Jun. 25, 2008; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 23475, Dec. 30, 2011; Presidential Decree No. 23864, Jun. 19, 2012>
1. Where the relevant company holds shares in another company or becomes the largest shareholder thereof, the date on which the company enters into a contract, agreement, etc. to acquire or hold the shares or the date on which a resolution is passed at the board of directors, etc.;
2. Where the relevant company merges with other company or acquires the business of another company, the date on which a contract for the merger or business acquisition is concluded;
3. Where the relevant company participates in the establishment of a new company, the date on which a resolution thereon is made at a general meeting of shareholders or the board of directors in lieu of such general meeting.
(11) A large-scale company that has filed a report in accordance with the proviso to Article 12 (6) of the Act shall report any material change in the report, if any, by the date of shareholding, the date of registration of the merger, date of acquisition of business, or the date of establishment of a company after filing the report. <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005>
(12) Deleted. <by Presidential Decree No. 23864, Jun. 19, 2012>
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 19 (Designation, etc. of Agent to File Report on Business Combination)
(1) An entity that intends to be designated as an agent pursuant to the proviso to Article 12 (11) of the Act shall file an application containing its name, total assets, sales, etc. with the Fair Trade Commission. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 23864, Jun. 19, 2012>
(2) The Fair Trade Commission shall give notice of designation to the relevant applicant upon having designated an agent after receipt of an application filed under paragraph (1). <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
 Article 20 (Reporting on Shareholding Status, etc.)
(1) A company that intends to file a report as prescribed in Article 13 (1) of the Act shall file a Form containing the following matters with the Fair Trade Commission by May 31 of each year: Provided, That a member company of a business group, which is newly designated as a business group subject to disclosure, shall file a Form within 30 days from the date of receipt of written notice given under Article 21 (5) in the year of such designation: <Amended by Presidential Decree No. 13842, Feb. 20, 1993; Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 16777, Apr. 1, 2000; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 27529, Sep. 29, 2016; Presidential Decree No. 28197, Jul. 17, 2017>
1. General information about the company, such as its title, capital stock, and total assets;
2. Number of shares that its affiliates and related parties hold in the company;
3. Status of shares the company holds in domestic companies;
4. Deleted. <by Presidential Decree No. 28197, Jul. 17, 2017>
(2) The Form filed under paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 15767, Apr. 1, 1998; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 28197, Jul. 17, 2017>
1. A statement of shares held by the relevant company;
2. A table describing the status of cross shareholding with affiliates;
3. An auditing report in the immediately preceding business year of the relevant company;
4. through 6. Deleted. <by Presidential Decree No. 28197, Jul. 17, 2017>
(3) Where any change occurs in relation to a member company of a business group subject to disclosure following the acquisition of shares, etc., the member company shall file a report containing the details of such change with the Fair Trade Commission within 30 days from the following applicable date pursuant to Article 13 (1) of the Act: <Amended by Presidential Decree No. 16777, Apr. 1, 2000; Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 22160, May 14, 2010; Presidential Decree No. 28197, Jul. 17, 2017>
1. Where the member company holds shares or its shareholding ratio increases: The date specified in each item of Article 18 (8) 1;
2. Where the member company appoints an executive: The date on which the appointment of the executive is decided at a general meeting of shareholders or a general meeting of employees of the company that appoints such executive;
3. Where the member company participates in the establishment of a new company: The date of registration of establishment of the new company;
4. In any case other than subparagraphs 1 through 3: The date on which it is entitled to exercise its controlling influence over the management of the relevant company to which it belongs under a contract, an agreement, etc. with major shareholders.
(4) A company that intends to file a report pursuant to Article 13 (2) of the Act shall file a report containing the amount of debt guarantees provided by the relevant company, along with the following documents, with the Fair Trade Commission by May 31 of each year: Provided, That a member company of a business group, which is newly designated as a business group subject to limitations on cross shareholding, shall file a report within 30 days from the date of receipt of written notice given under Article 21 (5) in the year of such designation: <Newly Inserted by Presidential Decree No. 28197, Jul. 17, 2017>
1. A detailed statement of debt guarantees provided by the relevant company for its affiliates and changes in debt guarantees during the immediately preceding one year;
2. A detailed statement of debt guarantees the relevant company received from its affiliates and changes in debt guarantees during the immediately preceding one year;
3. Written certificates prepared in the Form specified by the Fair Trade Commission by any of the domestic financial institutions referred to in the items of subparagraph 3-7 of Article 2 of the Act, to verify the amount of debt guarantees provided by the relevant company and the details thereof.
 Article 20-2 Deleted. <by Presidential Decree No. 17176, Mar. 27, 2001>
 Article 21 (Designation, etc. of Business Group subject to Disclosure and Business Group subject to Limitations on Cross Shareholding)
(1) A business group, the combined total assets of domestic member companies (in the case of a company engaging in financial business or insurance business, referring to the larger of the total capital or capital stock, and in cases of a newly established company which has no balance sheet for the immediately preceding year, referring to the paid-in capital; hereafter the same shall apply in this Article) of which, as presented on the balance sheet for the year immediately preceding the designation as a business group subject to disclosure, are equal to or more than five trillion won, shall be designated as a business group subject to disclosure: Provided, That any of the following business groups shall be excluded from a business group subject to disclosure:
1. A business group solely engaging in financial business or insurance business;
2. A business group in which a company engaging in financial business or insurance business is the same person;
3. A business group, in the case of which the combined total assets of the following companies among the member companies of that business group are equal to or more than 50 percent of the total assets of the entire business group: Provided, That a business group whose member companies’ combined total assets, except the following companies, are five trillion won or more shall be excluded herefrom:
(a) A company undergoing rehabilitation procedures according to a decision on commencing such procedures under the Debtor Rehabilitation and Bankruptcy Act;
(b) A company undergoing workout procedures according to a decision on commencing such procedures under the Corporate Restructuring Promotion Act;
4. A business group in which a public institution referred to in Article 4 of the Act on the Management of Public Institutions, or a local government-directly operated enterprise, local government-invested public corporation, or local government public corporation referred to in Article 2 (1) of the Local Public Enterprises Act is the same person.
(2) Paragraph (1) shall apply mutatis mutandis to the scope of a business group subject to limitations on cross shareholding. In this regard, "a business group subject to disclosure" in the main sentence of and the proviso to paragraph (1) shall be construed as "a business group subject to limitations on cross shareholding" respectively, and "five trillion won" in the main sentence of paragraph (1) and in subparagraph 3 of the same paragraph shall be construed as "ten trillion won" respectively.
(3) The Fair Trade Commission may examine the appropriateness of the threshold of the total assets specified in paragraph (2) every three years, taking into account of such matters as changes in the scale of the national economy, changes in the total assets of business groups designated as business groups subject to limitations on cross shareholding, and differences, etc. in the total assets among business groups designated as business groups subject to limitations on cross shareholding, and may take necessary measures, such as adjusting the threshold of the total assets.
(4) Pursuant to the former part of Article 14 (1) of the Act, the Fair Trade Commission shall designate business groups that newly meet the criteria prescribed in paragraph (1) or (2) as business groups subject to disclosure or business groups subject to limitations on cross shareholding by May 1 (or May 15 in exceptional circumstances) of each year; and shall exclude business groups that no longer meet the criteria prescribed in paragraph (1) or (2) from business groups subject to disclosure or business groups subject to limitations on cross shareholding.
(5) Where the Fair Trade Commission newly designates, or excludes from designation, any business group subject to disclosure or business group subject to limitations on cross shareholding pursuant to paragraph (4), it shall immediately give written notice of such fact to the member companies of the relevant business group and the same person of the relevant business group.
(6) Where any change occurs in relation to any member company of a business group subject to disclosure or business group subject to limitations on cross shareholding after the Fair Trade Commission has given written notice of designation as such under paragraphs (4) and (5), the Fair Trade Commission shall give written notice of such change to the relevant company and the same person of the relevant business group.
(7) "Materials prescribed by Presidential Decree, such as general status of a company, composition of shareholders and executive officers of a company, status of related parties, and shareholding status" in Article 14 (4) of the Act means the following materials:
1. General status of a company;
2. Composition of shareholders and executive officers of a company;
3. Status of related parties;
4. Shareholding status;
5. Status of each member company undergoing rehabilitation procedures according to a decision on commencing such procedures under the Debtor Rehabilitation and Bankruptcy Act and each member company undergoing workout procedures according to a decision on commencing such procedures under the Corporate Restructuring Promotion Act;
6. An audit report: Provided, That in the case of a company not subject to an external audit pursuant to the Act on External Audit of Stock Companies, it refers to a statement of tax adjustment, and if there is no statement of tax adjustment, it refers to a balance sheet;
7. Materials that the Fair Trade Commission requests to verify the materials set forth in subparagraphs 1 through 6.
(8) "Date prescribed by Presidential Decree" in Article 14-3 of the Act means any of the following dates:
1. In the case of a company which is not included in the member companies of a business group subject to disclosure as at the time the business group is designated as a business group subject to disclosure, although it should have been included therein, the date on which the business group is designated and notified of the designation;
2. In the case of a company which is not included in the member companies of a business group after the business group is designated as a business group subject to disclosure, although it should have been included therein, the first day of the month following the month during which a cause for becoming member companies of the relevant business group subject to disclosure occurs.
(9) Where any of the following applies to a business group designated as a business group subject to disclosure or business group subject to limitations on cross shareholding pursuant to paragraph (4), the Fair Trade Commission may exclude it from business groups subject to disclosure or business groups subject to limitations on cross shareholding at the time the cause occurs. In such cases, it shall give written notice of exclusion to member companies of the relevant business group and the same person of the relevant business group:
1. Where the combined total assets, as presented on the balance sheets for the business year immediately preceding the date of designation of companies, as referred to in paragraph (1) 3 (a) or (b), among companies that have become members of the relevant business group after the date of designation, are equal to or more than 50 percent of the combined total assets of the entire business group: Provided, That any business group subject to disclosure whose combined total assets excluding companies, as referred to in paragraph (1) 3 (a) or (b), are not less than 3,500 billion won and any business group subject to limitations on cross shareholding whose combined total assets excluding the same are not less than seven trillion won shall be excluded herefrom;
2. Where the combined total assets of domestic member companies of the relevant business group reduce to less than 3,500 billion won in the case of a business group subject to disclosure, and not less than seven trillion won in the case of a business group subject to limitations on cross shareholding.
[This Article Wholly Amended by Presidential Decree No. 28197, Jul. 17, 2017]
 Article 21-2 (Scope of Relevant Institutions)
"Institutions prescribed by Presidential Decree" in subparagraph 4 of Article 14-4 of the Act mean an institution engaged in transfer agent activities pursuant to the Financial Investment Services and Capital Markets Act and a credit information collection agency, as defined in subparagraph 6 of Article 2 of the Credit Information Use and Protection Act. <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 21765, Oct. 1, 2009>
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 21-3 (Scope of Information Disclosed in Relation to Status, etc. of Business Groups subject to Disclosure)
(1) "Information prescribed by Presidential Decree" in Article 14-5 (1) 1 of the Act means information about the following: <Amended by Presidential Decree No. 28197, Jul. 17, 2017>
1. Names, business activities, major shareholders, executive officers, financial standings, and other general information of member companies of a business group subject to disclosure;
2. Composition and operation of the board of directors of member companies of a business group subject to disclosure and the committees established under the board of directors pursuant to Article 393-2 of the Commercial Act, the method of exercising voting rights at general meetings of shareholders, and other information about their corporate governance.
(2) "Information prescribed by Presidential Decree" in Article 14-5 (1) 2 of the Act means information about the following: <Amended by Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 28197, Jul. 17, 2017>
1. Status related to shareholding, such as shareholding status among member companies of a business group subject to disclosure, or between a member company of a business group subject to disclosure and its related parties;
2. Status of debt guarantees provided among member companies of a business group subject to limitations on cross shareholding;
3. Status of funds, securities, assets, goods, services, and other transactions among member companies of a business group subject to disclosure or between a member company of a business group subject to disclosure and its related parties.
[This Article Newly Inserted by Presidential Decree No. 20166, Jul. 13, 2007]
 Article 21-4 (Types of and Standards for Unlawful Practices)
(1) The following are acts that constitute the unlawful practices prohibited under Article 15 (1) of the Act: <Amended by Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 16777, Apr. 1, 2000; Presidential Decree No. 17176, Mar. 27, 2001; Presidential Decree No. 17564, Mar. 30, 2002; Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 20947, Jul. 29, 2008; Presidential Decree No. 25503, Jul. 21, 2014; Presidential Decree No. 28197, Jul. 17, 2017>
1. Deleted; <by Presidential Decree No. 18768, Mar. 31, 2005>
2. Deleted; <by Presidential Decree No. 28197, Jul. 17, 2017>
2-2. Any of the following acts done by a member company of a business group subject to limitations on cross shareholding:
(a) Bearing debts of the same terms and conditions without releasing its affiliate from their existing debts to any of the domestic financial institutions referred to in the items of subparagraph 3-7 of Article 2 of the Act;
(b) Providing a debt guarantee for another company or its affiliate in return for requiring such company or its affiliate to provide a debt guarantee for its affiliate;
(c) Causing a trust business entity to acquire shares of its affiliate that has acquired or held its shares through a specific money trust referred to in subparagraph 1 of Article 103 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act and practically exercising voting rights in such shares through a contract, etc. with the trust business entity;
(d) Acquiring or holding shares of its affiliate that has acquired or held its shares, under a third person's name and on its own account;
(e) Causing a trust business entity to acquire or hold shares, which would qualify for either of the following if acquired or held by it, through a specific money trust referred to in subparagraph 1 of Article 103 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, and practically exercising voting rights in such shares through a contract, etc. with the trust business entity:
(i) Shares that constitute a shareholding in an affiliate forming circular shareholding, which is prohibited pursuant to Article 9-2 (2) of the Act;
(ii) Shares that constitute an additional shareholding that a member affiliate of a group of circular shareholding companies has in an issuing company, which is prohibited pursuant to Article 9-2 (2) of the Act;
(f) Acquiring or holding shares, which would qualify for item (a) (i) or (ii) if acquired or held by it, under a third person's name and on its own account;
3. Other acts determined and publicly notified by the Fair Trade Commission, similar to those provided for in subparagraph 2-2.
(2) Deleted. <by Presidential Decree No. 18768, Mar. 31, 2005>
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 22 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 23 Deleted. <by Presidential Decree No. 18768, Mar. 31, 2005>
 Article 23-2 (Scope of Standard Balance Sheet)
"Balance sheet prescribed by Presidential Decree" in Article 17 (4) 1 of the Act means the balance sheet that reveals a violation of Article 8-2 (2) through (4) of the Act for the first time: Provided, That where a violation of the Act is not revealed by the balance sheet because the violation (excluding any violation of Article 8-2 (2) 1 of the Act) is corrected before the balance sheet is prepared, the standard balance sheet means the balance sheet that is prepared as of the date of such violation.
[This Article Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005]
 Article 23-3 Deleted. <by Presidential Decree No. 21492, May 13, 2009>
 Article 23-4 (Imposition, Collection, etc. of Enforcement Fines)
(1) The Fair Trade Commission shall impose an enforcement fine pursuant to Article 17-3 of the Act for a period beginning on the date following the expiration of a period specified for a corrective measure and ending on the date the corrective measure is performed. In such cases, the Fair Trade Commission shall impose such enforcement fine within 30 days from the expiration of the period specified for the corrective measure, except in extenuating circumstances. <Amended by Presidential Decree No. 17564, Mar. 30, 2002>
(2) In determining the date on which a corrective measure is performed under paragraph (1), where the corrective measure requires the disposal of shares, such date means the date of issuance of share certificates; where the corrective measure requires the resignation of an executive, such date means the date of registration of such resignation; and where the corrective measure requires the transfer of business, such date means the date of registration of the transfer of ownership in the related real estate.
(3) Notwithstanding paragraph (1), where the Fair Trade Commission imposes an enforcement fine on a person who has failed to perform a corrective measure, as provided for in Article 16 (1) 7 and 8 of the Act, which requires a certain duty to be fulfilled within a specific period, such as each quarter and each business year, the Commission shall impose the enforcement fine for a period of non-performance. In such cases, the Fair Trade Commission shall impose such enforcement fine within 30 days from the date on which it ascertains whether such corrective measure is performed, except in special circumstances.
(4) Criteria for imposing the enforcement fines provided for in Article 17-3 (1) of the Act are as specified in attached Table 1. <Amended by Presidential Decree No. 22160, May 14, 2010>
(5) To impose an enforcement fine, the Fair Trade Commission shall issue written notice stating the amount of the enforcement fine per day (referring to the amount assessed for a period of non-performance, if the enforcement fine is imposed as prescribed in paragraph (3)), grounds for imposition, due date, receiving agencies, methods of filing an objection, and the agencies to file an objection.
(6) A person issued written notice under paragraph (5) shall pay the enforcement fine by the due date specified as follows: Provided, That where the person is unable to pay the enforcement fine by the due date due to a natural disaster or other extenuating circumstances, he/she shall pay it within 30 days from the date such grounds cease to exist:
1. Where the enforcement fine is imposed under paragraph (1), within 30 days from the date on which the Fair Trade Commission assesses the amount of the enforcement fine and gives a payment notice after confirming the date of completion of the corrective measures;
2. Where the enforcement fine is imposed under paragraph (3), within 30 days from the date of the written notice issued by the Fair Trade Commission.
(7) In collecting an enforcement fine pursuant to paragraph (1), if no corrective measure is taken after the lapse of 90 days from the last day of the period specified for the corrective measure, the Fair Trade Commission may collect the enforcement fine upon the lapse of every 90-day period beginning on the last day of the period specified for the corrective measure.
(8) Articles 64-2 and 64-3 shall apply mutatis mutandis to demands for the payment of enforcement fines and entrustment of dispositions on enforcement fines in arrears, respectively. <Amended by Presidential Decree No. 27034, Mar. 8, 2016>
(9) Detailed standards for imposing enforcement fines and matters necessary for imposing such enforcement fines shall be determined and publicly notified by the Fair Trade Commission. <Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007>
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 23-5 Deleted. <by Presidential Decree No. 21492, May 13, 2009>
CHAPTER IV RESTRICTION ON ILLEGAL CARTEL CONDUCT
 Article 24 (Conditions for Approval of Cartel Conduct)
"Conditions prescribed by Presidential Decree" in the main sentence of Article 19 (2) of the Act mean the requirements provided for in Articles 24-2 through 28.
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 24-2 (Conditions for Cartel Conduct for Industrial Rationalization)
Cartel conduct for industrial rationalization provided for in Article 19 (2) 1 of the Act may be approved, only where the cartel conduct satisfies the following conditions: <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17564, Mar. 30, 2002>
1. The cartel conduct has obvious effects of improving technology and quality, reducing costs, and enhancing efficiency, etc.;
2. Industrial rationalization cannot be achieved in any manner other than engaging in the cartel conduct;
3. The cartel conduct has greater effects of industrial rationalization than restricting competition.
 Article 24-3 (Conditions for Cartel Conduct for Research and Technical Development)
Cartel conduct for research and technical development provided for in Article 19 (2) 2 of the Act may be approved, only where the cartel conduct satisfies the following conditions: <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17564, Mar. 30, 2002>
1. Such research and technical development is essential to reinforce industrial competitiveness and have far-reaching effects on the economy;
2. The scale of investment required for such research and technical development is too big to be made by a single business entity;
3. The cartel conduct is necessary to diversify risks due to the uncertainty of the outcomes of such research and technical development;
4. The cartel conduct has greater effects of research and technical development than restricting competition.
[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]
 Article 25 (Conditions for Cartel Conduct to Recover from Economic Recession)
Cartel conduct to recover from economic recession provided for in the proviso to Article 19 (2) 3 of the Act may be approved, only where the cartel conduct satisfies the following conditions: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Demand for specific goods or services has reduced over an extended period; the supply of the specific goods or services has exceeded greatly demand therefor; and such state is obviously going to continue in the future;
2. The market price of the goods or services remains below the average production costs over an extended period;
3. It might impracticable for a considerable number of enterprises in the business field to continue their business activities due to economic recession;
4. It is impossible to overcome the matters provided for in subparagraphs 1 through 3 by business rationalization.
 Article 26 (Conditions for Cartel Conduct for Industrial Restructuring)
Cartel conduct for industrial restructuring provided for in Article 19 (2) 4 of the Act may be approved, only where the cartel conduct satisfies the following conditions: <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17564, Mar. 30, 2002>
1. The supply capacity of a specific industry is substantially excessive due to changes in domestic and overseas economic conditions or where the production efficiency or international competitiveness of a specific industry shows a noticeable drop due to deterioration of the production equipment and methods;
2. It is impossible to overcome the matters provided for in subparagraph 1 by business rationalization;
3. The cartel conduct has greater effects of industrial restructuring than restricting competition.
 Article 27 (Conditions for Cartel Conduct for Rationalizing Terms and Conditions of Transactions)
Cartel conduct for rationalizing terms and conditions of transactions provided for in Article 19 (2) 5 of the Act may be approved, only where the cartel conduct satisfies the following conditions: <Amended by Presidential Decree No. 17564, Mar. 30, 2002>
1. Rationalizing terms and conditions of transactions contributes to significantly improving productivity, facilitating transactions, and enhancing consumers' convenience or interests;
2. Terms and conditions of transactions rationalized can be complied with by most business entities in the relevant business technically or economically;
3. The cartel conduct has greater effects of rationalizing terms and conditions of transactions than restricting competition.
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 28 (Conditions for Cartel Conduct to Improve Competitiveness of Small and Medium Enterprises)
Cartel conduct to improve the competitiveness of small and medium enterprises provided for in Article 19 (2) 6 of the Act may be approved, only where the cartel conduct satisfies the following conditions: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. The cartel conduct has effects of improving small and medium enterprises’ productivity in terms of quality and technology or strengthening their bargaining power on terms and conditions of transactions;
2. All participating business entities are small and medium enterprises;
3. Small and medium enterprises cannot compete efficiently against, or oppose large enterprises by any means other than engaging in the cartel conduct.
 Article 29 (Limitations on Approval of Cartel Conduct)
Notwithstanding Articles 24-2 through 28, the Fair Trade Commission shall not approve cartel conduct in any of the following circumstances: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Where the cartel conduct might exceed the degree necessary for achieving its objective;
2. Where the cartel conduct might unfairly harm the interests of consumers and related business entities;
3. Where any unfair discrimination exists among participating business entities participating in relation to the cartel conduct;
4. Where participation in or withdrawal from the cartel conduct is restricted unfairly.
 Article 30 (Procedures, etc. for Approval of Cartel Conduct)
(1) A person who intends to obtain approval to engage in cartel conduct pursuant to Article 19 (2) of the Act shall file an application containing the following matters with the Fair Trade Commission: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Number of participating business entities;
2. Names of participating business entities and addresses of their business places;
3. Addresses and names of the representative and executives;
4. Reasons for engaging in the cartel conduct and particulars thereof;
5. Duration of the cartel conduct;
6. Business activities of participating business entities.
(2) The application referred to be paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Business reports, balance sheets, and statements of profit or loss of participating business entities for the most recent two years;
2. A copy of the agreement or written resolution on the cartel conduct;
3. Documents attesting that the cartel conduct satisfies the requirements for approval;
4. Documents attesting that the cartel conduct complies with Article 29.
(3) The Fair Trade Commission shall, upon approval of the application filed under paragraph (1), shall issue a certificate of approval to the relevant applicant.
(4) Where a person who has obtained approval to engage in cartel conduct intends to modify approved matters, he/she shall file an application for modification with the Fair Trade Commission along with the documents related to modified matters among those referred to in paragraphs (1) and (2) and the certificate of approval.
(5) Upon receipt of an application for approval filed pursuant to Article 19 (2) of the Act, the Fair Trade Commission shall determine as to whether to approve the application within 30 days (or the disclosure period plus 30 days in the case of publication under Article 31 (3)) after receipt of such application: Provided, That the Fair Trade Commission may extend such period by up to 30 days, where deemed necessary. <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>
 Article 31 (Disclosure of Content of Application for Approval of Cartel Conduct)
(1) The Fair Trade Commission may disclose the content of an application to seek opinions from interested parties before approving the application pursuant to Article 19 (2) of the Act, where deemed necessary. The same shall also apply to modifying the approved matters. <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>
(2) The Fair Trade Commission shall include the following in disclosing the content of an application for approval of cartel content or an application for modifications of approval pursuant to paragraph (1): <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Name and address of the applicant;
2. Details of the cartel conduct;
3. Reasons for engaging in the cartel conduct;
4. Duration of the cartel conduct;
5. Modifications to original approval and reasons therefor, in the case of an application for modifications.
(3) Disclosure referred to in paragraph (1) shall be made for not more than 30 days. <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>
(4) An interested party who has any opinion about the disclosure made under paragraph (2) may submit a written opinion specifying the following matters to the Fair Trade Commission within the disclosure period: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Its name or title and address;
2. Details of its opinion and the reason for presenting such opinion;
3. Other matters necessary to state its opinion.
 Article 32 (Discontinuation of Approved Cartel Conduct)
A business entity that has obtained approval to engage in cartel conduct under Article 19 (2) of the Act shall promptly report to the Fair Trade Commission upon discontinuing the cartel conduct.
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 33 (Types of Collusion in Auction and Bidding)
"Matters prescribed by Presidential Decree" in Article 19 (1) 8 of the Act means any of the following matters:
1. Ratio of successful bidding or auctioning;
2. Methods of design or construction;
3. Other matters that constitute competition factors in bidding or auction.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 34 (Submission, etc. of Information for Analyzing Signs of Possible Bidding Rigging in Public Sector)
(1) "Public institutions prescribed by Presidential Decree" in Article 19-2 (2) of the Act mean the following public institutions: <Amended by Presidential Decree No. 21492, May 13, 2009>
1. Central administrative agencies established under the Government Organization Act or other Acts;
2. Local governments, as defined in Article 2 of the Local Autonomy Act;
3. Public corporations, as referred to in Article 5 of the Act on the Management of Public Institutions.
(2) Bidding-related information referred to in Article 19-2 (2) of the Act shall be submitted only where not more than 20 business entities participate in bidding and the estimated price is more than or equal to the following amount:
1. Bidding on a construction project, as defined in subparagraph 4 of Article 2 of the Framework Act on the Construction Industry: 5 billion won;
2. Bidding on any construction project other than subparagraph 1: 500 million won;
3. Bidding on purchase of goods or provision of services: 500 million won.
(3) Bidding-related information referred to in Article 19-2 (3) of the Act means the following matters:
1. The agency ordering bid and the bidding agency;
2. Kind and methods of bidding;
3. Date and details of the bidding announcement;
4. Estimated prices, expected prices and low-end price;
5. Number of bidding participants;
6. Bidding details by bidding participants;
7. Profile of the successful bidder;
8. Successful bid price;
9. Number of failed bid and number of increase in the expected price;
10. Other information requested by the Fair Trade Commission to analyze the signs of possible bidding rigging.
(4) The heads of the public institutions referred to in the subparagraphs of paragraph (1) shall submit the matters referred to in the subparagraphs of paragraph (3) to the Fair Trade Commission through the Korea On-line e-Procurement System established under Article 8 (2) of the Government Procurement Act within 30 days from the date on which a successful bidder is determined: Provided, That the head of a public institution referred to in each subparagraph of paragraph (1), which has not requested the Administrator of the Public Procurement Service to conclude a contract, may submit such information by entering it directly in the information processing system operated by the Fair Trade Commission. <Amended by Presidential Decree No. 20884, Jun. 25, 2008>
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 35 (Eligibility Criteria, etc. for Leniency Program, etc.)
(1) Eligibility criteria for mitigation of corrective measures or for full or partial exemption from penalty surcharges referred to in Article 22-2 (4) of the Act are as follows: <Amended by Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 20884, Jun. 25, 2008; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 23475, Dec. 30, 2011; Presidential Decree No. 23864, Jun. 19, 2012; Presidential Decree No. 27529, Sep. 29, 2016>
1. A person who voluntarily reports to the Fair Trade Commission before the Commission commences an investigation may be fully exempted from the penalty surcharge and corrective measures, if all of the following conditions are satisfied:
(a) The person must be the first person who alone provides evidence necessary to substantiate illegal cartel conduct: Provided, That evidence jointly provided by two or more business entities involved in the cartel conduct shall be deemed to be provided by a single business entity, if the business entities are affiliates substantially controlling each other, or are involved in a division or transfer of a business, meeting requirements prescribed by the Fair Trade Commission;
(b) The person shall have voluntary reported the illegal cartel conduct under circumstances that the Fair Trade Commission fails to obtain information on the illegal cartel conduct or fails to obtain sufficient evidence necessary to substantiate the illegal cartel conduct;
(c) The person shall have cooperated fully with the Fair Trade Commission until the Commission completes an investigation, in such manners as stating all facts related to the illegal cartel conduct and submitting the relevant materials;
(d) The person shall have ceased to engage in the illegal cartel conduct;
2. A person who cooperates in an investigation commenced by the Fair Trade Commission may be fully exempted from the penalty surcharge, and corrective measures may be mitigated, if all of the following conditions are satisfied:
(a) The person shall have cooperated in the investigation under circumstances that the Fair Trade Commission fails to obtain information on the illegal cartel conduct or fails to obtain sufficient evidence necessary to substantiate the illegal cartel conduct;
(b) The person shall be eligible under subparagraph 1 (a), (c), and (d);
(c) Deleted. <by Presidential Decree No. 20884, Jun. 25, 2008>
3. A person who has voluntarily reported to the Fair Trade Commission before the Commission commences an investigation or a person who cooperates in an investigation commenced by the Fair Trade Commission may be exempted from the penalty surcharge by 50 percent, and corrective measures may be mitigated, if all of the following conditions are satisfied:
(a) The person shall be the second person who alone provides evidence necessary to substantiate the illegal cartel conduct: Provided, That evidence jointly provided by two or more business entities involved in the cartel conduct shall be deemed to be provided by a single business entity, if the business entities are affiliates substantially controlling each other, or are involved in a division or transfer of a business, meeting requirements prescribed by the Fair Trade Commission;
(b) The person shall be eligible under subparagraph 1 (c) and (d);
(c) and (d) Deleted; <by Presidential Decree No. 20884, Jun. 25, 2008>
4. Where a person who is already subject to a penalty surcharge or corrective measure due to his/her illegal cartel conduct meets the conditions provided for in the items of subparagraph 1 or 2 with respect to other illegal cartel conduct in which he/she is involved, the penalty surcharge may be fully or partially exempted and the corrective measure may be mitigated, against such other illegal cartel conduct;
5. Even if a person is eligible under any of subparagraphs 1 through 4, the person is not eligible for full or partial exemption from any corrective measure or penalty surcharge, if the person has forced other business entity to participate in or not to cease to engage in the illegal cartel conduct against its will, or has engaged in any illegal cartel conduct repeatedly during a specific period in violation of Article 19 (1) of the Act;
6. A person, as referred to in subparagraph 3, is not eligible for full or partial exemption from any corrective measure or penalty surcharge, if any of the following is applicable:
(a) The person shall be one of two or more business entities that have engaged in the illegal cartel conduct;
(b) The person shall have voluntarily reported or have cooperated in an investigation after two years from the date on which a person, as referred to in subparagraph 1 or 2, voluntarily reported or cooperated in an investigation.
(2) Circumstances in which information related to voluntary reporting, such as identity of a person who has voluntarily reported or has cooperated in an investigation, can be provided for a third person pursuant to Article 22-2 (3) of the Act are as follows: <Amended by Presidential Decree No. 20360, Nov. 2, 2007; Presidential Decree No. 27529, Sep. 29, 2016>
1. Where the person, etc. who has voluntarily reported consents to the provision of the information;
2. Where the information is necessary to file and perform litigation related to the relevant case.
(3) The Fair Trade Commission may separately deliberate or decide upon the relevant case to ensure that the identity of a voluntary reporter or person who has cooperated in an investigation is not divulged, if requested by the voluntary report, etc. <Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007>
(4) The Fair Trade Commission shall determine and publicly notify the specific extent of mitigation and exemption for reporters, etc., the detailed procedures for administering the leniency program, the methods for providing evidence, criteria for determining repeated violations of the Act, and other related matters. <Amended by Presidential Decree No. 23475, Dec. 30, 2011>
[This Article Wholly Amended by Presidential Decree No. 18768, Mar. 31, 2005]
CHAPTER V PROHIBITION ON UNFAIR TRADE PRACTICES AND PROVISION OF UNDUE BENEFITS TO RELATED PARTIES
 Article 36 (Designation of Unfair Trade Practices)
(1) Types of and criteria for the unfair trade practices referred to in Article 23 (3) of the Act are as specified in attached Table 1-2. <Amended by Presidential Decree No. 22160, May 14, 2010; Presidential Decree No. 25173, Feb. 11, 2014>
(2) The Fair Trade Commission may determine and publicly notify detailed guidelines to apply the types of and criteria for the unfair trade practices referred to in paragraph (1) to specific business areas or practices, where deemed necessary. In such cases, the Fair Trade Commission shall seek opinions from the heads of relevant administrative agencies in advance.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 37 (Fair Competition Covenant)
(1) Upon receipt of a request for examination of a fair competition covenant under Article 23 (6) of the Act, the Fair Trade Commission shall notify the requesting person of the results of its examination within 60 days after the receipt of the request for examination. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 25173, Feb. 11, 2014>
(2) Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 38 (Prohibition on Provision, etc. of Undue Benefits to Related Parties)
(1) Deleted. <by Presidential Decree No. 28197, Jul. 17, 2017>
(2) "Affiliate whose shares are held by a related party in at least the percentage prescribed by Presidential Decree" in the former part of Article 23-2 (1) of the Act means an affiliate in which case the same person alone or together with his/her relatives (excluding persons excluded from persons related to the same person under Article 3-2 (1)), holds at least 30 percent (or 20 percent in the case of a company which is not a listed corporation) of the issued shares.
(3) Types of or criteria for the acts provided for in the subparagraphs of Article 23-2 (1) of the Act are as specified in attached Table 1-3.
(4) "Transactions prescribed by Presidential Decree" in Article 23-2 (2) of the Act mean transactions as specified in attached Table 1-4.
[This Article Newly Inserted by Presidential Decree No. 25173, Feb. 11, 2014]
 Article 38-2 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>
CHAPTER VI BUSINESS ENTITIES' ORGANIZATION
 Article 39 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 40 (Authorization, etc. for Competition-Restricting Practices of Business Entities' Organization)
(1) A business entities' organization that intends to obtain authorization to engage in the competition-restricting practice provided for in Article 26 (1) 1 of the Act pursuant to Article 26 (2) of the Act shall file an application, which contains the following matters and shall be accompanied by the documents attesting the necessity of such competition-restricting conduct, with the Fair Trade Commission: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Reasons for engaging in the competition-restricting practice and details of such conduct;
2. Criteria for and scope of the participating business entities.
(2) Articles 24-2 through 29, 30 (3), (4) and (5), 31, and 32 shall apply mutatis mutandis to authorization to engage in competition-restricting practices. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 16221, Mar. 31, 1999>
 Article 41 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 42 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>
CHAPTER VII RESTRICTION ON PRACTICE OF RESALE PRICE MAINTENANCE
 Article 43 (Literary Works Eligible for Practice of Resale Price Maintenance)
"Literary works prescribed by Presidential Decree" in Article 29 (2) of the Act mean publications (including electronic publications) determined by the Fair Trade Commission after consulting with the heads of related central administrative agencies among literary works, as defined in Article 2 of the Copyright Act. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 16221, Mar. 31, 1999; Presidential Decree No. 18768, Mar. 31, 2005>
 Article 44 (Procedures for Designation of Goods Eligible for Practice of Resale Price Maintenance)
(1) A business entity that intends to have goods designated as eligible for the practice of resale price maintenance pursuant to Article 29 (3) of the Act shall file an application containing the following matters with the Fair Trade Commission: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Its business activities;
2. Results of its operating activities for the most recent one year;
3. Details about the relevant goods;
4. Distribution channels of the relevant goods and sales price trends in each stage of distribution for the most recent one year;
5. Distributors’ organization for the relevant goods;
6. Reasons for applying for designation.
(2) The application referred to in paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Documents attesting that the practice of resale price maintenance of the relevant goods does not unfairly undermine the interest of general consumers;
2. Document attesting that the practice of resale price maintenance satisfies the conditions referred to in each subparagraph of Article 29 (2) of the Act.
 Articles 45 and 46 Deleted. <by Presidential Decree No. 16221, Mar. 31, 1999>
 Article 46-2 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>
CHAPTER VIII (Articles 47 and 48) Deleted.
CHAPTER IX OPERATION OF THE FAIR TRADE COMMISSION
 Article 49 (Organization of Sub-Committees)
(1) Not more than five sub-committees shall be established in the Fair Trade Commission pursuant to Article 37-2 of the Act. <Amended by Presidential Decree No. 22160, May 14, 2010>
(2) The chairperson of the Fair Trade Commission (hereinafter referred to as the "chairperson") may designate members of each sub-committee and change the members, if necessary.
(3) Where a member of a sub-committee has a reason to be disqualified or challenged or to voluntarily refrain with regard to a specific case as provided for in Article 44 of the Act, the chairperson may refer the case to another sub-committee or may designate a member of other sub-committee as a member of the first-mentioned sub-committee only with regard to the relevant case.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 50 (Functional Division of Sub-Committees)
The chairperson may allocate functions to each sub-committee and change such functions, if necessary.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 51 (Challenge to, or Voluntary Refrainment by, Commissioners)
(1) A person who intends to challenge a commissioner pursuant to Article 44 (2) of the Act shall make a request for challenge stating the grounds therefor to the chairperson.
(2) Grounds for challenge shall be attested, in writing, within three days from the date of a request for the challenge.
(3) A challenged commissioner shall, without delay, submit a written opinion on the challenge to the chairperson.
(4) A commissioner who intends to voluntarily refrain pursuant to Article 44 (3) of the Act shall obtain permission from the chairperson.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 52 (Establishment of Regional Offices)
The Fair Trade Commission may establish Regional Offices, as prescribed by Presidential Decree, to perform fair trade-related affairs in respective regions.
 Article 53 (Allowances, etc. of Commissioners)
Non-standing commissioners of the Fair Trade Commission may be paid allowances and other necessary expenses within budgetary limits.
 Article 53-2 (Qualifications for Members of Fair Trade Dispute Mediation Council)
(1) "Public official meeting the requirements prescribed by Presidential Decree" in Article 48-3 (4) 1 of the Act means a public official of Grade IV or higher rank.
(2) "Period prescribed by Presidential Decree" in Article 48-3 (4) 2 through 4 of the Act means seven years.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-3 (Meetings of Council)
(1) To convene a meeting, the chairperson of the Fair Trade Dispute Mediation Council (hereinafter referred to as the "Council") established under Article 48-3 (1) of the Act shall give the members of the Council written notice containing the date and venue of the meeting and agenda items by seven days prior to the date set for the meeting: Provided, That the foregoing shall not apply in the case of emergency.
(2) The meetings of the Council shall not be open to public: Provided, That the chairperson of the Council may allow the disputing parties and other interested parties to attend a meeting, if deemed necessary.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-4 (Application, etc. for Mediation)
(1) A person who intends to apply for mediation of a dispute pursuant to Article 48-6 (1) of the Act shall submit a document stating the following matters (hereinafter referred to as "application for mediation") to the Fair Trade Commission or the Council: <Amended by Presidential Decree No. 22160, May 14, 2010>
1. Names of the claimant and the respondent (where disputing parties are corporations, the titles of the corporations, addresses of their main offices, and the names and addresses of their representatives);
2. Name and address of his/her agent, if hired;
3. The purport of and the reason for applying for mediation.
(2) An application for mediation shall be accompanied by the following documents:
1. Documents supporting the reasons for filing the application for mediation and relevant facts;
2. Power of attorney, if the application is filed by an agent;
3. Other supporting documents or materials necessary to mediate the relevant dispute.
(3) "Act meeting the criteria prescribed by Presidential Decree" in Article 48-6 (1) 1 of the Act means any of the following acts suspected of having violated the Act: <Amended by Presidential Decree No. 22160, May 14, 2010>
1. The act provided for in Article 23 (1) 7 of the Act;
2. The act provided for in subparagraph 1 (a) of attached Table 1-2;
3. The act provided for in subparagraph 2 (c) or (d) of attached Table 1-2;
4. The act provided for in subparagraph 3 (a) of attached Table 1-2 (applicable only to any act that could exclude competitor business entities of its own or of its affiliates by continuing to provide goods or services at a price significantly lower than the cost required for supplying the goods or services without just cause).
(4) Where the Fair Trade Commission or the Council finds it impracticable to verify whether the respondent’s suspected violation of the Act is any of the acts referred to in the subparagraphs of paragraph (3) based on the application for mediation or accompanying documents submitted by the claimant or where the facts about the act, which is the subject matter of the relevant dispute, are not well-defined, the Fair Trade Commission or the Council may require the claimant to submit supplementary materials within a specified period.
(5) "Period prescribed by Presidential Decree" in Article 48-6 (2) of the Act means ten days. In such cases, the period required for submitting supplementary materials under paragraph (4) shall be disregarded.
(6) Where the Council receives an application for mediation directly from the claimant, the Council shall immediately forward a copy of the application for mediation to the Fair Trade Commission. <Amended by Presidential Decree No. 22160, May 14, 2010>
(7) Upon receipt of an application for mediation, the Council shall issue a filing receipt to the claimant and shall forward a copy of the application for mediation to the respondent. In such cases, the Council may transmit such filing receipt or copy in electronic document, as defined in subparagraph 7 of Article 2 of the Electronic Government Act. <Amended by Presidential Decree No. 22160, May 14, 2010>
(8) Where the chairperson of the Council deems an application for mediation filed under Article 48-6 of the Act incomplete, the chairperson may require the application to be supplemented within a specified period. In such cases, the period for supplementation shall not be included in the period prescribed in Article 48-7 (4) 2 of the Act. <Newly Inserted by Presidential Decree No. 22160, May 14, 2010>
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-5 (Designation of Representatives)
(1) Several business entities may designate not more than three representatives from among claimants to file an application for mediation of the same dispute. <Amended by Presidential Decree No. 22160, May 14, 2010>
(2) Where claimants have not designated representatives as prescribed in paragraph (1), the chairperson of the Council may advise the claimants to designate their representatives.
(3) Claimants shall give notice to the chairperson of the Council upon designating or changing any of their representatives.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-6 (Verifying Fact, etc. from Disputing Parties)
(1) To request disputing parties to appear pursuant to Article 48-7 (2) of the Act, the Council shall notify the disputing parties of the time and venue by seven days prior to the date on which they are required to appear: Provided, That the foregoing shall not apply in an emergency situation or if consented by disputing parties required to appear.
(2) Where there exist extenuating circumstances that prevent any of the disputing parties notified as prescribed in paragraph (1) from appearing before the Council, it may notify the Council in writing beforehand.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-7 (Giving Notice of Lawsuit Filed)
Where any of the disputing parties files a lawsuit concerning their dispute applied for mediation, it shall immediately inform the Council of such fact.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-8 (Mediation, etc.)
(1) Where the Council rejects an application for mediation pursuant to Article 48-7 (3) of the Act, or terminates the mediation process pursuant to paragraph (4) 2 or 3 of the same Article, the Council shall prepare a report on termination of mediation stating the following matters and shall submit a copy of the report and relevant documents to the Fair Trade Commission:
1. General information about the disputing parties;
2. Outlines of the dispute;
3. Main issues for mediation;
4. Reasons for rejecting the application for mediation or terminating the mediation process.
(2) Where disputing parties reach an agreement through mediation, the Council shall prepare a settlement agreement stating the following matters, and shall submit a copy of the settlement agreement and relevant documents to the Fair Trade Commission:
1. Matters provided for in paragraph (1) 1 through 3;
2. Results of mediation.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 53-9 (Detailed Rules for Operation of Council)
Except as otherwise expressly provided for in this Decree, matters necessary to operate the Council and its organization shall be determined by the chairperson of the Council by the resolution of the Council. <Amended by Presidential Decree No. 22160, May 14, 2010>
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
CHAPTER X PROCEDURES FOR INVESTIGATIONS, ETC.
 Article 54 (Method of Reporting Violations)
A person who intends to report as prescribed in Article 49 (2) of the Act shall submit a document stating the following matters to the Fair Trade Commission: Provided, That the person may report by telephone or orally in case of emergeny or exceptional circumstances: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Hi/her name and address;
2. Address of the alleged violator, name of the representative, and business activities;
3. Details of the violation committed by the alleged violator;
4. Other matters that clarify the details of the alleged violation.
 Article 55 (Investigation, etc. by the Fair Trade Commission)
(1) The Fair Trade Commission shall issue a notice of summon specifying the title of the case, name of the other party, date, time and place, and other matters in order to summon relevant parties, etc. to seek their opinions pursuant to Article 50 (1) 1 of the Act. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001>
(2) The designation of an expert witness provided for in Article 50 (1) 2 of the Act shall be made in writing specifying the title of the case, name of the expert witness, the period and objectives of seeking expert opinions, and other details. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001>
(3) An order requiring a business entity or business entities' organization or its executive or employee to report the cost and its business administration or to submit other necessary materials or articles under Article 50 (1) 3 of the Act shall be issued in writing specifying the title of the case, submission due date, and materials, etc, to be reported or submitted: Provided, That business entities, etc. that attend the meeting of the Fair Trade Commission may report orally. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001>
 Article 56 (Investigation, etc. by Public Officials)
(1) "Designated place" in Article 50 (2) of the Act means an office or place of business of a business entity or business entities' organization and a place specified in a notice of summon issued by the Fair Trade Commission. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001>
(2) An order to submit materials or articles or the keeping of the submitted materials or articles in custody under Article 50 (3) of the Act shall be issued or made only when the evidence might be destroyed. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001>
 Article 57 (Payment of Expenses)
If the Fair Trade Commission seeks opinions from an interested party or a witness under Article 50 (1) 1 of the Act, or designates an expert witness under Article 50 (1) 2 of the Act, it may reimburse the interested party or the witness expenses incurred, within budgetary limits: Provided, That the foregoing shall not apply where it seeks opinions at the office or business place of the interested party or witness. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 17176, Mar. 27, 2001>
 Article 57-2 (Application for Postponing Investigation, etc.)
(1) "Causes prescribed by Presidential Decree" in Article 50-3 (1) of the Act mean any of the following:
1. Where a merger, acquisition, or composition is ongoing, a court receivership is filed for, and other equivalent procedures are ongoing;
2. Where accounting books, evidence, and documents are seized or kept in custody by a competent authority;
3. Where a fire or similar incident has hindered substantially the business entity or business entities' organization from operating its business.
(2) A person that intends to have a disposition or an investigation postponed pursuant to Article 50-3 (1) of the Act shall submit a document stating the following matter to the Fair Trade Commission:
1. Name of the business entity or the business entities' organization that intends to have the disposition or the investigation postponed, and the name and address of its representative;
2. The period for which it wants to postpone the disposition or the investigation;
3. The reason for postponing the disposition or the investigation.
[This Article Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005]
 Article 57-3 (Imposition, Collection, etc. of Enforcement Fines)
(1) “Average daily sales prescribed by Presidential Decree" in the main sentence of Article 50-4 (1) of the Act means the amount classified as follows divided by the number of days prescribed in the relevant subparagraph (including non-business days) based on the business year in which the last day of the period prescribed for complying with the second order to submit a report, materials, or articles issued by the Fair Trade Commission by the decision of a subcommittee meeting referred to in Article 49 (1) (hereafter referred to as "order to report and submit" in this Article) falls:
1. If the total business period is not less than three years as at the last day of the immediately preceding business year: An aggregate amount of the sales of the immediately preceding three business years;
2. If the total business period is less than three years as at the last day of the immediately preceding business year: An aggregate amount of the sales from the commencement of business until the last day of the immediately preceding business year.
(2) Criteria for imposing enforcement fines under Article 50-4 (1) of the Act shall be as specified in attached Table 1-5.
(3) Where Article 23-4 applies mutatis mutandis to the imposition, collection, etc. of enforcement fines pursuant to Article 50-4 (2) of the Act, "Article 17-3 of the Act" shall be construed as "Article 50-4 of the Act", and "a corrective measure" in Article 23-4 (1) and (7) shall be construed as "an order to report and submit", and "90 days" in paragraph (7) thereof as "30 days".
[This Article Newly Inserted by Presidential Decree No. 28352, Sep. 29, 2017]
 Article 58 (Procedures for Recommendation of Correction)
A recommendation of correction provided for in Article 51 (1) of the Act shall be made in writing specifying the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>
1. Details of the violation of the Act;
2. Details of the recommendation;
3. Period for correction;
4. Deadline for notification as to acceptance or refusal of the recommendation;
5. Measures to be taken in the case of refusal of the recommendation.
 Article 58-2 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>
 Article 59 (Procedures for Filing Objection, Processing Periods, etc.)
(1) A person who intends to file an objection pursuant to Article 53 (1) of the Act shall file an application stating the subject matter or details of the objection, reasons, etc. with the Fair Trade Commission, along with documents necessary to support the reasons and details of the objection.
(2) The Fair Trade Commission may require an application or supporting documents filed under paragraph (1) to be supplemented within a specified period, if found incomplete. In such cases, the period for supplementation (including the dates on which an order to supplement is sent and on which supplemented documents arrive at the Fair Trade Commission) shall not be included in the period prescribed in Article 53 (2) of the Act.
(3) "Unavoidable causes" in the proviso to Article 53 (2) of the Act mean the following:
1. Where an independent economic analysis, such as investigating and examining the scope or structure of the market, market shares, and trends in exports or imports, is required to determine whether the measure taken is illegal or unreasonable;
2. Where an intensive legal analysis or examination is required to determine whether the measure taken is illegal or unreasonable;
3. Where a new claim made or new materials submitted in the deliberation process of the objection filed need a long period for investigations;
4. Where the parties, interested parties, etc. do not cooperate in the investigation by exercising the right to remain silence or by failing to submit materials in time;
5. Where extending the period is inevitable in circumstances equivalent to subparagraphs 1 through 4.
[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 60 (Suspending Enforcement of Orders to Take Corrective Measures)
A person who intends to request the enforcement of a corrective measure to be suspended or a decision suspending the enforcement of a corrective measure to be revoked as prescribed in Article 53-2 of the Act shall make a written request stating the purport and grounds to the Fair Trade Commission, along with documents necessary to explain the grounds for and details of the request.
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
CHAPTER XI IMPOSITION, COLLECTION, ETC. OF PENALTY SURCHARGES
 Article 61 (Criteria for Imposing Penalty Surcharges)
(1) Criteria for imposing the penalty surcharges provided for in Articles 6, 17, 22, 24-2, 28, and 31-2 of the Act are as specified in attached Table 2. <Amended by Presidential Decree No. 18356, Apr. 1, 2004; Presidential Decree No. 21492, May 13, 2009; Presidential Decree No. 27529, Sep. 29, 2016>
(2) Deleted. <by Presidential Decree No. 18356, Apr. 1, 2004>
(3) Except as otherwise expressly provided for in this Decree, detailed criteria necessary to impose the penalty surcharges shall be determined and publicly notified by the Fair Trade Commission.
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 61-2 (Collection of Penalty Surcharges and Additional Dues)
(1) To impose a penalty surcharge pursuant to Article 55-3 (1) of the Act, the Fair Trade Commission shall give a relevant person written notice stating the type of the violation and the amount of the penalty surcharge.
(2) A person in receipt of written notice given under paragraph (1) shall pay a penalty surcharge to a collecting agency designated by the Fair Trade Commission within 60 days from the receipt of the written notice: Provided, That if the person is unable to pay the penalty surcharge within said period due to a natural disaster or any unavoidable reason, the person shall pay such penalty surcharge within 30 days from the date on which the reason ceases to exist.
(3) Deleted. <by Presidential Decree No. 18768, Mar. 31, 2005>
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 62 (Standards for Permitting Extension of Deadline for Paying Penalty Surcharges and Payment in Installments and Limits)
(1) "Amount prescribed by Presidential Decree" in Article 55-4 (1) of the Act means either the sales prescribed in Article 9 multiplied by one percent or one billion won.
(2) A deadline for paying penalty surcharges referred to in Article 55-4 (1) of the Act may be extended by up to two years after the expiration of the deadline for payment. <Amended by Presidential Decree No. 25503, Jul. 21, 2014>
(3) Where payment of penalty surcharges in installments is permitted under Article 55-4 (1) of the Act, the interval between periods of installments shall not exceed six months, and the number of installments shall not exceed six times. <Amended by Presidential Decree No. 25503, Jul. 21, 2014>
(4) The Fair Trade Commission shall take into account the following in order to grant a person on whom a penalty surcharge is imposed (hereafter referred to as "person liable to pay penalty surcharges" in this paragraph) an extension of a deadline for payment, or permit the person to pay the penalty surcharge in installments pursuant to Article 55-4 (1) 3 of the Act: <Newly Inserted by Presidential Decree No. 27034, Mar. 8, 2016>
1. Whether the person liable to pay the penalty surcharge sustains a net loss consecutively for the three immediately preceding business years as at the time of filing an application for an extension of a deadline for payment or for payment in installments;
2. Whether the person liable to pay the penalty surcharge has a debt exceeding twice the total capital as at the time of filing an application for an extension of a deadline for payment or for payment in installments;
3. Other matters determined and publicly notified by the Fair Trade Commission, similar to subparagraph 1 or 2.
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 63 (Applying for Extension of Deadline for Paying Penalty Surcharges and for Payment in Installments)
An application for an extension of the deadline for paying penalty surcharges or for payment in installments under Article 55-4 (2) of the Act shall be made in the Form determined by the Fair Trade Commission.
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
 Article 64 (Rate of Additional Dues)
The additional dues collectible under Article 55-6 (1) of the Act shall be the amount of the penalty surcharge in arrears multiplied by 75/1,000 per annum. <Amended by Presidential Decree No. 27034, Mar. 8, 2016>
[This Article Newly Inserted by Presidential Decree No. 23864, Jun. 19, 2012]
 Article 64-2 (Demand)
(1) The demand referred to in Article 55-6 (2) of the Act shall be made in writing within 15 days after the expiration of the deadline for payment. <Amended by Presidential Decree No. 18768, Mar. 31, 2005>
(2) Where a demand notice is issued pursuant to paragraph (1), a deadline for paying a penalty surcharge in arrears shall be within ten days from the date on which the demand notice is issued.
[This Article Wholly Amended by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 64-3 (Entrustment of Disposition on Default)
(1) To entrust the Commissioner of the National Tax Service with the work of taking dispositions on default pursuant to Article 55-6 (3) of the Act, the Fair Trade Commission shall do so in writing, along with the following documents: <Amended by Presidential Decree No. 18768, Mar. 31, 2005>
1. A written resolution made by the Fair Trade Commission;
2. A written resolution made to collect revenues and notices;
3. A demand notice for payment of penalty surcharges.
(2) The Commissioner of the National Tax Service entrusted with the work of taking dispositions on default under paragraph (1) shall notify the Fair Trade Commission in writing of the following matters within 30 days from the date on which the relevant reason occurs:
1. Where the work of taking the disposition on default is finished, the date the work is finished, and other necessary matters;
2. Where the Fair Trade Commission asks to keep it informed of progress in the work, the progress in the work.
[This Article Newly Inserted by Presidential Decree No. 16221, Mar. 31, 1999]
 Article 64-4 (Procedures for Requesting Information on Imposition of National Taxes)
(1) The Fair Trade Commission shall, when it requests the Commissioner of the National Tax Service to furnish information pertaining to the imposition of national taxes under Article 55-6 (4) of the Act, make a written request to the Commissioner, along with the following documents: <Amended by Presidential Decree No. 18768, Mar. 31, 2005>
1. A written resolution made by the Fair Trade Commission;
2. A written resolution made to collect revenues and notices;
3. A demand notice for payment of taxes.
(2) Upon receipt of a written request made under paragraph (1), the Commissioner of the National Tax Service shall furnish information pertaining to the imposition of national taxes in writing within 30 days after receiving the written request, except in special circumstances.
[This Article Newly Inserted by Presidential Decree No. 17176, Mar. 27, 2001]
 Article 64-5 (Rate of Additional Payment on Refund of Penalty Surcharges)
The additional payment on refund of penalty surcharges under Article 55-7 of the Act shall be the amount calculated by multiplying penalty surcharges to be refunded by the interest rate specified in Article 43-3 (2) of the Enforcement Decree of the Framework Act on National Taxes. <Amended by Presidential Decree No. 18768, Mar. 31, 2005; Presidential Decree No. 23864, Jun. 19, 2012; Presidential Decree No. 25503, Jul. 21, 2014; Presidential Decree No. 27034, Mar. 8, 2016>
[This Article Newly Inserted by Presidential Decree No. 17176, Mar. 27, 2001]
 Article 64-6 (Disposition on Deficits)
"Reason prescribed by Presidential Decree" in Article 55-8 (1) 6 of the Act means any of the following:
2. Where it is deemed that redemption is impossible for inevitable reasons in circumstances determined and publicly notified by the Fair Trade Commission.
[This Article Newly Inserted by Presidential Decree No. 20360, Nov. 2, 2007]
 Article 64-7 (Payment of Rewards)
(1) Violations of the Act that are subject to rewards under Article 64-2 of the Act mean any of the following: <Amended by Presidential Decree No. 18921, Jun. 30, 2005; Presidential Decree No. 21148, Dec. 3, 2008; Presidential Decree No. 22003, Jan. 27, 2010; Presidential Decree No. 22160, May 14, 2010; Presidential Decree No. 28352, Sep. 29, 2017>
1. The illegal cartel conduct provided for in each subparagraph of Article 19 (1) of the Act;
2. Unfair trade practices in newspaper business (referring to the business of publishing or selling newspapers, as defined in subparagraph 1 (a) through (d) of Article 2 of the Act on the Promotion of Newspapers, Etc.) among those provided for in Article 23 (1) 1 through 5 of the Act;
3. Unfairly soliciting customers of competitors to make transactions with itself among the act provided for in Article 23 (1) 3 of the Act;
4. Unfairly coercing executives and employees of his/her company or affiliates to purchase or sell goods or services of his/her company or affiliates among the act provided for in Article 23 (1) 3 of the Act;
5. Unfair trade practices engaged in the conduct of retail business in a large store (referring to the business of selling various daily necessities at the same store with the total area of not less than the size determined by the Fair Trade Commission) among those provided for in Article 23 (1) 4 of the Act;
6. Unfair trade practices provided for in Article 23 (1) 7 of the Act;
6-2. Providing undue benefits to a related party provided for in Article 23-2 (1) of the Act;
7. Prohibited acts of business entities' organizations provided for in Article 26 (1) 1 through 3 of the Act.
(2) Persons eligible for receiving rewards under Article 64-2 of the Act shall be those who report or provide information on any act provided for in each subparagraph of paragraph (1) and first submit evidentiary materials to substantiate such act: Provided, That the business entities who violate the Act are excluded herefrom.
(3) The Fair Trade Commission shall pay a reward to any person who reports or provides information on an act of violating the Act within three months from the date on which it is decided that the act in question is in violation of the Act (where an objection is filed thereagainst, the date on which the adjudication thereon is rendered), except in special circumstances.
(4) A public official who makes an investigation into a violation the Act in relation to the payment of a reward shall neither divulge the identity of the person who reports or provides information on the violation and other matters related to the report and information nor provide any third person with them.
(5) The Fair Trade Commission shall determine and publicly notify detailed criteria for paying rewards by the types of violation, taking into account such factors as the gravity of each violation of the Act and the admissibility of evidence.
(6) A deliberative committee on reports and rewards (hereafter referred to as the "deliberative committee" in this Article) may be established under the Fair Trade Commission to deliberate on matters relating to the payment of rewards.
(7) Matters relating to the establishment and operation of the deliberative committee and other matters necessary to pay rewards shall be determined and publicly notified by the Fair Trade Commission.
[This Article Newly Inserted by Presidential Decree No. 18768, Mar. 31, 2005]
 Article 64-8 (Re-Examination of Regulations)
The Fair Trade Commission shall examine the appropriateness of the following matters every three years, beginning on each base date specified in the following (referring to the period that ends on the day before the base date of every third year), and shall take measures, such as making improvements: <Amended by Presidential Decree No. 28197, Jul. 17, 2017; Presidential Decree No. 28471, Dec. 12, 2017>
1. Scope of companies that can be excluded from a business group pursuant to Article 3-2: January 1, 2017;
2. Reporting, etc. on establishment of, and conversion into, a holding company pursuant to Article 15: January 1, 2017;
3. Resolutions by the board of directors on large-scale internal trading and disclosure pursuant to Article 17-8: January 1, 2017;
4. Disclosure of material facts by unlisted companies, etc. pursuant to Article 17-10: January 1, 2017;
5. Disclosure of the status, etc. of business groups pursuant to Article 17-11: January 1, 2017;
6. Reporting, etc. on business combination pursuant to Article 18: January 1, 2017;
7. Reporting on the shareholding status, etc. pursuant to Article 20: January 1, 2017;
8. Procedures, etc. for approval of cartel conduct pursuant to Article 30: January 1, 2017;
9. Eligibility criteria, etc. for leniency program, etc. pursuant to Article 35: January 1, 2017;
10. Related parties’ shareholding ratios in affiliates pursuant to Article 38 (2): January 1, 2017;
11. Procedures for authorization to engage in competition-restricting practices by business entities' organizations pursuant to Article 40: January 1, 2017;
12. Substantially advantageous conditions provided for in the provisos to subparagraphs 1 and 3 of attached Table 1-3, or the substantial scale provided for in the proviso to subparagraph 4 of the same Table: January 1, 2017;
13. Transactions not subject to Article 23-2 (1) 4 of the Act pursuant to attached Table 1-4: January 1, 2017.
[This Article Wholly Amended by Presidential Decree No. 27751, Dec. 30, 2016]
 Article 64-9 (Processing of Personally Identifiable Information)
The Fair Trade Commission may process data that contains a resident registration number, a passport number, or an alien registration number referred to in subparagraph 1, 2, or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is inevitable to perform the following affairs: <Amended by Presidential Decree No. 23864, Jun. 19, 2012>
1. Affairs related to investigations into the violations of the Act under Article 49 of the Act;
2. Affairs related to the payment of rewards under Article 64-7.
[This Article Newly Inserted by Presidential Decree No. 23475, Dec. 30, 2011]
 Article 65 (Criteria for Imposing Administrative Fines)
(1) Criteria for imposing the administrative fines provided for in Article 69-2 (1) 1 and 2 of the Act are as specified in attached Tables 3 and 4, respectively.
(2) The Fair Trade Commission may reduce or increase an administrative fine assessed pursuant to attached Tables 3 and 4 by 1/2 of the administrative fine, taking into account the severity and consequence of the relevant violation, the reason for such violation, etc.: Provided, That the amount so increased shall not exceed the maximum of the administrative fine specified in Article 69-2 (1) of the Act.
[This Article Wholly Amended by Presidential Decree No. 21492, May 13, 2009]
 Article 66 (Enforcement Regulations)
Matters necessary to enforce this Decree shall be determined and publicly notified by the Fair Trade Commission.
[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Matters in Settlement)
Matters that the Mayor/Do Governor is investigating into, or recommending the correction under the former Articles 34 and 35 as at the time this Decree enters into force, shall be subject to the former provisions.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 13842, Feb. 20, 1993>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1993.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 14566, Apr. 1, 1995>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Exception Recognized Investment) Any investment for which an exception is recognized by the Fair Trade Commission under subparagraph 3 of the former Article 17-2, as at the time this Decree enters into force, shall be subject to the former provisions.
(3) (Applicability) The amended provisions of subparagraph 3 of Article 17-2 shall apply exclusively to the new shares acquired or held after this Decree enters into force.
ADDENDA <Presidential Decree No. 15328, Mar. 31, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1997.
Article 2 (Applicability to Filing Financial Statements, Audit Reports, etc.)
The amended provisions of Articles 3-2 (4), 17 (3) and 17-4 (2) shall apply from January 1, 1998.
Article 3 (Transitional Measures concerning Contributions for Improvement of International Competitiveness of Enterprises)
The acquisition or holding of shares or shares recognized by the Fair Trade Commission pursuant to the former provisions of subparagraph 3 of Article 17-2, as at the time this Decree enters into force, shall be subject to the former provisions.
Article 4 (Transitional Measures concerning Sound Ownership-Diversified Companies)
One of the sound ownership-diversified companies as at the time this Decree enters into force shall be deemed to have been recognized by the Fair Trade Commission in accordance with the amended provisions of Article 17-4: Provided, That as respects requirements for the sound ownership-diversified companies, the former provisions of this Decree shall be effective for the duration of three years from the date this Decree enters into force.
Article 5 Omitted.
ADDENDA <Presidential Decree No. 15569, Dec. 31, 1997>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1998.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 15767, Apr. 1, 1998>
This Decree shall enter into force on April 1, 1998: Provided, That the amended provisions of Articles 17-2 through 17-4 shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16221, Mar. 31, 1999>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 1999.
(2) (Transitional Measures concerning Literary Works for which Maintaining Resale Prices is Permitted) The literary works for which maintaining resale prices is permitted under the former provisions as at the time this Decree enters into force shall, notwithstanding the amendment provisions of Article 43, be governed by the former provisions by December 31, 2002.
(3) (Transitional Measures concerning Delinquent Penalty Surcharges) The delinquent penalty surcharges as at the time this Decree enters into force shall, notwithstanding the amended provisions of Article 61-2 (3), shall be dealt with by the former provisions.
ADDENDA <Presidential Decree No. 16430, Jun. 30, 1999>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 1999.
(2) Omitted.
ADDENDUM <Presidential Decree No. 16685, Dec. 31, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16777, Apr. 1, 2000>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 2000: Provided, That the amended provisions of Article 17-2 shall enter into force on April 1, 2001.
(2) (Transitional Measures concerning Debt Guarantees by Investors in Infrastructure Facilities) Where a member company of a conglomerate which invests in any of its affiliates engaged in private investment business in the manner provided for in subparagraph 1 or 2 of Article 4 of the Act on Private Participation in Infrastructure, as at the time this Decree enters into force, guarantees repayment of credits extended by domestic financial institutions to such affiliate, the debt guarantee under the amended provisions of Article 17-5 (2) 7 shall be deemed to have been made.
ADDENDA <Presidential Decree No. 17176, Mar. 27, 2001>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 2001: Provided, That the amended provisions of Article 8 shall enter into force on June 1, 2001.
(2) (Transitional Measures concerning Holding Companies) Any company that satisfies the requirements for a holding company (excluding any company that has filed a report with the Fair Trade Commission as a holding company) by owning a company, as a subsidiary, falling under the standards under the amended provisions of Article 2 (3) as at the time this Decree enters into force, shall file a report thereon with the Fair Trade Commission under Article 15 (1) within four months from the date this Decree enters into force.
ADDENDUM <Presidential Decree No. 17317, Jul. 24, 2001>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 17564, Mar. 30, 2002>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 2002.
(2) Omitted.
(3) (Transitional Measures concerning Exceptions from Limitations on Total Investment of Shareholding) With respect to the shares acquired or held as at the time this Decree enters into force, which satisfy the former Article 17-2 (1) 6, the former provisions shall govern notwithstanding the amended provisions of Article 17-2.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18356, Apr. 1, 2004>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Imposition of Penalty Surcharges) The former provisions shall govern the imposition of penalty surcharges for violations committed before this Decree enters into force.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18768, Mar. 31, 2005>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 2005.
(2) (Transitional Measures concerning Debt Guarantee of Investors in Infrastructure Facilities) Where a company affiliated with a business group subject to limitations on debt guarantees invests in any of its affiliates engaged in private investment business in any of the manners provided for in subparagraphs 1 through 4 of Article 4 of the Act on Public-Private Partnerships in Infrastructure and guarantees repayment of credits extended by domestic financial institutions to such affiliate, as at the time this Decree enters into force, the debt guarantee under the amended provisions of Article 17-5 (2) 7 shall be deemed to have been made.
(3) (Transitional Measures concerning Scope of Business Group subject to Limitations on Total Amount of Shareholding) With respect to a business group which is not subject to the application of Article 10 (1) of the Act pursuant to the former provisions of Article 17 (2) 3 as at the time this Decree enters into force, the former provisions shall prevail for one year from the date this Decree enters into force, notwithstanding the amended provisions of Article 17 (2) 3.
(4) (Transitional Measures concerning Penalty Surcharges Imposed on Illegal Cartel Conduct) In the application of a penalty surcharge to any act committed before this Decree enters into force and terminated before the partially amended Enforcement Decree of the Monopoly Regulation and Fair Trade Act (Presidential Decree No. 20360) enters into force, the former provisions shall prevail.
ADDENDA <Presidential Decree No. 18903, Jun. 30, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2005.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 18921, Jun. 30, 2005>
This Decree shall enter into force on July 1, 2005: Provided, That the amended provisions of Article 64-5 (1) 2 shall enter into force on July 28, 2005.
ADDENDA <Presidential Decree No. 19023, Aug. 31, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 19447, Apr. 14, 2006>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 19574, Jun. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 20166, Jul. 13, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 14, 2007.
Article 2 (Applicability to Resolution by Board of Directors concerning Large-Scale Internal Trading and Disclosure thereof)
The amended provisions of Article 17-8 (2) shall apply to the transactions for the quarter that begins on or after the date this Decree enters into force.
Article 3 (Transitional Measures concerning Change of Standards of Subsidiaries)
For the purposes of the part concerning the prohibition on holding shares of any domestic affiliate, which is not a subsidiary, in the main sentence of Article 8-2 (2) 3 of the Act, if a subsidiary of a holding company becomes a domestic affiliate, which is not a subsidiary, as a consequence of the amendment to Article 2 (3) 2, it shall be deemed that the company is not included in the scope of domestic affiliates of the holding company for one year from the date this Decree enters into force.
Article 4 (Transitional Measures concerning Public Notice of Important Matters by Unlisted Companies, etc.)
Where decisions are made pursuant to the former provisions of Article 17-10 (3) 2 through 5 and (4) 7 as at the time this Decree enters into force, the public notice of such decisions shall be governed by the former provisions, notwithstanding the amended provisions of Article 17-10 (3) through (5).
ADDENDA <Presidential Decree No. 20331, Oct. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 28, 2007. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20360, Nov. 2, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 4, 2007: Provided, That the amended provisions of Article 34 shall enter into force on January 1, 2009.
Article 2 (Applicability to Voluntarily Reporting Persons, etc.)
The amended provisions of Article 35 shall be preferentially applicable to those who voluntarily report or cooperate in an investigation after this Decree enters into force.
Article 3 (Transitional Measures concerning Financial Institutions Related to Debt Guarantee)
With regard to companies which provide debt guarantees under Article 10-2 (2) of the Act in connection with credit of mutual savings banks under the Mutual Savings Banks Act as at the time this Decree enters into force, the former provisions shall apply for two years from the date this Decree enters into force, notwithstanding the amended provisions of Article 17-6.
Article 4 (Transitional Measures concerning Reporting of Business Combination)
With regard to cases where reasons for reporting business combination have already occurred as at the time this Decree enters into force, the former provisions shall apply, notwithstanding the amended provisions of Article 18 (1) through (3).
ADDENDA <Presidential Decree No. 20884, Jun. 25, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2008: Provided, That the amended provisions of Article 34 (4) shall enter into force on January 1, 2009.
Article 2 (Transitional Measures concerning Exclusion of Designation of Business Groups subject to Limitations on Cross Shareholding, etc.)
Where a business group, which has been designated as business group subject to limitations on cross shareholding and business group subject to limitations on debt guarantees under the former provisions as at the time this Decree enters into force, fails to meet the standards for designation prescribed in the amended provisions of Article 17 (1), the business group shall be deemed to have been excluded from designation of a business group subject to limitations on cross shareholding and business group subject to limitations on debt guarantees in accordance with Article 21 (1), (2), and (6) on the date this Decree enters into force.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21148, Dec. 3, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 6, 2008.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21480, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 8, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21492, May 13, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 17-11 and 18 shall enter into force on June 26, 2009.
Article 2 (Applicability)
The amended provisions of Article 35 (1) shall also apply to illegal cartel conduct where a person has voluntarily reported or cooperated in an investigation before the amended provisions of Article 35 (1) pursuant to the main sentence of Article 1 of the Addenda enter into force, but the Fair Trade Commission fails to resolve thereon by the date the same amended provisions enter into force.
ADDENDUM <Presidential Decree No. 21626, Jul. 7, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22003, Jan. 27, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 1, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22160, May 14, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Trading Practices subject to Disclosure of Large-Scale Internal Trading)
The amended provisions of Article 17-8 (3) shall apply beginning with the first trading practice after July 1, 2010.
Article 3 (Applicability to Period of Supplementation of Dispute Mediation)
The amended provisions of Article 53-4 (8) shall apply beginning with the first issue for which an application for dispute mediation is received after this Decree enters into force.
ADDENDUM <Presidential Decree No. 22467, Nov. 2, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23475, Dec. 30, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2012.
Article 2 (Applicability to Resolution by Board of Directors and Disclosure on Large-Scale Internal Trading)
The amended provisions of Article 17-8 (2) and (3) shall apply with regard to an act of trading conducted on or after April 1, 2012.
Article 3 (Applicability to Standards for Mitigation or Exemption, etc. for Those who have Filed Voluntary Report, etc.)
The amended provisions of Article 35 (1) and (4) shall apply where a person files a voluntary report or cooperates in an investigation on or after the date this Decree enters into force.
ADDENDA <Presidential Decree No. 23527, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 23864, Jun. 19, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 22, 2012.
Article 2 (Standards for Mitigation or Exemption, etc. for Voluntary Reporters, etc.)
Amended Article 35 (1) 6 shall begin to apply from a person who files a voluntary report or cooperate in an investigation on or after the date this Decree enters into force.
Article 3 (Applicability to Rate of Additional Penalty Surcharges)
Amended Article 64 shall apply to the portion of the period commencing on or after the date this Decree enters into force: Provided, That the following rates shall apply to the portion of the period prior to the date this Decree enters into force:
1. For the period on or before March 31, 1999: 6/100 per annum;
2. For the period from April 1, 1999 to May 31, 2005: 4/10,000 per annum;
3. For the period from June 1, 2005 to the day immediately before the date this Decree enters into force: 29/100,000 per annum.
Article 4 (Applicability to Rate of Additional Payment for Refund of Penalty Surcharge)
Amended Article 64-5 shall apply to the portion of the period commencing on or after the date this Decree enters into force: Provided, That the following rates shall apply to the portion of the period prior to the date this Decree enters into force:
1. For the period from April 1, 2001 to June 30, 2003: 65/1,000 per annum;
2. For the period from July 1, 2003 to March 31, 2004: 436/10,000 per annum;
3. For the period from April 1, 2004 to March 31, 2005: 425/10,000 per annum;
4. For the period from April 1, 2005 to April 4, 2006: 351/10,000 per annum;
5. For the period from April 5, 2006 to April 8, 2007: 422/10,000 per annum;
6. For the period from April 9, 2007 to July 31, 2008: 475/10,000 per annum;
7. For the period from August 1, 2008 to the day immediately before the date this Decree enters into force: 552/10,000 per annum.
Article 5 (Transitional Measures concerning Criteria for Imposition of Penalty Surcharges against Illegal Cartel Conduct of Business Entities' Organizations)
Notwithstanding amended attached Table 2, the former provisions shall apply to the imposition of penalty surcharges against acts terminated before this Decree enters into force.
Article 6 (Transitional Measures concerning Criteria for Imposition of Administrative Fines concerning Violation of Duty to Report Business Combination)
Notwithstanding amended attached Table 4, the former provisions shall apply to the imposition of administrative fines for any violation committed before this Decree enters into force.
Article 7 Omitted.
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted)
Articles 2 through 13 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 25079, Jan. 14, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 25173, Feb. 11, 2014>
This Decree shall enter into force on February 14, 2014.
ADDENDA <Presidential Decree No. 25503, Jul. 21, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 25, 2014.
Article 2 (Applicability to Extensions of Deadlines for Payment of Penalty Surcharges and Payment in Installments)
The amended provisions of Article 62 (2) and (3) shall also apply to an application for an extension of a deadline for payment of penalty surcharges or payment in installments filed pursuant to Article 55-4 (2) of the Act before this Decree enters into force (excluding where a decision on the extension of a deadline for payment of penalty surcharges or payment in installments has been notified according to such application).
Article 3 (Applicability to Rate of Additional Payment for Refund of Penalty Surcharges)
The amended provisions of Article 64-5 shall apply beginning with the portion after this Decree enters into force, out of the period from the date of paying a penalty surcharge to the date of refund under Article 55-7 of the Act.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 27034, Mar. 8, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Extension of Deadline for Payment of Penalty Surcharges and Payment in Installments)
Amended Article 62 (4) shall also apply to an application for an extension of the deadline for payment of penalty surcharges or for payment in installments filed under Article 55-4 (2) of the Act before this Decree enters into force (excluding where a decision on an extension of the deadline for payment of penalty surcharges or payment in installments is notified following such application).
Article 3 (Applicability to Rate of Additional Penalty Surcharges)
Amended Article 64 shall begin to apply from the portion of the period commencing from the date this Decree enters into force, out of the period beginning on the day following the expiration of a deadline for payment referred to in Article 55-6 of the Act and ending on the date of payment.
Article 4 (Applicability to Rate of Additional Payment for Refund of Penalty Surcharge)
Amended Article 64-5 shall begin to apply from the portion of the period commencing from the date this Decree enters into force, out of the period beginning on the date the penalty surcharge is paid pursuant to Article 55-7 of the Act and ending on the date of refund.
Article 5 (Applicability to Criteria for Imposition of Penalty Surcharges concerning Prohibition on Retaliatory Measures)
Amended subparagraph 2 (a) (vii) of attached Table 2 shall begin to apply from the case where any of the retaliatory measures provided for in Article 23-3 of the Act is taken after this Decree enters into force.
Article 6 (Transitional Measures concerning Exclusion from Business Group)
Notwithstanding amended Article 3-2 (2) 4, the former provisions shall apply to the same person or his/her related person that has met the requirements prescribed in Article 3 before this Decree enters into force, by acquiring or holding the shares of a small or medium venture business under an agreement with a person who controls the business activities of the small or medium venture business.
ADDENDA <Presidential Decree No. 27115, Apr. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27299, Jun. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2016. (Proviso Omitted.)
Articles 2 through 11 Omitted.
Article 12 (Transitional Measures Following Amendment of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act)
Notwithstanding amended Article 17-10 (2) 3 of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act, publication on the changes occurred before this Decree enters into force shall be governed by the former provisions.
Articles 13 through 15 Omitted.
ADDENDA <Presidential Decree No. 27529, Sep. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016: Provided, That the amended Article 2 (1) shall enter into force on July 1, 2017.
Article 2 (Transitional Measures concerning Standards for Holding Companies)
Where a holding company that was established or a company that was converted to a holding company and has filed a report pursuant to Article 15 (1) before the date of enforcement specified in the proviso to Article 1 of the Addenda (hereinafter referred to as "existing holding company") no longer meets the standards for holding companies provided for in amended Article 2 (1) 1 and 2 on such date of enforcement, the holding company shall meet the criteria for the total assets of a holding company provided for in Article 2 (1) 1 and 2 by no later than June 30, 2027, notwithstanding amended Article 2 (1) 1 and 2: Provided, That where an existing holding company files a report on exclusion from a holding company pursuant to Article 15 (4), it shall be excluded from a holding company from the date of filing of the report.
Article 3 (Transitional Measures concerning Exclusion from Designation of Business Groups subject to Limitations on Cross Shareholding, etc.)
Where a business group that has been designated as a business group subject to limitations on cross shareholding or business group subject to limitations on debt guarantees pursuant to Article 14 (1) of the Act before this Decree enters into force no longer meet the criteria for designation prescribed in amended Article 17 (1) as at the time this Decree enters into force, the business group shall be deemed excluded from the designation of a business group subject to limitations on cross shareholding or business group subject to limitations on debt guarantees on the date this Decree enters into force.
Article 4 (Transitional Measures concerning Corrective Measures, Penalty Surcharges, Administrative Fines, and Penalty Provisions)
(1) The former provisions shall govern where penalty surcharges provided for in Article 17 of the Act or penalty provisions provided for in Articles 66 through 68 of the Act apply to any violation committed by an existing holding company excluded from a holding company pursuant to the proviso to Article 2 of the Addenda, its subsidiary, second-tier subsidiary, or third-tier subsidiary before the holding company is excluded from the holding company, notwithstanding amended Article 2 (1).
(2) The former provisions shall govern where the corrective measures provided for in Article 16 (1) 6 or 7-2 of the Act, penalty surcharges provided for in Article 17 or 24-2 of the Act, or recommendations for correction provided for in Article 51 of the Act, penalty provisions provided for in Articles 66 through 68 of the Act, or administrative fines provided for in Article 69-2 of the Act apply to any violation committed before this Decree enters into force by a company that is deemed excluded from the designation of a business group subject to limitations on cross shareholding or business group subject to limitations on debt guarantees pursuant to Article 3 of the Addenda, notwithstanding amended Article 17 (1).
ADDENDA <Presidential Decree No. 27534, Sep. 29, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 28197, Jul. 17, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 19, 2017.
Article 2 (Special Cases concerning Designation of Business Groups subject to Disclosure)
Notwithstanding the amended provisions of Article 21 (4), the Fair Trade Commission shall designate business groups subject to disclosure within two months from the date on which this Decree enters into force.
Article 3 (Transitional Measures concerning Designation and Notification of Designation of former Business Groups subject to Limitations on Cross Shareholding)
Business groups notified of designation as business groups subject to cross shareholding pursuant to the former Article 21 (1) and (2) before this Decree enters into force shall be construed as those notified of designation as business groups subject to disclosure and business groups subject to limitations on cross shareholding pursuant to the amended provisions of the Article 21 (4) and (5) on the date of this Decree enters into force.
ADDENDA <Presidential Decree No. 28352, Sep. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 19, 2017.
Article 2 (Transitional Measures concerning Reporting on Business Combination)
Notwithstanding Article 18 (1) through (3), reporting on a business combination any cause for reporting which occurs before this Decree enters into force shall be governed by the former provisions.
Article 3 (Transitional Measures concerning Adjustment of Penalty Surcharges)
Notwithstanding the amended provisions of subparagraph 2 (b) of attached Table 2, adjustment of penalty surcharges for any violation committed before this Decree enters into force shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 28471, Dec. 12, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2018.
Article 2 Omitted.