MONOPOLY REGULATION AND FAIR TRADE ACT
Wholly Amended by Act No. 4198, Jan. 13, 1990
Amended by Act No. 4501, Nov. 25, 1992
Act No. 4513, Dec. 8, 1992
Act No. 4790, Dec. 22, 1994
Act No. 4831, Dec. 23, 1994
Act No. 5235, Dec. 30, 1996
Act No. 5403, Aug. 30, 1997
Act No. 5454, Dec. 13, 1997
Act No. 5491, Dec. 31, 1997
Act No. 5498, Jan. 8, 1998
Act No. 5503, Jan. 13, 1998
Act No. 5528, Feb. 24, 1998
Act No. 5529, Feb. 28, 1998
Act No. 5559, Sep. 16, 1998
Act No. 5814, Feb. 5, 1999
Act No. 5813, Feb. 5, 1999
Act No. 5825, Feb. 8, 1999
Act No. 6043, Dec. 28, 1999
Act No. 6371, Jan. 16, 2001
Act No. 6651, Jan. 26, 2002
Act No. 6705, Aug. 26, 2002
Act No. 7315, Dec. 31, 2004
Act No. 7289, Dec. 31, 2004
Act No. 7386, Jan. 27, 2005
Act No. 7492, Mar. 31, 2005
Act No. 7428, Mar. 31, 2005
Act No. 7796, Dec. 29, 2005
Act No. 8635, Aug. 3, 2007
Act No. 8631, Aug. 3, 2007
Act No. 8666, Oct. 17, 2007
Act No. 8863, Feb. 29, 2008
Act No. 9357, Jan. 30, 2009
Act No. 9554, Mar. 25, 2009
Act No. 10166, Mar. 22, 2010
Act No. 10303, May 17, 2010
Act No. 11119, Dec. 2, 2011
Act No. 11406, Mar. 21, 2012
Act No. 11758, Apr. 5, 2013
Act No. 11845, May 28, 2013
Act No. 11937, Jul. 16, 2013
Act No. 12095, Aug. 13, 2013
Act No. 12334, Jan. 24, 2014
Act No. 12708, May 28, 2014
Act No. 13071, Jan. 20, 2015
Act No. 13450, Jul. 24, 2015
Act No. 14075, Mar. 18, 2016
Act No. 14137, Mar. 29, 2016
Act No. 14122, Mar. 29, 2016
Act No. 14127, Mar. 29, 2016
CHAPTER I GENERAL PROVISIONS
The purposes of this Act are to promote fair and free competition; to encourage thereby creative business activities; to protect consumers; and to strive for balanced development of the national economy, by preventing business entities from abusing their market-dominant positions and any excessive concentration of economic power and by regulating illegal cartel conduct and unfair trade practices.
The terms used in this Act are defined as follows: <Amended by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 6371, Jan. 16, 2001; Act No. 7315, Dec. 31, 2004; Act No. 8387, Apr. 27, 2007; Act No. 8631, Aug. 3, 2007>
| 1. | The term "business entity" means any entity that engages in manufacturing business, service business, or any other business. Any executive, employee, agent, or any other person who acts for the benefit of a business entity shall be deemed a business entity in the application of the provisions pertaining to business entities' organizations; |
| 1-2. | The term "holding company" means a company the main business of which is to control the business activities of a domestic company by holding the shares (including equities; hereinafter the same shall apply) in the domestic company and total assets of which are more than or equal to the amount prescribed by Presidential Decree. In such cases, standards for the main business shall be prescribed by Presidential Decree; |
| 1-3. | The term "subsidiary" means a domestic company the business of which is controlled by a holding company that satisfies the conditions prescribed by Presidential Decree; |
| 1-4. | The term "second-tier subsidiary" means a domestic company the business of which is controlled by a subsidiary that satisfies the conditions prescribed by Presidential Decree; |
| 2. | The term "business group" means a group of companies the business of which is substantially controlled by the same person according to the criteria prescribed by Presidential Decree as classified below: |
| (a) | Where the same person is a company, a group comprised of such person and one or more companies controlled by that person; |
| (b) | Where the same person is not a company, a group comprised of two or more companies controlled by that person; |
| 3. | The term "affiliate" means where two or more companies belong to the same business group, each company is called an affiliate of the others; |
| 4. | The term "business entities' organization" means an association or a federation that is organized by two or more business entities to increase their common interests, regardless of its form; |
| 5. | The term "executive" means a director, a representative director, a general partner, an auditor, or a person in a similar position, or a commercial employer, such as a manager, who is capable of conducting general business of the main or branch office; |
| 6. | The term "practice of resale price maintenance" means an act whereby a business entity forces a business entity, which is the other party to a transaction, or other business entity in each stage of transaction to sell goods or to provide services at a price specified by the first-mentioned business entity, or making a transaction under an agreement or binding terms and conditions thereon for such purpose in the transaction of such goods or services; |
| 7. | The term "market-dominant business entity" means a business entity, which is a supplier or customer in a particular business area, in a position to determine, maintain, or change the price, quantity, quality, or other terms and conditions of transactions of specific goods or services either alone or together with other business entities. In deciding whether a business entity is a market-dominant business entity, its market share, whether and to what extent any barriers to enter a market exist, and the relative scale of competitors shall be comprehensively taken into account; |
| 8. | The term "particular business area" means an area in which any competitive relationship exists or may exist, by the subject, stage, or geographical area of a trade; |
| 8-2. | The term "practices substantially restricting competition" means practices which affect or threaten to affect the determination of price, quantity, quality, or other terms or conditions of transactions by intent of a certain business entity or a business entities' organization, because of reduced competition in a particular business area; |
| 9. | The term "credit" means any loan and guarantee or assumption of company obligation by domestic financial institutions; |
| 10. | The term "financial business or insurance business" means financial business or insurance business categorized according to the Korean Standard Industrial Classification that is published by the Commissioner of the National Statistical Office pursuant to Article 22 (1) of the Statistics Act. |
| Article 2-2 (Application to Overseas Act) |
This Act shall also apply to acts done outside Korea, if such acts affect the domestic market.
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
CHAPTER II PROHIBITION ON ABUSE OF MARKET-DOMINANT POSITION
| Article 3 (Remedy, etc. of Monopoly or Oligopoly in Market Structures) |
| (1) | The Fair Trade Commission shall establish and implement action plans to promote competition in markets in which monopoly or oligopoly situations have continued over an extended period in relation to supply or demand of specific goods or services. |
| (2) | The Fair Trade Commission may present its opinions to the heads of the relevant administrative agencies about the introduction of competition or other measures necessary to improve market structures, where necessary to promote the action plans referred to in paragraph (1). |
| (3) | The Fair Trade Commission shall survey the market structures and publish survey findings in order to establish and promote the action plans referred to in paragraph (1). <Newly Inserted by Act No. 5813, Feb. 5, 1999> |
| (4) | The Fair Trade Commission may request business entities to submit data necessary to survey the market structures and to publish survey findings pursuant to paragraph (3). <Newly Inserted by Act No. 5813, Feb. 5, 1999> |
| (5) | The Fair Trade Commission may entrust the business affairs provided for in paragraphs (3) and (4) to other agencies, as prescribed by Presidential Decree. <Newly Inserted by Act No. 5813, Feb. 5, 1999> |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 3-2 (Prohibition on Abuse of Market-Dominant Position) |
| (1) | No market-dominant business entity shall engage in any of the following practices (hereinafter referred to as "abusive practices"): <Amended by Act No. 5813, Feb. 5, 1999> |
| 1. | Unfairly determining, maintaining, or changing the price of goods or services (hereinafter referred to as "price"); |
| 2. | Unfairly controlling the sale of goods or the provision of services; |
| 3. | Unfairly interfering with the business activities of any other business entity; |
| 4. | Unfairly interfering with the market entry of a new competitor; |
| 5. | Making an unfair transaction to exclude a competitor or substantially undermining consumer interests. |
| (2) | Types of and criteria for the abusive practices may be prescribed by Presidential Decree. <Newly Inserted by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999> |
| Article 4 (Presumption of Market-Dominant Business Entity) |
A business entity (excluding any business entity annual sales or purchases of which in a particular business area are less than 4 billion won) shall be presumed a market-dominant business entity, as defined in subparagraph 7 of Article 2, if its market share in a particular business area is as follows: <Amended by Act No. 8631, Aug. 3, 2007>
| 1. | The business entity’s market share is at least 50 percent in the particular business area; |
| 2. | The aggregate of market shares of not more than three business entities is at least 75 percent: Provided, That business entities with less than 10 percent market share are excluded herefrom. |
[This Article Wholly Amended by Act No. 5813, Feb. 5, 1999]
| Article 5 (Corrective Measures) |
Where a market-dominant business entity violates Article 3-2, the Fair Trade Commission may order the market-dominant business entity to lower the price; to stop the violation; to publish the fact that it is ordered to take corrective measures; or to take other measures necessary to correct such violation. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 7315, Dec. 31, 2004>
| Article 6 (Penalty Surcharges) |
Where a market-dominant business entity engages in abusive practices, the Fair Trade Commission may impose upon the market-dominant business entity a penalty surcharge not exceeding three percent of the sales prescribed by Presidential Decree (or operating revenues in the case of a business entity prescribed by Presidential Decree; hereinafter the same shall apply): Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding one billion won in cases prescribed by Presidential Decree where no sales have been made or it is impracticable to calculate the sales (hereinafter referred to as "in the event that no sales have been made").
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
CHAPTER III RESTRICTION ON BUSINESS COMBINATION AND
| Article 7 (Restriction on Business Combination) |
| (1) | No one shall, either directly or through a person in a special relationship prescribed by Presidential Decree (hereinafter referred to as "related party"), engage in practices substantially restricting competition in a particular business area by doing any of the following acts (hereinafter referred to as "business combination"): Provided, That the foregoing shall not apply where a person, other than a company that satisfies the criteria prescribed by Presidential Decree (hereinafter referred to as "large company") in terms of total assets or sales (referring to the sum of total assets or sales of affiliates), does the act provided for in subparagraph 2: <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 8631, Aug. 3, 2007> |
| 1. | Acquiring or holding shares in any other company; |
| 2. | Concurrently holding an executive position in another company (hereinafter referred to as "concurrent holding of an executive position") by an executive or employee (referring to a person who continues to engage in the affairs of the company, but is not an executive; hereinafter the same shall apply); |
| 3. | Merging with any other company; |
| 4. | Acquiring by transfer, leasing or accepting by mandate all or substantial part of the business of another company, or acquiring by transfer all or substantial part of fixed operating assets of another company (hereinafter referred to as "acquisition by transfer of business"); |
| 5. | Participation in the establishment of a new company: Provided, That the following cases are excluded herefrom: |
| (a) | Where any person, other than related parties (excluding a person prescribed by Presidential Decree), does not participate in the establishment of a new company; |
| (b) | Where a person participates in the establishment of a company through a division provided for in Article 530-2 (1) of the Commercial Act. |
| (2) | Paragraph (1) shall not apply where the Fair Trade Commission recognizes a business combination as qualifying for any of the following. In such cases, the relevant business entities shall assume the burden of proof as to whether they satisfy the conditions: <Amended by Act No. 5813, Feb. 5, 1999> |
| 1. | Where the effect of increasing efficiency attainable through the business combination is greater than the negative effect of restricting competition; |
| 2. | Where such business combination is made with an inviable company, such as a company whose total capital, as presented on its balance sheet, is less than its paid-in capital for a substantial period and satisfies the conditions prescribed by Presidential Decree. |
| (3) | Deleted. <by Act No. 8631, Aug. 3, 2007> |
| (4) | A business combination that satisfies any of the following conditions shall be presumed to substantially restrict competition in a particular business area: <Newly Inserted by Act No. 5335, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 8631, Aug. 3, 2007> |
| 1. | Where the aggregate of market shares (referring to the aggregate of market shares of the affiliates; hereafter the same shall apply in this Article) of companies (referring to all companies participating in the establishment of a company in the case of paragraph (1) 5; hereinafter the same shall apply) participating in the business combination meets the following conditions: |
| (a) | Where the aggregate of market shares satisfies the presumptive requirements for a market dominant business entity; |
| (b) | Where the aggregate of the market shares is the largest in the relevant business area; |
| (c) | Where the aggregate of market shares exceeds the market share of a company with the second largest market share (referring to a company with the largest market share besides the companies participating in the business combination) by 25 percent or more of the aggregate of the market shares; |
| 2. | Where a business combination conducted either directly by a large company or through its related party meets the following conditions: |
| (b) | The large company shall have 5 percent or more of the market share through the business combination. |
| (5) | The Fair Trade Commission may determine and publicly notify the criteria for business combinations that substantially restrict competition in a particular business area, as referred to in paragraph (1), and for business combinations not subject to paragraph (1) pursuant to paragraph (2). <Newly Inserted by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 8631, Aug. 3, 2007> |
| Article 7-2 (Standards for Acquisition or Holding of Shares) |
The acquisition or holding of shares under this Act shall be determined by the genuine ownership of the shares, regardless of the names listed on the register.
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 8 (Reporting on Establishment of, and Conversion into, Holding Company) |
A person who has established a holding company or has converted his/her company into a holding company shall report thereon to the Fair Trade Commission, as prescribed by Presidential Decree. <Amended by Act No. 6371, Jan. 16, 2001>
[This Article Wholly Amended by Act No. 5813, Feb. 5, 1999]
| Article 8-2 (Restrictions, etc. on Acts by Holding Company, etc.) |
| (1) | The terms used in this Article are defined as follows: <Newly Inserted by Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007> |
| 1. | The term "joint stock corporation" means a corporation in which two or more investors (any person other than a person prescribed by Presidential Decree, among related investors, shall be deemed one person) who hold substantial amounts of equity that entitles them to exercise influence on corporate management, substantially restrict the transfer of equity shares by means of a contract or other equivalent means, thereby making it impracticable to make any changes in equity shares held by investors; |
| 2. | The term "venture holding company" means a holding company that has a venture business, as defined in Article 2 (1) of the Act on Special Measures for the Promotion of Venture Businesses (hereinafter referred to as "venture business"), as its subsidiary and meets the condition prescribed by Presidential Decree. |
| (2) | A holding company shall not do any of the following acts: <Amended by Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act Nos. 8631 & 8635, Aug. 3, 2007; Act No. 11758, Apr. 5, 2013; Act No. 11845, May 28, 2013> |
| 1. | Holding liabilities in excess of twice the total capital (referring to total assets minus total liabilities, as presented on the balance sheet; hereinafter the same shall apply): Provided, That, where a holding company holds liabilities in excess of twice the total capital as at the time the company is converted into a holding company or incorporated as a holding company, it may hold liabilities in excess of twice its total capital for two years from the date on which it is converted into a holding company or incorporated as a holding company; |
| (a) | through (c) Deleted. <by Act No. 7315, Dec. 31, 2004> |
| 2. | Holding less than 40 percent of the total number of shares issued by the subsidiary [or less than 20 percent, where the subsidiary is a listed corporation under the Financial Investment Services and Capital Markets Act (hereinafter referred to as "listed corporation"), a corporation listed on an overseas stock exchange (hereinafter referred to as "overseas listed corporation") publicly notified by the Fair Trade Commission in which the listing requirements, such as the shareholding distribution requirements, equivalent to the requirements for listing on the domestic securities market prescribed by Presidential Decree, a joint stock corporation, or the subsidiary of a venture holding company; hereafter referred to as "subsidiary shareholding standard" in this Article): Provided, That the foregoing shall not apply to any subsidiary that falls short of the subsidiary shareholding standard on any of the following grounds: |
| (a) | Where the holding company holds shares that fall short of the subsidiary shareholding standard as at the time it is converted into a holding company or incorporated as a holding company and is within two years from the date on which it is converted into a holding company or incorporated as a holding company; |
| (b) | Where the holding company holds shares that fall short of the subsidiary shareholding standard because its subsidiary that was a listed corporation, an overseas listed corporation, or a joint stock corporation has ceased to be a listed corporation, an overseas listed corporation, or a joint stock corporation and is within one year from the date on which its subsidiary has ceased to be a listed corporation, an overseas listed corporation, or a joint stock corporation; |
| (c) | Where the company that was a venture holding company has ceased to be a venture holding company, thereby falling short of the subsidiary shareholding standard and is within one year from the date on which it has ceased to be a venture holding company; |
| (d) | Where the holding company falls short of the subsidiary shareholding standard and is within one year from the date on which it falls short of the subsidiary shareholding standard because its subsidiary preferentially allots shares to the members of the employee stock ownership association pursuant to Article 165-7 of the Financial Investment Services and Capital Markets Act while offering and selling shares or a claim is filed for converting convertible bonds or warrant bonds issued by its subsidiary pursuant to Article 513 or 516-2 of the Commercial Act or the preemptive right is exercised; |
| (e) | Where the holding company falls short of the subsidiary shareholding standard because a non-subsidiary company has become its subsidiary and is within one year from the date on which the non-subsidiary company has become its subsidiary; |
| (f) | Where the holding company falls short of the subsidiary shareholding standard in the course of making its subsidiary a non-subsidiary and is within one year from the date on which it falls short of the subsidiary shareholding standard (limited to where its subsidiary becomes a non-subsidiary within one year from the date on which it falls short of the subsidiary shareholding standard); |
| (g) | Where the holding company falls short of the subsidiary shareholding standard because its subsidiary has merged with another company, and is within one year from the date on which it falls short of the subsidiary shareholding standard. |
| 3. | Holding shares of a domestic company (excluding a company that operates the 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; hereafter the same shall apply in this subparagraph) that is not an affiliate, in excess of 5 percent of the total number of shares issued by that domestic company (this shall not apply to any holding company that holds less than 15 percent of the total value of the shares of the domestic company that is not its affiliate) or holding shares of any domestic affiliate, other than its subsidiary: Provided, That the same shall apply to any domestic company that is not an affiliate or any domestic affiliate that each holds shares on any of the following grounds: |
| (a) | Where the company does the act provided for in the main sentence of this subparagraph as at the time it is converted into a holding company or is incorporated as a holding company and is within two years from the date on which it is converted or incorporated as a holding company; |
| (b) | Where the company does the act provided for in the main sentence of this subparagraph in the course of making any non-affiliate as its subsidiary and is within one year from the date on which it does such act (limited where any non-affiliate becomes its subsidiary within the same period); |
| (c) | Where the company holds the shares of a domestic affiliate, none of which is held by the company, in the course of making the domestic affiliate as its subsidiary and is within one year from the date on which it holds the shares of the domestic affiliate (limited to where the domestic affiliate becomes its subsidiary); |
| (d) | Where the company is within one year from the date on which a subsidiary is excluded from its subsidiaries in the course of making its subsidiary a non-subsidiary; |
| 4. | Holding shares of a domestic company that is not a company engaging in financial business or insurance business (including a company that meets the conditions prescribed by Presidential Decree, such as close relevance to financial business or insurance business) in the case of a holding company that holds shares of its subsidiary engaging in financial business or insurance business (hereinafter referred to as "financial holding company"): Provided, That when a holding company holds shares of any domestic company that is not a company engaging in financial business or insurance business, as at the time it is converted into a financial holding company or is incorporated as a financial holding company, such holding company may hold the shares of that domestic company for two years from the date on which it is converted into a financial holding company or is incorporated as a financial holding company; |
| 5. | Holding shares of a domestic company engaging in financial business or insurance business in the case of a holding company that is not a financial holding company (hereinafter referred to as "general holding company"): Provided, That when a holding company holds shares of any domestic company engaging in financial business or insurance business as at the time the holding company is converted into a general holding company or is incorporated as a general holding company, such holding company may hold the shares of that domestic company for two years from the date on which it is converted into a general holding company or is incorporated as a general holding company. |
| (3) | None of the subsidiaries of a general holding company shall do any of the following acts: <Amended by Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007; Act No. 13071, Jan. 20, 2015> |
| 1. | Holding less than 40 percent of the total number of shares issued by a second-tier subsidiary (or less than 20 percent, where the second-tier subsidiary is a listed corporation, an overseas listed corporation, or a joint stock corporation; hereafter referred to as "shareholding standard of the second-tier subsidiary" in this Article): Provided, That the foregoing shall not apply to any subsidiary that falls short of the shareholding standard of the second-tier subsidiary on any of the following grounds: |
| (a) | Where it has been less than two years since the subsidiary held shares of the second-tier subsidiary falling short of the shareholding standard of the second-tier subsidiary as at the time it became a subsidiary; |
| (b) | Where it has been less than one year since the second-tier subsidiary, being a listed corporation, an overseas listed corporation, or a joint stock corporation ceased to be a listed corporation, an overseas listed corporation, or a joint stock corporation and the subsidiary held shares of the second-tier subsidiary falling short of the shareholding standard of the second-tier subsidiary; |
| (c) | Where the subsidiary holds shares of the second-tier subsidiary falling short of the shareholding standard of the second-tier subsidiary is within one year from the date on which it falls short of the shareholding standard of the because its second-tier subsidiary preferentially allots shares to the members of the employee stock ownership association pursuant to Article 165-7 of the Financial Investment Services and Capital Markets Act while offering and selling shares or a claim is filed for converting convertible bonds or warrant bonds issued by its second-tier subsidiary pursuant to Article 513 or 516-2 of the Commercial Act or the preemptive right is exercised; |
| (d) | Where it has been less than one year since a non second-tier subsidiary became a second-tier subsidiary and the subsidiary fell short of the shareholding standard of the second-tier subsidiary; |
| (e) | Where it has been less than one year since the subsidiary fell short of the shareholding standard of the second-tier subsidiary in the course of making its second-tier subsidiary a non second-tier subsidiary (limited to where the second-tier subsidiary becomes a non second-tier subsidiary during the same period); |
| (f) | Where it has been less than one year since the subsidiary fell short of the shareholding standard of the second-tier subsidiary due to the second-tier subsidiary’s merger with another company; |
| 2. | Holding shares of any domestic affiliate that is not a second-tier subsidiary: Provided, That the foregoing shall not apply where any domestic affiliate holds the shares on any of the following grounds: |
| (a) | Where it has been less than two years, since the domestic affiliate holds shares as at the time it is converted into a subsidiary; |
| (b) | Where it has been less than a year, since a company that is not an affiliate falls under a second-tier subsidiary in the course of getting the company to fall under a second-tier subsidiary (limited to where the company falls under the second-tier subsidiary within the same period); |
| (c) | Where it has been less than a year, since shares of any domestic affiliate, none of which is held, are obtained in the course of getting the relevant domestic affiliate to fall under the second-tier subsidiary (limited to where it falls under the second-tier subsidiary within the same period); |
| (d) | Where it has been less than a year, since any second-tier subsidiary does not fall under the second-tier subsidiary in the course of getting the former not to fall under the latter (limited to where the second-tier subsidiary does not fall under any affiliate within the same period); |
| (e) | Where it has been less than a year, since a second-tier subsidiary became to hold the shares another subsidiary due to its merger with such subsidiary; |
| (f) | Where it has been less than a year, since a subsidiary which holds its own shares came to hold shares of another domestic affiliate due to its split; |
| 3. | Controlling a company engaging in financial business or insurance business as a second-tier subsidiary: Provided, That if it controls a company engaging in financial business or insurance business as a second-tier subsidiary as at the time it becomes a subsidiary of a general holding company, it may control the second-tier subsidiary for two years from the date on which it becomes a subsidiary. |
| (4) | None of the second-tier subsidiaries of a general holding company shall hold shares of any domestic affiliate: Provided, That the foregoing shall not apply where the domestic affiliate holds such shares on any of the following grounds: <Newly Inserted by Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007> |
| 1. | Where it has been less than two years since the domestic affiliate holds shares as at the time it becomes a second-tier subsidiary; |
| 2. | The domestic company, which is not an affiliate holding shares, becomes an affiliate and is within one year from the date on which the domestic company becomes an affiliate; |
| 3. | Where it has been less than a year since a second-tier subsidiary that holds its own shares holds shares of another domestic affiliate due to its spilt; |
| 4. | Where a second-tier subsidiary holds the total number of shares issued by a domestic affiliate (excluding a company engaging in financial business or insurance business). |
| (5) | A company (hereinafter referred to as "third-tier subsidiary") whose shares are held by a second-tier subsidiary as prescribed in paragraph (4) 4 shall not hold shares of any domestic affiliate: Provided, That the foregoing shall not apply in any of the following circumstance: <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
| 1. | Where it has been less than two years since a domestic affiliate became a third-tier subsidiary for the domestic affiliate whose shares were held as at the time it became a third-tier subsidiary; |
| 2. | Where it has been less than a year since a domestic company, which is not an affiliate whose shares are held, became an affiliate. |
| (6) | For the purposes of the proviso to paragraph (2) 1, paragraph (2) 2 (a) and 3 (a), the provisos to paragraph (2) 4 and 5, and paragraphs (3) 1 (a) and 2 (a), proviso to paragraph (3) 3, paragraphs (4) 1 and (5) 1, if it is impracticable to decrease the amount of liabilities or to acquire or dispose of shares due to changes in general economic conditions, such as stock price fluctuations, a contract prohibiting the disposal of shares, a substantial business loss, or other causes, the grace periods provided for in said provisions may be extended up to two more years with the approval of the Fair Trade Commission. <Newly Inserted by Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007> |
| (7) | A holding company shall submit a report on its business activities, which shall include the status of shareholding by the holding company, its subsidiaries, second-tier subsidiaries, and third-tier subsidiary (hereinafter referred to as "holding company, etc.") and their financial standings, to the Fair Trade Commission, as prescribed by Presidential Decree. <Amended by Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007> |
[This Article Newly Inserted by Act No. 5813, Feb. 5, 1999]
| Article 8-3 (Restrictions on Establishment of Holding Company by Business Group subject to Limitations on Debt Guarantees) |
Where the same person who controls a member company of a business group subject to limitations on debt guarantees designated under Article 14 (1) or his/her related party intends to establish a holding company or convert his/her company into a holding company, the following debt guarantees prescribed in Article 10-2 shall be annulled: <Amended by Act No. 6651, Jan. 26, 2002>
| 1. | A debt guarantee between a holding company and its subsidiary; |
| 2. | A debt guarantee between a holding company and other domestic affiliates (excluding a subsidiary controlled by that holding company); |
| 3. | A debt guarantee between subsidiaries; |
| 4. | A debt guarantee between a subsidiary and other domestic affiliates (excluding a holding company controlling that subsidiary and other subsidiary controlled by that holding company). |
[This Article Newly Inserted by Act No. 5813, Feb. 5, 1999]
| Article 9 (Prohibition, etc. on Cross Shareholding) |
| (1) | A member company of a business group designated under Article 14 (1) (hereinafter referred to as "business group subject to limitations on cross shareholding") as it meets criteria prescribed by Presidential Decree in terms of its total assets, etc. shall neither acquire nor hold shares of any affiliate that, in turn, acquires or holds shares of that member company: Provided, That the foregoing shall not apply in any of the following cases: <Amended by Act No. 6651, Jan. 26, 2002> |
| 1. | A corporate merger or acquisition of an entire business; |
| 2. | Exercise of a security right or the receipt of an accord and satisfaction. |
| (2) | A company that holds shares pursuant to the proviso to paragraph (1) shall dispose of the shares within six months from the date of acquisition or holding of such shares: Provided, That the foregoing shall not apply where an affiliate that acquires or holds the shares of that company disposes of such shares. |
| (3) | A member company of a business group subject to limitations on cross shareholding, which is an investment company for small and medium business start-ups established under the Support for Small and Medium Enterprise Establishment Act, shall neither acquire nor hold shares of any domestic affiliate. <Amended by Act No. 6651, Jan. 26, 2002; Act No. 8631, Aug. 3, 2007> |
| Article 9-2 (Prohibition on Circular Shareholding) |
| (1) | The terms used in this Article are defined as follows: |
| 1. | The term "shareholding in an affiliate" means an act by which a member company of a business group subject to limitations on cross shareholding acquires or holds the shares of an affiliate; |
| 2. | The term "company having a shareholding in an affiliate" means an affiliate that acquires or holds shares of another affiliate by having a shareholding in that affiliate; |
| 3. | The term "issuing company" means an affiliate that issues shares acquired or held by a company that has a shareholding in that affiliate; |
| 4. | The term "circular shareholding" means a relationship in which affiliates are interconnected by establishing a chain of three shareholdings, acting both as a company having a shareholding in an affiliate and an issuing company; |
| 5. | The term "group of circular shareholding companies" means a group of affiliates in a relationship of circular shareholding, among member companies of a business group subject to limitations on cross shareholding. |
| (2) | A member company of a business group subject to limitations on cross shareholding shall not have any shareholding in any affiliate that forms any circular shareholding. The foregoing shall also apply to additional shareholdings that a member affiliate of a group of circular shareholding companies has in an issuing company (excluding shares held by a company having a shareholding in an affiliate within its equity ratio prior to allotment of new shares, etc. among the shares acquired or held by allotment of new shares under Article 418 (1) of the Commercial Act, or by stock dividends under Article 462-2 (1) of the same Act (hereinafter referred to as "allotment of new shares, etc.") and any shareholding in affiliates by a merger between member affiliates of a group of circular shareholding companies): Provided, That the foregoing shall not apply in any of the following cases: <Amended by Act No. 14075, Mar. 18, 2016> |
| 1. | A corporate merger or division, an all-inclusive share swap or exchange, or acquisition of an entire business; |
| 2. | Exercise of a security right or the receipt of an accord and satisfaction; |
| 3. | Where shares of an issuing company are acquired or held by a company having a shareholding in an affiliate in excess of its equity ratio prior to allotment of new shares, etc. due to share forfeiture of another shareholder or other causes, among the shares acquired or held by the company having a shareholding in an affiliate through allotment of new shares, etc.; |
| 4. | Where a council of creditor financial institutions has determined to allow the same person (including his/her relatives) to contribute property or participate in a capital increase by issuing new shares (including a debt-equity swap for the relevant claims) by an affiliate, which is a shareholder in the relevant company showing signs of insolvency, pursuant to Article 24 (2) of the Corporate Restructuring Promotion Act, for a company which has commenced administrative proceedings for companies showing signs of insolvency under Article 9 (1) of the same Act; |
| 5. | Where a creditor financial institution, as defined in subparagraph 2 of Article 2 of the Corporate Restructuring Promotion Act, has concluded an agreement on the implementation of a work-out plan with a company showing signs of insolvency, as defined in subparagraph 7 of Article 2 of the same Act, and a council of creditor financial institutions has determined to allow the same person (including his/her relatives) to contribute property or participate in a capital increase by issuing new shares (including a debt-equity swap for the relevant claims) by a company having a shareholding in an affiliate, which is a shareholder in the relevant company showing signs of insolvency. |
| (3) | A company that has a shareholding in an affiliate subject to the proviso to paragraph (2) shall dispose of the shares so acquired or held (referring to the shares acquired or held in excess of its equity ratio prior to a decision on allotment of new shares, etc., or on property contribution or capital increase by issuing new shares, in cases falling under paragraph (2) 3 through 5) within any of the following periods: Provided, That the foregoing shall not apply where the circular shareholding formed or reinforced by a shareholding in an affiliate, as referred to in paragraph (2), is eliminated as one member company of a group of circular shareholding companies disposes of the shares it has acquired or held in an issuing company: |
| 1. | A company that has a shareholding in an affiliate pursuant to paragraph (2) 1 or 2: six months from the date of acquisition or holding of the shares; |
| 2. | A company that has a shareholding in an affiliate pursuant to paragraph (2) 3: one year from the date of acquisition or holding of the shares; |
| 3. | A company that has a shareholding in an affiliate pursuant to paragraph (2) 4 or 5: three years from the date of acquisition or holding of the shares. |
[This Article Newly Inserted by Act No. 12334, Jan. 24, 2014]
| Article 10 Deleted. <by Act No. 9554, Mar. 25, 2009> |
| Article 10-2 (Prohibition on Debt Guarantees for Affiliates) |
| (1) | A member company (excluding a company engaging in financial business or insurance business; hereinafter the same shall apply) of a business group designated under Article 14 (hereinafter referred to as "business group subject to limitations on debt guarantees") as it meets the criteria prescribed by Presidential Decree in terms of its total assets, etc. shall not provide any debt guarantee for its domestic affiliates: Provided, That the foregoing shall not apply to any of the following debt guarantees: <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 5825, Feb. 8, 1999; Act No. 6651, Jan. 26, 2002; Act No. 8631, Aug. 3, 2007> |
| 2. | Deleted; <by Act No. 5235, Dec. 30, 1996> |
| 3. | A debt guarantee provided as it is necessary to enhance the international competitiveness of business entities or in circumstances prescribed by Presidential Decree. |
| (2) | For the purpose of paragraph (1), "debt guarantee" means a guarantee provided by a member company of a business group subject to limitations on debt guarantees for its domestic affiliate in relation to the credits of any of the following domestic financial institutions: <Amended by Act No. 5403, Aug. 30, 1997; Act No. 5454, Dec. 13, 1997; Act No. 5528, Feb. 24, 1998; Act No. 6651, Jan. 26, 2002; Act No. 8631, Aug. 3, 2007; Act No. 8635, Aug. 3, 2007; Act No. 10303, May 17, 2010> |
| 1. | A bank established under the Banking Act, the Korea Development Bank, the Export-Import Bank of Korea, the Long-Term Credit Bank, and the Industrial Bank of Korea; |
| 2. | Deleted; <by Act No. 5503, Jan. 13, 1998> |
| 5. | Deleted; <by Act No. 8635, Aug. 3, 2007> |
| 6. | Other financial institutions prescribed by Presidential Decree. |
| (3) | and (4) Deleted. <by Act No. 5528, Feb. 24, 1998> |
[This Article Newly Inserted by Act No. 4513, Dec. 8, 1992]
| Article 10-3 Deleted. <by Act No. 6371, Jan. 16, 2001> |
| Article 11 (Disenfranchisement of Voting Rights of Finance Company or Insurance Company) |
A member company of a business group subject to limitations on cross shareholding that is engaged in financial business or insurance business shall not exercise its voting rights with respect to shares acquired or held by it in its domestic affiliates: Provided, That the foregoing shall not apply in any of the following cases: <Amended by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007; Act No. 14137, Mar. 29, 2016>
| 1. | Where the company acquires or holds shares to engage in financial business or insurance business; |
| 2. | Where the company acquires or holds shares by obtaining approval, etc. pursuant to the Insurance Business Act, etc. to efficiently operate and manage insured assets; |
| 3. | Where the general meeting of shareholders of any domestic affiliate (limited to a listed corporation) passes a resolution on any of the following matters. In such cases, the number of voting shares out of all shares of said affiliate shall not exceed 15 percent of the total number of shares issued by said affiliate (excluding the number of non-voting shares provided for in Articles 344-3 (1) and 369 (2) and (3) of the Commercial Act), including the number of shares to be exercised by the persons and related parties to said affiliate, with an exception of a person prescribed by Presidential Decree: |
| (a) | Appointment or dismissal of an executive; |
| (b) | Amendment of the articles of incorporation; |
| (c) | Merger of said affiliate with another company, or transfer of all or substantial part of its business to another company. |
| Article 11-2 (Resolutions by Board of Directors on Large-Scale Internal Trading and Disclosure) |
| (1) | Where a member company of a business group that meets the criteria prescribed by Presidential Decree in terms of its total assets, etc. (hereinafter referred to as "company required to disclose its internal trading") intends to conduct any of the following trading (hereinafter referred to as "large-scale internal trading") with or for any related party in excess of the scale prescribed by Presidential Decree, the member company shall first call a meeting of the board of directors for a resolution on large-scale internal trading and make public such large-scale internal trading. The same shall apply to any modification to material facts prescribed in paragraph (2): <Amended by Act No. 6651, Jan. 26, 2002; Act No. 8382, Apr. 13, 2007> |
| 1. | Offering or trading funds, such as suspense payments or loans; |
| 2. | Offering or trading securities, such as shares or corporate bonds; |
| 3. | Offering or trading assets, such as real estate or intangible property rights; |
| 4. | Offering or trading goods or services with or for an affiliate prescribed by Presidential Decree, taking into account the shareholder structure, etc. |
| (2) | A company required to disclose its internal trading shall make public material facts prescribed by Presidential Decree, such as the purpose, scale, and terms of the trading, and the trading counterpart, in making a disclosure pursuant to paragraph (1). |
| (3) | The Fair Trade Commission may entrust the business affairs related to disclosures prescribed in paragraph (1) to institutions in charge of receiving statements of material facts under Article 161 of the Financial Investment Services and Capital Markets Act. In such cases, the Fair Trade Commission shall determine methods, procedures, and other necessary matters with respect to disclosures in consultation with such entrusted institutions. <Amended by Act No. 8631, Aug. 3, 2007; Act No. 8635, Aug. 3, 2007> |
| (4) | Where a company required to disclose its internal trading, which is engaged in financial business or insurance business, intends to conduct trading that meets criteria prescribed by Presidential Decree under standardized terms and conditions, the company may conduct such trading, without calling a meeting of the board of directors for a resolution, notwithstanding paragraph (1): Provided, That such company shall make public the details of such trading. |
| (5) | For the purposes of paragraph (1), a resolution passed at the committee (limited to the committee that is comprised of at least three outside directors, as defined in Article 9 (3) of the Financial Investment Services and Capital Markets Act, and the number of outside directors is at least 2/3 of all members of the committee) established by a listed corporation pursuant to Article 393-2 of the Commercial Act shall be deemed a resolution passed at a meeting of the board of directors. <Newly Inserted by Act No. 8631, Aug. 3, 2007; Act No. 13071, Jan. 20, 2015> |
[This Article Newly Inserted by Act No. 6043, Dec. 28, 1999]
| Article 11-3 (Disclosure of Material Facts by Unlisted Company, etc.) |
| (1) | A member company (excluding any company engaging in financial business or insurance business) of a business group that meets the criteria prescribed by Presidential Decree in terms of its total assets, etc., other than listed corporations, shall make public any of the following matters: Provided, That matters made public pursuant to Article 11-2 are excluded herefrom: <Amended by Act No. 8382, Apr. 13, 2007; Act Nos. 8631 & 8635, Aug. 3, 2007> |
| 1. | Matters prescribed by Presidential Decree, which are material facts about its ownership and governance structure, including the status of shares held by the largest shareholders and major shareholders (referring to major shareholders provided for in Article 9 (1) 2 of the Financial Investment Services and Capital Markets Act), any change thereof, and changes in composition of the executive board of the company; |
| 2. | Matters prescribed by Presidential Decree, which cause material changes in its financial structure, including acquisition of assets or shares, donations, the provision of security, the underwriting of, and exemption from liabilities; |
| 3. | Matters prescribed by Presidential Decree, which are material facts related to its management, including the transfer and acquisition of a business, a merger and division, and a share swap or exchange. |
| (2) | Article 11-2 (2) and (3) shall apply mutatis mutandis to disclosures referred to in paragraph (1). |
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 11-4 (Disclosure of Status, etc. of Business Group) |
| (1) | A company whose total assets, etc. meets the criteria prescribed by Presidential Decree among member companies of a business group subject to limitations on cross shareholding shall make public information about the business group’s general status and shareholding status, status of its affiliates that are not holding companies, etc. (limited to where the aggregate of total assets of the holding companies, etc. is more than or equal to 50 percent of the aggregate of total assets of 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), status of circular shareholding made under Article 9-2, whether it has exercised voting rights under Article 11 (excluding the exercise of the voting rights in the shares of a company engaging in financial business or insurance business), and matters prescribed by Presidential Decree regarding the status of trading with related parties. <Amended by Act No. 12334, Jan. 24, 2014; Act No. 14137, Mar. 29, 2016> |
| (2) | Article 11-2 (3) shall apply mutatis mutandis to disclosures referred to in paragraph (1). |
| (3) | Except as expressly provided for in paragraph (2), the timing of, methods and procedures for, disclosures referred to in paragraph (1), and other necessary matters, shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 9554, Mar. 25, 2009]
| Article 12 (Reporting on Business Combination) |
| (1) | Where a company (limited to a large company in the case of a business combination in the manner provided for in subparagraph 3; hereafter referred to as "company required to report its business combination" in this Article) whose total assets or sales meet the criteria prescribed by Presidential Decree or its related party conducts a business combination in any of the manners provided for in subparagraphs 1 through 4 with another company (hereafter referred to as "partner company" in this Article) whose total assets or sales meet the criteria prescribed by Presidential Decree, or a company required to report its business combination or its related party conducts a business combination in the manner provided for in subparagraph 5 jointly with the partner company or its related party, the company or the related party shall report thereon to the Fair Trade Commission, as prescribed by Presidential Decree. The foregoing shall also apply where a company whose scale is equivalent to the scale of the partner company, other than a company required to report its business combination, or its related party conducts a business combination in any of the manners provided for in subparagraphs 1 through 4 with a company required to report its business combination, or a company whose scale is equivalent to the scale of the partner company, other than a company required to its report business combination, or its related party conducts a business combination in the manner provided for in subparagraph 5 jointly with the company required to report its business combination or the related party: <Amended by Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007> |
| 1. | 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 (excluding non-voting shares provided for in Article 370 of the Commercial Act; hereinafter the same shall apply) issued by another company; |
| 2. | Where a person who holds shares issued by another company in excess of the percentage specified in subparagraph 1 becomes the largest shareholder by additionally acquiring shares of that company; |
| 3. | Where an executive of the company concurrently holds an executive position in another company (excluding where he/she concurrently holds an executive position in an affiliate); |
| 4. | Where the company does the act provided for in Article 7 (1) 3 or 4; |
| 5. | Where the company participates in the establishment of a new company and becomes the largest shareholder thereof. |
| (2) | The total assets or sales of the company required to report its business combination or of the partner company referred to in paragraph (1) means an aggregate of the total assets or sales of the companies that continue to be affiliates from before the date of the business combination until after the date of the business combination: Provided, That in the case of acquisition of a business by transfer prescribed in Article 7 (1) 4 of, the total assets or sales of the company that transfers its business (including lease of business, delegation of management, and the transfer of fixed operating assets) means the amount less the total assets or sales of its affiliates. <Newly Inserted by Act No. 7315, Dec. 31, 2004> |
| (3) | Notwithstanding paragraph (1), no report is required in any of the following cases: <Newly Inserted by Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 6705, Aug. 26. 2002; Act No. 7315, Dec. 31, 2004; Act Nos. 8631 & 8635 Aug. 3, 2007; Act Nos. 14122 & 14127, Mar. 29, 2016> |
| 1. | Where a small and medium business start-up investment company or a small and medium business start-up investment fund, as defined in subparagraph 4 or 5 of Article 2 of the Support for Small and Medium Enterprise Establishment Act, holds shares of a business starter, as defined in subparagraph 2 of the same Article (hereinafter referred to as "business starter"), or a venture business in excess of the percentage specified in paragraph (1) 1, or becomes the largest shareholder by participating in the establishment of the business starter or the venture business jointly with another company; |
| 2. | Where a new technology venture capitalist or a new technology venture capital fund established under the Specialized Credit Finance Business Act holds shares of a new technology business entity, as defined in subparagraph 1 of Article 2 of the Korea Technology Finance Corporation Act (hereinafter referred to as "new technology business entity") in excess of the percentage specified in paragraph (1) 1, or becomes the largest shareholder by participating in the establishment of the business starter or the venture business jointly with another company; |
| 3. | Where a company required to report its business combination holds shares of any of the following companies in excess of the percentage specified in paragraph (1) 1, or becomes the largest shareholder by participating in the establishment of any of the following companies jointly with another company: |
| (c) | An investment company (limited to a company provided for in Article 51-2 (1) 6 of the Corporate Tax Act) established for investing in a company, as referred to in item (b); |
| (4) | Paragraph (1) shall not apply where the head of a central administrative agency has had a prior consultation with the Fair Trade Commission about the relevant business combination pursuant to the provisions of other Act. |
| (5) | Shares held by related parties to the relevant company shall be aggregated for the purposes of calculating the ratio of shares held or acquired, or determining whether the company or related party becomes the largest shareholder pursuant to paragraph (1) 1, 2, or 5. <Amended by Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007> |
| (6) | A report on a business combination under paragraph (1) shall be filed within 30 days from the date of the business combination: Provided, That, if at least one company is a large company among companies participating in a business combination in any of the manners provided for in paragraph (1) 1, 2, 4, or 5 (excluding cases prescribed by Presidential Decree), a report on the business combination shall be filed within a period beginning on the date prescribed by Presidential Decree, such as the date on which a merger contract is concluded, and ending on the date prior to the date of the business combination. <Amended by Act No. 5813, Feb. 5, 1999; Act No. 7315, Dec. 31, 2004; Act No. 9554, Mar. 25, 2009> |
| (7) | Upon receipt of a report filed under paragraph (6), the Fair Trade Commission shall review whether the business combination reported is subject to Article 7 within 30 days from the filing date of the report and shall give notice of the results thereof to the relevant reporter: Provided, That the Fair Trade Commission may extend the period by up to 90 days, beginning on the date following the expiration of the 30-day period, where deemed necessary. <Newly Inserted by Act No. 11406, Mar. 21, 2012> |
| (8) | A person required to report under the proviso to paragraph (6) shall not do such acts as holding shares, filing for merger registration, fulfilling a contract to acquire a business by transfer, or subscribing for a share until before the person is given notice of the results of review by the Fair Trade Commission under paragraph (7). <Amended by Act No. 7315, Dec. 31, 2004; Act No. 11406, Mar. 21, 2012> |
| (9) | A person who intends to conduct a business combination provided for in Article 7 (1) may request the Fair Trade Commission to review whether the business combination is categorized as practices substantially restricting competition even before the filing period specified in paragraph (6). <Amended by Act No. 5813, Feb. 5, 1999; Act No. 6371, Jan. 16, 2001; Act No. 7315, Dec. 31, 2004; Act No. 11406, Mar. 21, 2012> |
| (10) | Upon receipt of a request for review under paragraph (9), the Fair Trade Commission shall give notice of the results thereof to the requester within 30 days: Provided, That the Fair Trade Commission may extend the period by up to 90 days beginning on the date following the expiration of such 30-day period, where deemed necessary. <Amended by Act No. 5813, Feb. 5, 1999; Act No. 6371, Jan. 16, 2001; Act No. 7315, Dec. 31, 2004; Act No. 11406, Mar. 21, 2012> |
| (11) | Where two or more companies are required to file a report under paragraph (1), such companies shall file the report jointly: Provided, That the foregoing shall not apply where the Fair Trade Commission has designated one of such companies that belong to a business group as an agent to file the report (hereafter referred to as "agent" in this Article), as prescribed by Presidential Decree, and the agent files the report. <Amended by Act No. 11406, Mar. 21, 2012> |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
| Article 12-2 (Special Cases concerning Procedures for Reporting Business Combination) |
| (1) | A person that applies for approval, recommendation of permission for change, etc. (hereafter referred to as "approval, etc." in this Article) of establishment of a corporation, a merger of corporations, or change of the largest shareholder, etc. prescribed in the following (hereafter referred to as "establishment, etc. of a corporation" in this Article) may file the Form for Reporting Business Combination when applying for approval, etc. to an agency in charge of granting approval, etc. (including the Korea Communications Commission; hereafter the same shall apply in this Article) where the establishment, etc. of a corporation is subject to reporting pursuant to Article 12 (1): <Amended by Act No. 9554, Mar. 25, 2009> |
| 1. | Deleted; <by Act No. 10166, Mar. 22, 2010> |
| 2. | A merger of corporations referred to in Article 15 (1) 1 of the Broadcasting Act (limited to a corporation that is a CATV broadcasting business entity, as defined in subparagraph 3 (b) of Article 2 of the Broadcasting Act; hereafter referred to as "CATV broadcasting business entity" in this Article); |
| 3. | Where it intends to be the largest shareholder in a CATV broadcasting business entity pursuant to Article 15-2 (1) of the Broadcasting Act or to substantially control the management of a CATV broadcasting business entity. |
| (2) | Where an applicant for approval, etc. files the Form for Reporting Business Combination with the agency in charge of granting approval, etc. pursuant to paragraph (1), the date on which such agency receives the Form shall be deemed the date of reporting under Article 12 (1). |
| (3) | Upon receipt of the Form for Reporting Business Combination filed under paragraph (1), the agency in charge of granting approval, etc. shall promptly forward the Form for Reporting Business Combination to the Fair Trade Commission. |
| (4) | A person required to report a business combination pursuant to the proviso to Article 12 (6) may also file an application for approval, etc. of establishment, etc. of a corporation when filing a report on the business combination with the Fair Trade Commission. |
| (5) | Upon receipt of an application for approval, etc. of establishment, etc. of a corporation filed under paragraph (4), the Fair Trade Commission shall promptly forward such application to the agency in charge of granting approval, etc. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 13 (Reporting on Shareholding Status, etc.) |
| (1) | Every member company of a business group subject to limitations on cross shareholding or a business group subject to limitations on debt guarantees shall file with the Fair Trade Commission a report on shareholder’s shareholding status, financial standing, and status of shareholding in other domestic companies, as prescribed by Presidential Decree. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 6651, Jan. 26, 2002; Act No. 9554, Mar. 25, 2009> |
| (2) | Every member company of a business group subject to limitations on debt guarantees shall file with the Fair Trade Commission a report on the status of debt guarantees that it has provided for its domestic affiliates after obtaining confirmation from a domestic financial institution, as prescribed by Presidential Decree. <Newly Inserted by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 6651, Jan. 26, 2002> |
| (3) | The proviso to Article 12 (11) shall apply mutatis mutandis to filing reports pursuant to paragraphs (1) and (2). <Amended by Act No. 5235, Dec. 30, 1996; Act No. 6371, Jan. 16, 2001; Act No. 7315, Dec. 31, 2004; Act No. 11406, Mar. 21, 2012> |
| (4) | Deleted. <by Act No. 5235, Dec. 30, 1996> |
| Article 14 (Designation, etc. of Business Groups Subject to Limitations on Cross Shareholding, etc.) |
| (1) | The Fair Trade Commission shall designate a business group subject to limitations on cross shareholding and a business group subject to limitations on debt guarantees (hereinafter referred to as "business group subject to limitations on cross shareholding, etc."), as prescribed by Presidential Decree, and shall give notice of such designation to member companies of said business groups. <Amended by Act No. 4513, Dec. 8, 1992; Act No. 6651, Jan. 26, 2002; Act No. 9554, Mar. 25, 2009> |
| (2) | Articles 9, 10-2, 11, and 13 shall begin to apply from the date of receipt of the notice given under paragraph (1). <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 9554, Mar. 25, 2009> |
| (3) | Notwithstanding paragraph (2), where a company that receives notice informing that it has become a member company of a business group subject to limitations on cross shareholding, etc. designated under paragraph (1) or a company that receives notice informing that it has become a member company of a business group subject to limitations on cross shareholding, etc. as an affiliate of a business group subject to limitations on cross shareholding, etc. under Article 14-2 (1) is in violation of Article 9 (1) or (3), or 10-2 (1) as at the time of receipt of such notice, the company shall be subject to the following provisions: <Amended by Act No. 6043, Dec. 28, 1999; Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7428, Mar. 31, 2005; Act No. 9554, Mar. 25, 2009> |
| 1. | Where the company is in violation of Article 9 (1) or (3) (including where the company violates Article 9 (3) because any company, which issued the shares acquired or held by it, has been included in its affiliate), said provisions shall not apply for the one-year period beginning on the date of designation or inclusion; |
| 2. | Deleted; <by Act No. 9554, Mar. 25, 2009> |
| 3. | Where the company is in violation of Article 10-2 (1) (including where the company violates Article 10-2 (1) because any company for which it is providing a debt guarantee is included in its affiliate), said provisions shall not apply for the two-year period beginning on the date of designation or inclusion: Provided, That said provisions shall not apply until the end of rehabilitation procedures, if a company, as referred to in Article 10-2 (1), has commenced such rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act, and until the end of rehabilitation procedures, if a company, as referred to in Article 10-2 (1), is providing a debt guarantee for a company that has commenced such procedures, limited exclusively to said debt guarantee. |
| (4) | The Fair Trade Commission may request materials necessary for designating a business group under paragraph (1) from a company or its related parties. |
| (5) | Every member company (excluding any company that is being liquidated or has suspended its business for one year or more) of a business group subject to limitations on cross shareholding, etc. shall be audited by a certified public accountant, and the Fair Trade Commission shall use the adjusted balance sheet, as audited by the certified public accountant. <Newly Inserted by Act No. 5528, Feb. 24, 1998; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 14137, Mar. 29, 2016> |
| Article 14-2 (Inclusion in and Exclusion from Affiliates) |
| (1) | Upon the occurrence of an event that causes a company to be included in or to be excluded from affiliates of a business group subject to limitations on cross shareholding, etc., the Fair Trade Commission shall, at the request of the company (including its related parties; hereafter the same shall apply in this Article) or ex officio, examine whether the company qualifies for an affiliate, and either include the company in affiliates, or exclude it from affiliates. <Amended by Act No. 6651, Jan. 26, 2002> |
| (2) | The Fair Trade Commission may request the relevant company to submit materials, such as the structures of its shareholders and executives, status of debt guarantees, status of loans, transaction data, and other related materials, where deemed necessary for examination referred to in paragraph (1) |
| (3) | The Fair Trade Commission shall notify the relevant person of the results of its examination within 30 days after receipt of a request for examination under paragraph (1): Provided, That the Fair Trade Commission may extend such period by up to 60 days, if deemed necessary. |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 14-3 (Presumptive Date of Inclusion and Notice of Affiliates) |
Where a company that has received a request under Article 14 (4) or 14-2 (2) refuses to submit materials without just cause or submits false materials and thereby is not included in a business group subject to limitations on cross shareholding, etc. although it should have been included therein, the company shall be deemed to be included in a business group subject to limitations on cross shareholding, etc. and to be given notice of such inclusion on the date prescribed by Presidential Decree. <Amended by Act No. 6651, Jan. 26, 2002>
[This Article Newly Inserted by Act No. 5813, Feb. 5, 1999]
| Article 14-4 (Request for Confirmation of Materials to Relevant Institutions) |
The Fair Trade Commission may request the following institutions to confirm or investigate materials relating to the shareholding status of shareholders of domestic affiliates of a business group subject to limitations on cross shareholding, etc., materials relating to debt guarantees, materials relating to advanced payments, loans, or securities, materials relating to transactions or provision of real estate, and other necessary matters, if deemed necessary to enforce Articles 9 through 11 and 13 through 14-2: <Amended by Act No. 5491, Dec. 31, 1997; Act No. 5498, Jan. 8, 1998; Act No. 5528, Feb. 24, 1998; Act No. 6651, Jan. 26, 2002; Act No. 8631, Aug. 3, 2007; Act No. 8863, Feb. 29, 2008>
| 2. | Deleted; <by Act No. 5528, Feb. 24, 1998> |
| 3. | Domestic financial institutions referred to in the subparagraphs of Article 10-2 (2); |
| 4. | Other institutions prescribed by Presidential Decree in relation to financial or stock transactions. |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 14-5 (Disclosure of Information on Status, etc. of Business Groups subject to Limitations on Cross Shareholding) |
| (1) | The Fair Trade Commission may make public the following information about member companies of a business group subject to limitations on cross shareholding for such purposes as preventing the excessive concentration of economic power and enhancing transparency in that business group: |
| 1. | Information prescribed by Presidential Decree about the general status, corporate governance structure, etc. of member companies of the business group subject to limitations on cross shareholding; |
| 2. | Information prescribed by Presidential Decree about investments, debt guarantees, business relations, etc. among the member companies of the business group subject to limitations on cross shareholding or between a member company of the business group subject to limitations on cross shareholding and its related parties. |
| (2) | The Fair Trade Commission may establish and operate an information system to efficiently process and make public the information referred to in the subparagraphs of paragraph (1). |
[This Article Newly Inserted by Act No. 8382, Apr. 13, 2007]
| Article 15 (Prohibition on Unlawful Practices) |
| (1) | No one shall engage in unlawful practices to circumvent Article 7 (1), 8-2 (2) through (5), 8-3, 9, 9-2, 10-2 (1), or 11. <Amended by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 5813, Feb. 5, 1999; Act No. 6043, Dec. 28, 1999; Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007; Act No. 9554, Mar. 25, 2009; Act No. 12334, Jan. 24, 2014> |
| (2) | Types of and standards for the unlawful practices referred to in paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| Article 16 (Corrective Measures, etc.) |
| (1) | Where a business entity violates or is likely to violate Article 7 (1), 8-2 (2) through (5), 8-3, 9, 9-2, 10-2 (1), 11, 11-2 through 11-4, or 15, the Fair Trade Commission may order the business entity [referring to the companies participating in a business combination in the case of a violation of Article 7 (1) (including their related parties where it is impracticable to correct negative effects of restricting competition only by ordering the companies participating in the business combination to take corrective measures or it is necessary to correct negative effects of restricting competition in the business area in which the related party to the companies participating in the business combination operating)] or the violator to take any of the following corrective measures. In such cases, the Fair Trade Commission shall issue an order within the period prescribed in Article 12 (7), if issued upon receipt of a report filed under the proviso to Article 12 (6): <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 5813, Feb. 5, 1999; Act No. 6043, Dec. 28, 1999; Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007; Act No. 9554, Mar. 25, 2009; Act No. 12334, Jan. 24, 2014> |
| 1. | Stopping engaging in the relevant practice; |
| 2. | Disposing all or some of the shares; |
| 3. | Requiring the executive to resign; |
| 4. | Transferring its business; |
| 5. | Revoking the debt guarantee; |
| 6. | Publishing the fact that it is ordered to take a corrective measure; |
| 7. | Imposing restrictions on the business practices or business scope to prevent the negative effects of restricting competition caused by the business combination; |
| 7-2. | Performing the duty of disclosure or correcting the content of disclosure; |
| 8. | Other measures necessary to correct the relevant violation. |
| (2) | Where companies are merged or a company is established in violation of Article 7 (1), 8-3, or 12 (8), the Fair Trade Commission may file a lawsuit to nullify said merger or establishment of the relevant company. <Amended by Act No. 5335, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007; Act No. 11406, Mar. 21, 2012> |
| (3) | The Fair Trade Commission may determine and publicly notify standards for taking the corrective measures referred to in the subparagraphs of paragraph (1) for violations of Article 7 (1). <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
| Article 17 (Penalty Surcharges) |
| (1) | The Fair Trade Commission may impose a penalty surcharge on a company that has acquired or held shares in violation of Article 9 or 9-2 in an amount not exceeding ten percent of the acquisition value of the shares so acquired or held. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 6043, Dec. 28, 1999; Act No. 9554, Mar. 25, 2009; Act No. 12334, Jan. 24, 2014> |
| (2) | The Fair Trade Commission may impose a penalty surcharge on a company that has provided a debt guarantee in violation of Article 10-2 (1) in an amount not exceeding ten percent of the amount of the debt guarantee so provided. <Newly Inserted by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 6371, Jan. 16, 2001> |
| (3) | Deleted. <by Act No. 5813, Feb. 5, 1999> |
| (4) | The Fair Trade Commission may impose a penalty surcharge on a person who has violated any provision of Article 8-2 (2) through (5) in an amount not exceeding ten percent of the following applicable amount: <Amended by Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007; Act No. 14137, Mar. 29, 2016> |
| 1. | The amount of liabilities that exceeds twice the total amount of capital on the balance sheet prescribed by Presidential Decree (hereafter referred to as "standard balance sheet" in this paragraph), where the person has violated Article 8-2 (2) 1; |
| 2. | The aggregate book value of a subsidiary’s shares, as presented on its standard balance sheet, multiplied by the following applicable ratio minus the holding ratio of the subsidiary’s shares, and then divided by the holding ratio of the subsidiary’s shares, where the person has violated Article 8-2 (2) 2: |
| (a) | 20 percent, where such subsidiary is a listed corporation, an overseas listed corporation, a joint stock corporation, or a subsidiary of a venture holding company; |
| (b) | Deleted; <by Act No. 8382, Apr. 13, 2007> |
| (c) | 40 percent, where the subsidiary is not applicable under item (a); |
| 3. | The aggregate book value of the shares held in violation, as presented on the standard balance sheet, where the person has violated any of Article 8-2 (2) 3 through 5, (3) 2 or 3, (4) or (5); |
| 4. | The aggregate book value of a second-tier subsidiary’s shares, as presented on its standard balance sheet, multiplied by the following applicable ratio minus the holding ratio of the second-tier subsidiary’s shares, and then divided by the holding ratio of the second-tier subsidiary’s shares, where the person has violated Article 8-2 (3) 1: |
| (a) | 20 percent, where the second-tier subsidiary is a listed corporation, an overseas listed corporation, or a joint stock corporation; |
| (b) | 40 percent, where the second-tier subsidiary is not applicable under item (a). |
| Article 17-2 Deleted. <by Act No. 9554, Mar. 25, 2009> |
| Article 17-3 (Enforcement Fines) |
| (1) | The Fair Trade Commission may impose on a person who has failed to take a corrective measure ordered under Article 16 for his/her violation of Article 7 (1) within the specified period an enforcement fine not exceeding 3/10,000 of the following applicable amount per day: Provided, That the Fair Trade Commission may impose an enforcement fine not exceeding 2 million won per day on a person who has conducted a business combination provided for in Article 7 (1) 2: <Amended by Act No. 8631, Aug. 3, 2007> |
| 1. | The aggregate of the book value of shares acquired or held and liabilities underwritten, in the case of the business combination provided for in Article 7 (1) 1 or 5; |
| 2. | The aggregate of the book value of shares distributed in return for a merger and liabilities underwritten, in the case of the business combination provided for in Article 7 (1) 3; |
| 3. | The price for the acquisition of a business, in the case of the business combination provided for in Article 7 (1) 4. |
| (2) | The imposition, payment, collection, and refund of enforcement fines and other necessary matters shall be prescribed by Presidential Decree: Provided, That enforcement fines in arrears shall be collected in the same manner as delinquent national taxes are collected. |
| (3) | The Fair Trade Commission may entrust the Commissioner of the National Tax Service with the collection of enforcement fines or dispositions of enforcement fines in arrears under paragraphs (1) and (2). |
[This Article Newly Inserted by Act No. 5813, Feb. 5, 1999]
| Article 18 (Enforcing Compliance with Corrective Measures) |
| (1) | No person issued an order to dispose of shares pursuant to Article 16 (1) shall exercise voting rights in such shares from the date of receipt of the order. <Amended by Act No. 5335, Dec. 30, 1996; Act No. 8631, Aug. 3, 2007> |
| (2) | No person that has a cross shareholding in violation of Article 9 or a circular shareholding in violation of Article 9-2 shall exercise voting rights in all of such shares from the date of receipt of an order to take a corrective measure to the date on which the violation is corrected. <Amended by Act No. 5335, Dec. 30, 1996; Act No. 12334, Jan. 24, 2014> |
| (3) | and (4) Deleted. <by Act No. 9554, Mar. 25, 2009> |
[This Article Wholly Amended by Act No. 4513, Dec. 8, 1992]
CHAPTER IV RESTRICTIONS ON ILLEGAL CARTEL CONDUCT
| Article 19 (Prohibition on Illegal Cartel Conduct) |
| (1) | A business entity shall neither agree with any other business entity to jointly do the following acts that unfairly restrict competition (hereinafter referred to as "illegal cartel conduct") nor require any other business entity to engage in such illegal cartel conduct under contract, agreement, or arrangement or in any other manners: <Amended by Act No. 4513, Dec. 8, 1992; Act No. 4790, Dec. 22, 1994; Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007> |
| 1. | Determining, maintaining, or changing prices; |
| 2. | Determining terms and conditions for the transactions of goods or services, or for payments thereof; |
| 3. | Imposing limitations on production, delivery, transportation, or transaction of goods or limiting transaction of services; |
| 4. | Imposing limitations on the area in which it can make transactions or transaction partners; |
| 5. | Hindering or imposing limitations on the establishment or extension of facilities or the installation of equipment necessary to produce goods or to provide services; |
| 6. | Imposing limitations on kinds of, and standards for, goods or services to be produced or traded; |
| 7. | Jointly conducting and managing substantial business activities or establishing a company, etc. to jointly conduct and manage such substantial business activities; |
| 8. | Agreeing on a successful bidder, successful auctioneer, bidding price, successful tender or bid price, and other matters prescribed by Presidential Decree in a bidding or auction; |
| 9. | Any act substantially restricting competition in a particular business area by means of hindering or imposing limitations on the business activities or business of other business entities (including the business entities that has done such act), other than the acts provided for in subparagraphs 1 through 8. |
| (2) | Paragraph (1) shall not apply where illegal cartel conduct satisfies the conditions prescribed by Presidential Decree and is done for any of the following purposes subject to the prior-approval of the Fair Trade Commission: <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| 1. | Industrial rationalization; |
| 2. | Research and technical development; |
| 3. | Recovery from economic recession; |
| 4. | Industrial restructuring; |
| 5. | Rationalization of terms and conditions of transactions; |
| 6. | Improvement of competitiveness of small and medium enterprises. |
| (3) | Matters necessary in relation to standards, methods, and procedures for approval under paragraph (2) and modification of approved matters shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999> |
| (4) | Any contract, etc. made between business entities agreeing on any of the illegal cartel conduct provided for in paragraph (1) is null and void. |
| (5) | Where there is a reasonable probability to believe that two or more business entities jointly did any of the acts provided for in the subparagraphs of paragraph (1), taking into account all circumstances, such as the characteristic of the relevant business area, goods, or services, why the act was done from the economic perspectives and its effects on the economy, and how and how often the business entities have contacted, it is presumed that such business entities have agreed to do any of the acts provided for in the subparagraphs of paragraph (1). <Amended by Act No. 8631, Aug. 3, 2007> |
| (6) | The Fair Trade Commission may determine and publicly notify the guidelines for examination of the illegal cartel conduct. <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
| Article 19-2 (Measures to Prevent Cartel Conduct in Relation to Bidding in Public Sector) |
| (1) | The Fair Trade Commission may request bidding-related materials and cooperation from the heads of central administrative agencies, local governments, or public corporations subject to the Act on the Management of Public Institutions (hereinafter referred to as "heads of public institutions") to uncover or prevent illegal cartel conduct related to bidding ordered by the State, local governments or public corporations subject to the Act on the Management of Public Institutions. <Amended by Act No. 9554, Mar. 25, 2009> |
| (2) | Upon making a bid announcement or deciding on a successful bidder, the heads of public institutions prescribed by Presidential Decree shall submit bidding-related information to the Fair Trade Commission. |
| (3) | The scope of bidding-related information to be submitted to the Fair Trade Commission pursuant to paragraph (2) and procedures for submission shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 20 Deleted. <by Act No. 5235, Dec. 30, 1996> |
| Article 21 (Corrective Measures) |
Where a business entity engages in any illegal cartel conduct provided for in Article 19 (1), the Fair Trade Commission may order the business entity to stop the illegal cartel conduct; to publish the fact that it is ordered to correct such illegal cartel conduct; or to take other measures necessary for correction. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 7315, Dec. 31, 2004>
| Article 22 (Penalty Surcharges) |
Where a business entity engages in any illegal cartel conduct provided for in Article 19 (1), the Fair Trade Commission may impose on the business entity a penalty surcharge not exceeding ten percent of the sales prescribed by Presidential Decree: Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding two billion won in the event that no sales have been made. <Amended by Act No. 7315, Dec. 31, 2004>
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
| Article 22-2 (Leniency Program, etc.) |
| (1) | Any of the following persons is eligible for mitigation of the corrective measures provided for in Article 21 or for full or partial exemption from the penalty surcharges provided for in Article 22, or may be exempted from a criminal charge filed under Article 71: <Amended by Act No. 6371, Jan. 16, 2001; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007; Act No. 11937, Jul. 16, 2013> |
| 1. | A person who voluntarily reports the illegal cartel conduct; |
| 2. | A person who cooperates in an investigation in such a manner as furnishing evidence. |
| (2) | Where a person granted mitigation of corrective measures or full or partial exemption from penalty surcharges pursuant to paragraph (1) re-violates Article 19 (1) on or after the date of the mitigation or exemption, the person shall not be granted mitigation of corrective measures or exemption from penalty surcharge pursuant to paragraph (1) within five years from the date of the first mitigation or exemption. <Newly Inserted by Act No. 14137, Mar. 29, 2016> |
| (3) | Neither the Fair Trade Commission nor any public official under its control shall provide or divulge any information and data related to voluntary reporting, such as the identity of a person who has voluntarily reported or has cooperated in an investigation, to any person other than those dealing with the pending case, except in cases prescribed by Presidential Decree, such as necessary for performing a litigation. <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
| (4) | Matters necessary for the scope of persons eligible for mitigation or exemption under paragraph (1), criteria for and scope of mitigation or exemption, and further details about prohibition on the provision and divulgence of information and data pursuant to paragraph (3) shall be prescribed by Presidential Decree. <Amended by Act No. 6371, Jan. 16, 2001; Act No. 8631, Aug. 3, 2007; Act No. 14137, Mar. 29, 2016> |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
CHAPTER V PROHIBITION ON UNFAIR TRADE PRACTICES
| Article 23 (Prohibition on Unfair Trade Practices) |
| (1) | No business entity shall do any of the following acts that are likely to hinder fair trade (hereinafter referred to as "unfair trade practices"), or require its affiliates or other business entities to do such act: <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 8382, Apr. 13, 2007; Act No. 12095, Aug. 13, 2013> |
| 1. | Unfairly refusing a transaction or discriminating against a certain transaction partner; |
| 2. | Unfairly excluding a competitor; |
| 3. | Unfairly soliciting or coercing customers of competitors to make transactions with it; |
| 4. | Making a transaction with a certain transaction partner unfairly taking advantage of its bargaining position; |
| 5. | Making a transaction under terms and conditions that unfairly restrict business activities of a transaction partner or disrupting business activities of other business entities; |
| 6. | Deleted; <by Act No. 5814, Feb. 5, 1999> |
| 7. | Assisting a related party or other company by doing any of the following acts: |
| (a) | Providing advanced payments, loans, human resources, real estate, securities, goods, services, intangible property rights, etc. for the related party or other company or making a transaction with the related party or other company under substantially advantageous terms; |
| (b) | Making a transaction through the related party or other company, acting as an intermediary, that does not play a practical role in the transaction, despite making such transaction with other business entity is substantially advantageous; |
| 8. | Any act that is likely to hinder fair trade, other than those listed in subparagraphs 1 through 7. |
| (2) | Neither any related party nor company shall accept any assistance that might constitute the act provided for in paragraph (1) 7 from any other business entity. <Newly Inserted by Act No. 12095, Aug. 13, 2013> |
| (3) | Types of and criteria for the unfair trade practices shall be prescribed by Presidential Decree. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 12095, Aug. 13, 2013> |
| (4) | The Fair Trade Commission may establish and publicly notify guidelines to be observed by business entities, if necessary to prevent the business entities from violating paragraph (1). <Amended by Act No. 12095, Aug. 13, 2013> |
| (5) | A business entity or a business entities' organization may voluntarily establish a covenant (hereinafter referred to as "fair competition covenant") to prevent unfair solicitation of customers. <Amended by Act No. 5814, Feb. 5, 1999; Act No. 12095, Aug. 13, 2013> |
| (6) | A business entity or a business entities' organization may request the Fair Trade Commission to examine whether the fair competition covenant it has established pursuant to paragraph (5) is in violation of paragraph (1) 3 or 6. <Amended by Act No. 12095, Aug. 13, 2013> |
| Article 23-2 (Prohibition on Provision, etc. of Undue Benefits to Related Parties) |
| (1) | No member company of a business group that meets the criteria prescribed by Presidential Decree in terms of its total assets, etc. shall make any undue benefits attributable to a related party (limited to the same person and his/her relatives; hereafter the same shall apply in this Article) or to an affiliate whose shares are held by a related party in at least the percentage prescribed by Presidential Decree, by doing any of the following acts. In such cases, types of or criteria for the following acts shall be prescribed by Presidential Decree: |
| 1. | Making a transaction with the related party or affiliate under terms that are substantially more advantageous than terms that have been applied, or deemed to be applied to transactions between unrelated parties; |
| 2. | Providing the related party or affiliate with a business opportunity that will bring the company substantial benefits, if it conducts such business directly or through any company controlled by it; |
| 3. | Making a transaction of cash or any other financial instrument with the related party under substantially advantageous terms; |
| 4. | Making a transaction of a certain scale with the related party or affiliate without giving due consideration to its business ability, financial standing, credit rating and technical power, the price, terms and conditions of the transaction, etc. or without comparing with other business entities. |
| (2) | Paragraph (1) 4 shall not apply to transactions prescribed by Presidential Decree, if it is inevitable for achieving the objectives of such transactions, in terms of increasing the efficiency of enterprises, confidentiality, and urgency. |
| (3) | The other party to a transaction or that is to be provided with a business opportunity under paragraph (1) shall neither make the transaction nor be provided with the business opportunity, if it might constitute any of the acts provided for in the subparagraphs of paragraph (1). |
| (4) | Any related party shall neither direct any third person to do any act provided for in paragraph (1) or (3) nor involve in such act. |
[This Article Newly Inserted by Act No. 12095, Aug. 13, 2013]
| Article 23-3 (Prohibition on Retaliatory Measures) |
No business entity shall discontinue a transaction, reduce the transaction volume, or give any disadvantage to a business entity that has done any of the following acts in relation to any of the unfair trade practices provided for in Article 23 (1) because of such act, or require any affiliate or business entity to do such act:
| 1. | Filing an application for dispute mediation under Article 48-6 (1); |
| 2. | Reporting under Article 49 (2); |
| 3. | Cooperating in an investigation conducted by the Fair Trade Commission under Article 50. |
[This Article Newly Inserted by Act No. 12708, May 28, 2014]
| Article 24 (Corrective Measures) |
When a business entity (referring to a related party or relevant company for the purposes of Articles 23 (2) and 23-2) violates Article 23 (1) or (2), 23-2 or 23-3, the Fair Trade Commission may order the business entity to stop engaging in the relevant unfair trade practices or to stop providing undue benefits to the related party; to take measures to prevent the recurrence thereof; to stop taking a retaliatory measure; to delete the pertinent provisions from the contract; to publish the fact that it is ordered to take corrective measures; or to take other measures necessary to correct such violation. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5814, Feb. 5, 1999; Act No. 7315, Dec. 31, 2004; Act No. 12095, Aug. 13, 2013; Act No. 12708, May 28, 2014>
| Article 24-2 (Penalty Surcharges) |
| (1) | Where a business entity violates Article 23 (1) (excluding subparagraph 7) or 23-3, the Fair Trade Commission may impose on the business entity a penalty surcharge not exceeding two percent of the sales prescribed by Presidential Decree: Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding five hundred million won in the event that no sales have been made. <Amended by Act No. 6043, Dec. 28, 1999; Act No. 7315, Dec. 31, 2004; Act No. 12095, Aug. 13, 2013; Act No. 12708, May 28, 2014> |
| (2) | Where a related party or company violates Article 23 (1) 7 or (2), or 23-2 (1) or (3), the Fair Trade Commission may impose on the related party or company a penalty surcharge not exceeding five percent of the sales prescribed by Presidential Decree: Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding two billion won in the event that no sales have been made. <Newly Inserted by Act No. 12095, Aug. 13, 2013> |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
CHAPTER VI BUSINESS ENTITIES' ORGANIZATION
| Article 25 Deleted. <by Act No. 5813, Feb. 5, 1999> |
| Article 26 (Prohibited Acts of Business Entities' Organization) |
| (1) | No business entities' organization shall do any of the following acts: <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999> |
| 1. | Unfairly restricting competition by doing any of the acts provided for in the subparagraphs of Article 19 (1); |
| 2. | Restricting the number of business entities that are currently operating or will operate in a particular business area; |
| 3. | Unfairly restricting the business or business activities of member business entities (referring to the business entities that are members of the business entities' organization; hereinafter the same shall apply); |
| 4. | Requiring or assisting a business entity to engage in any of the unfair trade practices provided for in the subparagraphs of Article 23 (1), or the practice of resale price maintenance provided for in Article 29; |
| 5. | Deleted. <by Act No. 5814, Feb. 5, 1999> |
| (2) | Article 19 (2) and (3) shall apply mutatis mutandis to paragraph (1) 1. In such cases, a "business entity" shall be construed as a "business entities' organization." <Amended by Act No. 5235, Dec. 30, 1996; Act No. 8631, Aug. 3, 2007> |
| (3) | The Fair Trade Commission may establish and publicly notify guidelines to be observed by business entities' organizations, if necessary to prevent the business entities’ organization from violating paragraph (1). |
| (4) | The Fair Trade Commission shall seek opinions from the heads of the relevant administrative agencies to establish the guidelines referred to in paragraph (3). |
| Article 27 (Corrective Measures) |
Where a business entities' organization violates Article 26, the Fair Trade Commission may order the business entities' organization (including its member business entities, if necessary) to stop engaging in the violation, to publish the fact that it is ordered to take corrective measures; or to take other measures necessary to correct such violation. <Amended by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 5814, Feb. 5, 1999; Act No. 7315, Dec. 31, 2004>
[This Article was amended by Act No. 7315 promulgated on December 31, 2004 pursuant to the declaration of unconstitutionality made on January 31, 2002]
| Article 28 (Penalty Surcharges) |
| (1) | Where a business entities' organization commits any of the violations provided for in the subparagraphs of Article 26 (1), the Fair Trade Commission may impose on the business entities' organization a penalty surcharge not exceeding five hundred million won. |
| (2) | The Fair Trade Commission may impose on a business entity involved in practices violating Article 26 (1) 1 a penalty surcharge not exceeding ten percent of the sales prescribed by Presidential Decree: Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding two billion won in the event that no sales have been made. <Amended by Act No. 11406, Mar. 21, 2012> |
| (3) | The Fair Trade Commission may impose on a business entity involved in practices violating Article 26 (1) 2 through 4 a penalty surcharge not exceeding five percent of the sales prescribed by Presidential Decree: Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding one billion won in the event that no sales have been made. <Newly Inserted by Act No. 11406, Mar. 21, 2012; Act No. 14137, Mar. 29, 2016> |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
CHAPTER VII RESTRICTIONS ON PRACTICE OF RESALE PRICE MAINTENANCE
| Article 29 (Restrictions on Practice of Resale Price Maintenance) |
| (1) | No business entity shall engage in the practice of resale price maintenance: Provided, That the foregoing shall not apply to the practice of the maximum price maintenance that prevents the transactions of certain goods or services at a price higher than the specified price, if just cause exists. <Amended by Act No. 6371, Jan. 16, 2001> |
| (2) | Paragraph (1) shall not apply to literary works prescribed by Presidential Decree and to goods that satisfy all of the following conditions and have been pre-designated by the Fair Trade Commission as eligible for the practice of resale price maintenance: |
| 1. | It shall be possible to readily identify that the quality of the goods remains the same; |
| 2. | The goods shall be for daily use by ordinary customers; |
| 3. | Free competition shall take place with respect to the goods. |
| (3) | A business entity shall file an application with the Fair Trade Commission, as prescribed by Presidential Decree, if it intends to obtain designation of goods under paragraph (2). |
| (4) | The Fair Trade Commission shall publicly notify goods whenever it designates such goods as eligible for the practice of resale price maintenance under paragraph (2). |
| Article 30 (Modification of Resale Price Maintenance) |
Where a business entity who produces or sells goods designated and publicly notified by the Fair Trade Commission pursuant to Article 29 (4) concludes a contract for determining and maintaining the resale price of said goods, which is likely to substantially undermine consumer interests, the Fair Trade Commission may order the terms and conditions of the contract to be modified. <Amended by Act No. 8631, Aug. 3, 2007>
[This Article Wholly Amended by Act No. 5813, Feb. 5, 1999]
| Article 31 (Corrective Measures) |
Where a business entity violates Article 29 (1), the Fair Trade Commission may order the business entity to stop the violation; to publish the fact that it is ordered to take a corrective measure; or to take other measures necessary to correct such violation. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 7315, Dec. 31, 2004>
| Article 31-2 (Penalty Surcharges) |
Where a business entity engages in the practice of resale price maintenance provided for in Article 29, the Fair Trade Commission may impose on the business entity a penalty surcharge not exceeding two percent of the sales prescribed by Presidential Decree: Provided, That the Fair Trade Commission may impose a penalty surcharge not exceeding five hundred million won in the event that no sales have been made.
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
CHAPTER VIII (Articles 32 through 34-2) Deleted.
CHAPTER IX ENFORCEMENT AGENCY
| Article 35 (Establishment of the Fair Trade Commission) |
| (1) | The Fair Trade Commission shall be established under the jurisdiction of the Prime Minister in order to independently perform the functions provided for in this Act. |
| (2) | The Fair Trade Commission shall perform its functions as a central administrative agency subject to Article 2 of the Government Organization Act. <Amended by Act No. 8631, Aug. 3, 2007> |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
| Article 36 (Functions of the Fair Trade Commission) |
Functions of the Fair Trade Commission are as follows:
| 1. | To regulate the practices of abusing market-dominant positions; |
| 2. | To restrict business combinations and the concentration of economic power; |
| 3. | To regulate the illegal cartel conduct and competition-restricting practices on the part of business entities' organizations; |
| 4. | To regulate unfair trade practices and the practice of resale price maintenance; |
| 5. | Deleted; <by Act No. 14137, Mar. 29, 2016> |
| 6. | Functions relating to competition-facilitating policies through consultation and coordination on competition-restricting Acts and subordinate statutes and administrative measures; |
| 7. | Other functions under the jurisdiction of the Fair Trade Commission in accordance with any other Act or subordinate statute. |
| Article 36-2 (International Cooperation of the Fair Trade Commission) |
| (1) | The Government of the Republic of Korea may conclude a treaty to enforce this Act with any foreign government within the extent that does not violate Korean Acts and does not infringe on interests of the Republic of Korea. |
| (2) | The Fair Trade Commission may render assistance to a foreign government in enforcing its law according to the treaty concluded with the foreign government under paragraph (1). |
| (3) | The Fair Trade Commission may render assistance to a foreign country at the request of the foreign country to enforce its law, although no treaty has been concluded with such foreign country under paragraph (1), only where the requesting country guarantees that it will comply with the Republic of Korea's request for assistance in the same or similar matters. |
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 37 (Organization, etc. of the Fair Trade Commission) |
| (1) | The Fair Trade Commission shall consist of a chairperson, a vice-chairperson, and nine commissioners four of whom shall be non-standing members. <Amended by Act No. 5235, Dec. 30, 1996> |
| (2) | Standing commissioners and non-standing commissioners of the Fair Trade Commission (hereinafter referred to as "commissioners") shall be appointed from among the following persons who have experience in, or specialized knowledge of, monopoly regulation, fair trade, or consumerism; the chairperson and the vice-chairperson shall be appointed by the President upon the recommendation of the Prime Minister; and the other commissioners shall be appointed or commissioned by the President upon the recommendation of the chairperson. In such cases, the chairperson shall undergo a hearing held by the National Assembly: <Amended by Act No. 4831, Dec. 23, 1994; Act No. 7796, Dec. 29, 2005; Act No. 8631, Aug. 3, 2007; Act No. 11406, Mar. 21, 2012; Act No. 13450, Jul. 24, 2015> |
| 1. | A person who has served as a public official of Grade II or higher (including members in general service of the Senior Executive Service); |
| 2. | A person who has a career as a judge, prosecutor, or attorney for 15 years or more; |
| 3. | A person with a major in law, economics, business administration, or consumerism, who has served for 15 years or more at a university or publicly authorized research institute as an associate professor or higher or in an equivalent position; |
| 4. | A person who has at least 15 years’ experience in business management and consumer protection activities. |
| (3) | The chairperson and the vice-chairperson shall be deemed public officials in political service and other standing commissioners shall be deemed members in general service of the Senior Executive Service in a fixed term position provided for in Article 26-5 of the State Public Officials Act. <Amended by Act No. 7796, Dec. 29, 2005; Act No. 13450, Jul. 24, 2015> |
| (4) | The chairperson, the vice-chairperson, and the secretary general of the Secretariat of the Fair Trade Commission established under Article 47 shall be government delegates, notwithstanding Article 10 of the Government Organization Act. <Newly Inserted by Act No. 5235, Dec. 30, 1996; Act No. 5529, Feb. 28, 1998; Act No. 8631, Aug. 3, 2007> |
| Article 37-2 (Types of Meetings) |
Meetings of the Fair Trade Commission shall be classified into a meeting (hereinafter referred to as "plenary session") attended by all commissioners and a meeting (hereinafter referred to as "sub-committee meeting") attended by three commissioners, including one standing commissioner.
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 37-3 (Subjects of Plenary Sessions and Sub-Committee Meetings) |
| (1) | The following matters shall be deliberated and resolved on at the plenary sessions: <Amended by Act No. 6371, Jan. 16, 2001> |
| 1. | Interpretation or application of Acts and subordinate statutes, regulations, and public notifications under the jurisdiction of the Fair Trade Commission; |
| 2. | Objections filed under Article 53; |
| 3. | Matters not resolved on at a sub-committee meeting, or which a sub-committee meeting has decided to refer them to the plenary session; |
| 4. | Establishment and amendment of regulations or public notifications; |
| 5. | Matters that have far-reaching effects on the economy or those recognized as necessary to be dealt with at the plenary session. |
| (2) | Matters other than those provided for paragraph (1) shall be deliberated and resolved on at the sub-committee meetings. |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| (1) | The chairperson shall represent the Fair Trade Commission. |
| (2) | The chairperson may attend and speak at the meetings of the State Council. |
| (3) | If the chairperson is unable to perform his/her duties due to an accident, the vice-chairperson shall act on behalf of the chairperson. If both the chairperson and the vice-chairperson are unable to perform their duties due to an accident, standing commissioners shall act on behalf of them in the order of seniority. <Amended by Act No. 5813, Feb. 5, 1999> |
| Article 39 (Term of Office of Commissioner) |
The chairperson, vice-chairperson, and commissioners shall hold office for a term of three years and may be appointed for only one further term. <Amended by Act No. 6371, Jan. 16, 2001>
| Article 40 (Status Guarantee of Commissioners) |
No commissioner shall be removed or dismissed from office against his/her will, except in any of the following circumstances: <Amended by Act No. 13450, Jul. 24, 2015>
| 1. | Where a commissioner has been sentenced to imprisonment without prison labor or severer; |
| 2. | Where a commissioner becomes unable to perform his/her duties due to prolonged physical or mental weakness. |
| Article 41 (Prohibition on Commissioner's Political Activities) |
No commissioner shall join a political party or participate in any political activity.
| Article 42 (Proceedings and Quorum) |
| (1) | Proceedings of a plenary session shall be presided over by the chairperson and resolutions shall be passed with the concurring vote of a majority of all members. <Amended by Act No. 5813, Feb. 5, 1999> |
| (2) | Proceedings of a sub-committee meeting shall be presided over by the standing commissioner attending the meeting and resolutions shall be passed with the presence of all members and by the concurring vote of the members present. |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
| Article 43 (Making Public Hearings and Resolutions and Confidentiality of Agreement) |
| (1) | Hearings and resolutions by the Fair Trade Commission shall be made public: Provided, That the foregoing shall not apply where the Fair Trade Commission deems it necessary to protect trade secrets of a business entity or business entities' organization. |
| (2) | In principle, the hearings of the Fair Trade Commission shall be conducted orally but paper hearings are permitted, if necessary. <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
| (3) | No agreement on a resolution adopted by the Fair Trade Commission in relation to a case shall be made public. <Amended by Act No. 8631, Aug. 3, 2007> |
[This Article Wholly Amended by Act No. 5813, Feb. 5, 1999]
| Article 43-2 (Maintaining Order in Venue of Adjudicatory Proceedings) |
The chair of the plenary session or sub-committee meeting has the authority to issue orders necessary to maintain order in the venue of the adjudicatory proceedings to the parties, interested parties, witnesses, and observers present.
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 44 (Disqualification of, Challenge to, and Voluntary Refrainment by, Commissioners) |
| (1) | A commissioner is disqualified from deliberating and passing a resolution on a case, if: <Amended by Act No. 7315, Dec. 31, 2004> |
| 1. | The commissioner or his/her spouse or ex-spouse is a party to the case, or has an interest in or an obligation to the case jointly with other persons; |
| 2. | The commissioner is a relative of a party to the case or the commissioner or the corporation to which he/she belongs is an adviser or counsel of a party to the case in respect of its legal or managerial matters; |
| 3. | The commissioner or the corporation to which he/she belongs has given testimony or expert opinions about the case; |
| 4. | The commissioner or the corporation to which he/she belongs is or was an agent of a party to the cases; |
| 5. | The commissioner or the corporation to which he/she belongs has involved in an act or omission that is the subject matter of the case; |
| 6. | The commissioner has investigated or examined the case as a public official of the Fair Trade Commission. |
| (2) | If the circumstances indicate that is would be difficult to expect fair deliberation and decisions of a member, any party may file a request for a challenge to the commissioner with the chairperson. In such case, the chairperson shall decide whether or not accept the request without referring the request to the Commission for resolution. |
| (3) | A commissioner may voluntarily refrain from deliberating and passing a resolution on a case on any of the grounds provided for in the subparagraphs of paragraph (1) or paragraph (2). |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
| Article 45 (Preparation and Correction of Written Resolutions) |
| (1) | Where the Fair Trade Commission passes a resolution on matters that are in violation of any provision of this Act, the Commission shall prepare a written resolution stating the grounds for such resolution, and the written resolution shall be signed and sealed by all commissioners who have passed the resolution. <Amended by Act No. 5813, Feb. 5, 1999> |
| (2) | Where there is an evident clerical error, numerical error, or other similar error in a written resolution, etc., the Fair Trade Commission may correct the written resolution, etc. either at the request of any party or ex officio. <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
| Article 46 (Timing of Determination as to Violation of the Act) |
Where the Fair Trade Commission passes a resolution on matters in violation of any provision of this Act, the Commission shall make a determination based on the facts that take place until the date it concludes a trial thereon.
[This Article Newly Inserted by Act No. 11406, Mar. 21, 2012]
| Article 47 (Establishment of Secretariat) |
The Secretariat shall be established in the Fair Trade Commission to perform the affairs of the Fair Trade Commission.
| Article 48 (Provisions concerning Organization) |
| (1) | Except as expressly provided for in this Act, matters necessary for the organization of the Fair Trade Commission shall be prescribed by Presidential Decree. |
| (2) | Except as expressly provided for in this Act, the operation of the Fair Trade Commission and other necessary matters shall be prescribed by the Regulations of the Fair Trade Commission. <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
CHAPTER IX-2 ESTABLISHMENT OF KOREA FAIR TRADE MEDIATION AGENCY AND DISPUTE MEDIATION
| Article 48-2 (Establishment, etc. of the Korea Fair Trade Mediation Agency) |
| (1) | The Korea Fair Trade Mediation Agency (hereinafter referred to as the "Mediation Agency") shall be established to perform the following duties: <Amended by Act No. 11406, Mar. 21, 2012> |
| 1. | To mediate disputes about suspected violations of Article 23 (1); |
| 2. | To mediate disputes prescribed by other Act to be dealt with by the Mediation Agency; |
| 3. | To research and analyze the trend of markets or industries and fair competition; |
| 4. | To research and analyze business entities’ transaction practices and behaviors; |
| 5. | Other duties entrusted by the Fair Trade Commission. |
| (2) | The Mediation Agency shall be a body corporate. |
| (3) | The president of the Mediation Agency shall be appointed by the chairperson of the Fair Trade Commission from among the persons, as referred to in the subparagraphs of Article 37 (2). |
| (4) | The Government may grant a contribution or subsidy to the Mediation Agency, within budgetary limits, to cover expenses incurred in its establishment and operation. |
| (5) | Except as expressly provided for in this Act, the provisions of the Civil Act governing incorporated foundations shall apply mutatis mutandis to the Mediation Agency. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-3 (Establishment and Organization of Fair Trade Dispute Mediation Council) |
| (1) | The Fair Trade Dispute Mediation Council (hereinafter referred to as the "Council") shall be established under the Mediation Agency to mediate disputes about suspected violations of Article 23 (1). |
| (2) | The Council shall be comprised of no more than seven members, including one chairperson. |
| (3) | The president of the Mediation Agency shall also serve as the chairperson of the Council. |
| (4) | Members of the Council shall be appointed or commissioned by the chairperson of the Fair Trade Commission on the recommendation of the president of the Mediation Agency from among the following persons who have experience in, and specialized knowledge of, monopoly regulation, fair trade, or consumerism. In such cases, at least one of the following persons shall be included in the members: |
| 1. | A person who has served as a public official meeting the requirements prescribed by Presidential Decree; |
| 2. | A person who has served as a judge, prosecutor, or attorney for at least the period prescribed by Presidential Decree; |
| 3. | A person with a major in law, economics, business administration, or consumerism, who has served for at least the period prescribed by Presidential Decree at a university or publicly authorized research institute as an associate professor or higher or in an equivalent position; |
| 4. | A person who has a career of at least the period prescribed by Presidential Decree in business administration or consumer protection activities. |
| (5) | Members of the Council shall hold office for a term of three years and may be consecutively appointed for further terms. |
| (6) | Where there is a vacancy in the office of a member of the Council, a member filling the vacancy shall be appointed pursuant to paragraph (4) and the member so appointed shall serve for the remainder of his/her predecessor's term. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-4 (Meetings of Council) |
| (1) | The chairperson of the Council shall call and preside over meetings of the Council. |
| (2) | A majority of all members of the Council shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of the members present. |
| (3) | Where the chairperson of the Council is unable to perform his/her duties due to an accident, the member of the Council designated by the chairperson of the Fair Trade Commission shall act on behalf of the first-mentioned chairperson. |
| (4) | Business entities that are parties to a dispute to be mediated (hereinafter referred to as "disputing parties") may attend a meeting of the Council to present their opinion. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-5 (Disqualification of, Challenge to, and Voluntary Refrainment by, Members of Council) |
| (1) | A member of the Council is disqualified from mediating a dispute, if: |
| 1. | The member or his/her spouse or ex-spouse is a party to the dispute to be mediated, or has an interest in or an obligation to such dispute jointly with other persons; |
| 2. | The member is or was a relative of a party to the dispute to be mediated: |
| 3. | The member or a corporation to which he/she belongs is an advisor or a counsel of a disputing party in respect of its legal or managerial matters, etc.; |
| 4. | The member or a corporation to which he/she belongs is or was an agent of a disputing party, or has given testimony or expert opinions about the dispute. |
| (2) | If the circumstances indicate that is would be difficult to expect fair mediation of a member, any disputing party may file a request for a challenge to the member with the Council. |
| (3) | A member of the Council may voluntarily refrain from mediating the relevant dispute on any of the grounds provided for in paragraph (1) or (2). |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-6 (Filing Applications, etc. for Mediation) |
| (1) | A business entity who suffers a loss due to a suspected violation of Article 23 (1) may apply for mediation by submitting a document (hereinafter referred to as "application for mediation") stating matters prescribed by Presidential Decree to the Fair Trade Commission or the Council: Provided, That the foregoing shall not apply in any of the following cases: |
| 1. | An act meeting the criteria prescribed by Presidential Decree because it is appropriate to deal with a suspected violation in accordance with Article 24 or 51 taking into account its details, nature, degree, etc.; |
| 2. | A case under investigation by the Fair Trade Commission pursuant to Article 49 before an application for mediation is filed. |
| (2) | Upon receipt of an application for mediation filed under paragraph (1), the Fair Trade Commission shall examine whether the suspected violation is applicable under either of the subparagraphs of paragraph (1) and shall forward the application for mediation to the Council along with its examination within the period prescribed by Presidential Decree from the date of receipt of the application. |
| (3) | Upon receipt of an application for mediation filed under paragraph (1) or (2), the Council shall immediately notify the Fair Trade Commission or disputing parties of the fact that it has received the application, as prescribed by Presidential Decree. |
| (4) | An application for medication filed under paragraph (1) has the effect of interrupting prescription: Provided, That the foregoing shall not apply where the application is withdrawn or rejected. <Newly Inserted by Act No. 14137, Mar. 29, 2016> |
| (5) | Where a judicial claim is made, bankruptcy procedures commence, seizure or provisional seizure, or provisional disposition occurs within six months in any case falling under the proviso to paragraph (4), prescription shall be deemed interrupted by the filing of the initial application for mediation. <Newly Inserted by Act No. 14137, Mar. 29, 2016> |
| (6) | Prescription interrupted under the main sentence of paragraph (4) shall begin to run anew from the time: <Newly Inserted by Act No. 14137, Mar. 29, 2016> |
| 1. | On which a settlement agreement is prepared after the dispute has been settled; |
| 2. | On which mediation ends upon failure to mediate the dispute. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-7 (Mediation, etc.) |
| (1) | The Council may advise disputing parties to agree on their dispute on their own initiative, or may prepare a settlement proposal and suggest the settlement proposal to the disputing parties. |
| (2) | The Council may conduct investigations or request disputing parties to submit relevant materials or to appear, where necessary to verify the fact regarding a dispute. |
| (3) | The Council shall reject an application for mediation filed in relation to an act or a case provided for in the subparagraphs of Article 48-6 (1). The foregoing shall also apply to a dispute notified by the Fair Trade Commission as related to an act or a case provided for in the subparagraphs of Article 48-6 (1). |
| (4) | The Council shall terminate the mediation process in any of the following cases: <Amended by Act No. 14137, Mar. 29, 2016> |
| 1. | Where disputing parties have reached an agreement either on their own initiative or by accepting the advice or settlement proposal of the Council; |
| 2. | Where disputing parties fails to reach an agreement through mediation even after 60 days (or 90 days, if both disputing parties have agreed to extend the period) from the filing date of an application for mediation under Article 48-6 (1) or from the date of receipt of notification given by Fair Trade Commission under paragraph (2) of the same Article; |
| 3. | Where there is no practical benefit in proceeding with the mediation process because either of the disputing parties refuses mediation, or files a lawsuit about a dispute to a court, etc. |
| (5) | When the Council rejects an application for mediation or terminates the mediation process, it shall submit a written report stating the progress of mediation, grounds for rejecting the application for mediation or for terminating the mediation process, etc. to the Fair Trade Commission without delay, and shall notify the disputing parties of the fact, as prescribed by Presidential Decree. |
| (6) | The Fair Trade Commission shall neither take any corrective measure pursuant to Article 24 nor give any recommendation for correction pursuant to Article 51 (1) to the disputing parties until the mediation process is terminated. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-8 (Preparation of Settlement Agreement and Validity thereof) |
| (1) | Where disputing parties reach an agreement through mediation, the Council shall prepare a settlement agreement to which the mediators and disputing parties shall affix their names and seals. <Amended by Act No. 14137, Mar. 29, 2016> |
| (2) | Where disputing parties have reached an agreement on their dispute on their own initiative and request the Council to prepare a settlement agreement before it commences the mediation process, the Council shall prepare the settlement agreement. <Amended by Act No. 14137, Mar. 29, 2016> |
| (3) | Disputing parties shall implement an agreement reached through mediation and submit the outcomes of implementation to the Fair Trade Commission. |
| (4) | Where an agreement is reached pursuant to paragraph (1) and the agreement is implemented, the Fair Trade Commission shall neither take any corrective measure pursuant to Article 24 nor give a recommendation for correction pursuant to Article 51 (1). |
| (5) | A settlement agreement prepared pursuant to paragraph (1) or (2) shall have the same effect as a court settlement. <Newly Inserted by Act No. 14137, Mar. 29, 2016> |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 48-9 (Organization, Operation, etc. of Council) |
Except as expressly provided for in Articles 48-3 through 48-8, the organization and operation of the Council, the mediation process, and other necessary matters, shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
CHAPTER X PROCEDURES FOR INVESTIGATIONS, ETC.
| Article 49 (Recognition, Reporting, etc. of Violations) |
| (1) | The Fair Trade Commission may, ex officio, conduct a necessary investigation when it recognizes a suspected violation of this Act. <Amended by Act No. 6371, Jan. 16, 2001> |
| (2) | Any person who recognizes a fact violating any provision of this Act may report such fact to the Fair Trade Commission. |
| (3) | The Fair Trade Commission shall, after conducting an investigation pursuant to paragraph (1) or (2), shall notify the relevant parties of its findings (including the details of corrective measures it intends to take as a result of such investigations) in writing. <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| (4) | The Fair Trade Commission shall neither order a corrective measure nor impose a penalty surcharge prescribed by this Act against any violation of this Act upon the expiration of the following periods: Provided, That the foregoing shall not apply where the Commission takes action based on the reason for a judgment of a court, if the corrective measure or the penalty surcharge imposed is revoked by such judgment: <Amended by Act No. 11406, Mar. 21, 2012> |
| 1. | Five years from the date on which the Fair Trade Commission commences an investigation on a violation of this Act; |
| 2. | Seven years from the date a violation of this Act is discontinued, where the Fair Trade Commission does not commence an investigation on the violation. |
| Article 50 (Investigations, etc. of Violations) |
| (1) | The Fair Trade Commission may take the following measures, as prescribed by Presidential Decree, if deemed necessary to enforce this Act: |
| 1. | Summoning the parties, interested parties, or witnesses to seek their opinions; |
| 2. | Designating an expert witness and requesting expert opinions; |
| 3. | Issuing an order requiring a business entity or business entities' organization or its executive or employee to report on the cost and its business administration or to submit other necessary materials or articles; or keeping the submitted materials or articles in custody. |
| (2) | The Fair Trade Commission may, if deemed necessary to enforce this Act, require public officials under its control (including those under the control of agencies entrusted with the Fair Trade Commission’s authority pursuant to Article 65) to enter the office or place of business of a business entity or business entities’ organization to examine its business and management, account books, documents, electronic data, voice-recording materials, video materials, and other materials or articles prescribed by Presidential Decree, and to take statements from the parties, interested parties, or witnesses at any designated place, as prescribed by Presidential Decree. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 6371, Jan. 16, 2001> |
| (3) | A public official who conducts an examination under paragraph (2) may order a business entity or business entities’ organization or its executives and employees to submit materials or articles necessary for such examination, or may take the submitted materials or articles in custody, as prescribed by Presidential Decree. |
| (4) | A public official who conducts an examination under paragraph (2) shall produce a certificate indicating his/her authority to interested persons. |
| (5) | Where the Fair Trade Commission deems it impossible to verify whether a person suspected of having circumvented Article 9 (1) in violation of Article 15 has engaged in unlawful practices in any manner other than using information or data about his/her financial transactions (hereinafter referred to as "financial transaction information"), or whether a company required to disclose its internal trading, which is suspected of having violated Article 23 (1) 7, has provided assistance, such as funds, in any manner other than using its financial transaction information, the Fair Trade Commission may, subject to resolution at a meeting provided for in Article 37-3, make a written request for financial transaction information to the head of a specific branch of a financial institution, stating the following, notwithstanding Article 4 of the Act on Real Name Financial Transactions and Confidentiality, and the head of the specific branch shall comply with the request: <Newly Inserted by Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007; Act No. 9554, Mar. 25, 2009> |
| 1. | Personal information of the relevant account holder; |
| 2. | The transaction duration requested; |
| 3. | The legal basis of the request; |
| 5. | Details of the financial transaction information requested (limited to the information about financial transactions that a person suspected of having involved in an act circumventing Article 9 or illegal assistance has made with financial institutions in relation to such act or illegal assistance); |
| 6. | Personal information, such as names and positions of the person in charge or the responsible person at the Fair Trade Commission. |
| (6) | Requests for financial transaction information made under paragraph (5) shall be limited to the minimum extent necessary to conduct investigations. <Newly Inserted by Act No. 7315, Dec. 31, 2004> |
| (7) | A financial institution shall notify in writing the relevant account holder of major details of the provided financial transaction information, the purpose of use, the recipient, and the date of provision within ten days after the provision of such financial transaction information to the Fair Trade Commission pursuant to paragraph (5). In such cases, Article 4-2 (4) of the Act on Real Name Financial Transactions and Confidentiality shall apply mutatis mutandis to expenses incurred in giving written notice. <Newly Inserted by Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007> |
| (8) | The Fair Trade Commission shall keep records on every request for financial transaction information it makes to financial institutions pursuant to paragraph (5) and keep such records for three years from the date of the request for financial transaction information. <Newly Inserted by Act No. 7315, Dec. 31, 2004> |
| (9) | No one provided with financial transaction information pursuant to paragraph (5) shall provide or divulge it to any third person or use it for any purpose other than for which it is provided. <Newly Inserted by Act No. 7315, Dec. 31, 2004> |
| Article 50-2 (Prohibition on Abusing Power of Investigation) |
Public officials in charge of investigations shall conduct the investigations to the minimum extent necessary to enforce this Act and shall not abuse the power of investigation for other purposes, etc.
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 50-3 (Application for Postponing Investigation, etc.) |
| (1) | Where a business entity or business entities' organization that is subjected to a disposition or an investigation by the Fair Trade Commission pursuant to Article 50 (1) through (3) finds it impracticable to implement the disposition or to undergo the investigation due to a natural disaster or other causes prescribed by Presidential Decree, the business entity or the business entities' organization may apply to the Fair Trade Commission to postpone such disposition and investigation, as prescribed by Presidential Decree. |
| (2) | Upon receipt an application for postponing the disposition and investigation under paragraph (1), the Fair Trade Commission shall postpone the disposition and investigation, if the reason for filing the application is deemed reasonable. |
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 51 (Recommendation for Correction of Violations) |
| (1) | Where a business entity or business entities' organization violates this Act, the Fair Trade Commission may determine a correction scheme and recommend that the business entity or business entities' organization comply with the correction scheme. |
| (2) | A person who has been recommended under paragraph (1) shall notify the Fair Trade Commission as to whether or not the person accepts the recommendation within ten days of receipt of the notice of recommendation for correction. <Amended by Act No. 5235, Dec. 30, 1996> |
| (3) | If a person, upon receipt of a recommendation for correction under paragraph (1), accepts the recommendation, a corrective measure provided for in this Act shall be deemed ordered. <Amended by Act No. 5235, Dec. 30, 1996> |
| Article 51-2 (Consent Decrees) |
| (1) | A business entity or business entities' organization under investigation or deliberation by the Fair Trade Commission (hereafter referred to as "applicant" in this Article through Article 51-5) may apply to the Fair Trade Commission to adopt a consent decree as provided for in paragraph (3) for such purposes as voluntarily correcting competition-restricting conditions arising from the conduct subject to investigation or deliberation (hereafter referred to as "relevant conduct" in this Article through Article 51-5), remedying consumer damages, and improving trading practices: Provided, That, where any of the following applies to the relevant conduct, the Fair Trade Commission shall proceed with deliberation procedures under this Act without adopting a consent decree: |
| 1. | Where the relevant conduct is illegal cartel conduct provided for in Article 19 (1); |
| 2. | Where the relevant conduct meets the requirements for filing a criminal charge provided for in Article 71 (2); |
| 3. | Where the applicant withdraws his/her application before the consent decree. |
| (2) | An applicant shall file a written application stating the following matters under paragraph (1): |
| 1. | Facts specifying the relevant conduct; |
| 2. | A correction scheme necessary to restore competition practices or to improve trading practices, such as discontinuing the relevant conduct, and restoring to the original state; |
| 3. | A correction scheme necessary to remedy or prevent damages to consumers, other business entities, etc. |
| (3) | Where the Fair Trade Commission determines, after having investigated the facts about the relevant conduct, that the correction scheme referred to in paragraph (2) 2 and 3 (hereinafter referred to as "correction scheme") meets all the following conditions, the Commission may suspend deliberation procedures on the relevant conduct and adopt a consent decree (hereinafter referred to as "consent decree") with the same intent as the correction scheme. In such cases, the Commission may amend the correction scheme after consulting with the applicant: |
| 1. | The correction scheme shall be consistent with corrective measures or other sanctions, which would be taken, if the relevant conduct were recognized as a violation of this Act; |
| 2. | The correction scheme shall be deemed appropriate to restore fair and free competition practices or trading practices or to protect consumers, other business entities, etc. |
| (4) | Any consent decree adopted by the Fair Trade Commission does not mean that the relevant conduct is recognized as a violation of this Act, and no one shall assert that the relevant conduct violates this Act on the grounds that the applicant is issued a consent decree. |
[This Article Newly Inserted by Act No. 11119, Dec. 2, 2011]
| Article 51-3 (Procedures for Adopting Consent Decrees) |
| (1) | The Fair Trade Commission shall determine whether to commence procedures for adopting a consent decree, comprehensively taking into account the necessity for taking swift measures or making direct compensation for consumer damages. |
| (2) | The Fair Trade Commission shall provide the interested parties, including the applicant, an opportunity to present opinions either by giving written notice of the following matters or by posting them on the Official Gazette or its website for at least 30 days before adopting a consent decree: |
| 1. | Overview of the relevant conduct; |
| 2. | The relevant provisions; |
| 3. | The correction scheme (or the correction scheme amended pursuant to the latter part of Article 51-2 (3)); |
| 4. | Other information useful for the interested parties, including the applicant, etc., to understand the relevant conduct: Provided, That information related to business secrete or privacy protection, or otherwise not suitable for public disclosure shall be excluded herefrom. |
| (3) | The Fair Trade Commission shall notify the heads of relevant administrative agencies of the matters referred to in the subparagraphs of paragraph (2) to seek their opinions and consult with the Prosecutor General. |
| (4) | The Fair Trade Commission shall adopt or revoke a consent decree subject to deliberation and resolution at the meeting classified under Article 37-3. |
| (5) | An applicant issued a consent decree adopted under paragraph (4) shall submit its plan to implement the consent decree and the outcomes of implementation to the Fair Trade Commission. |
| (6) | The Fair Trade Commission may determine and publicly notify the methods of filing written applications referred to in Article 51-2 (2) methods of seeking opinions, procedures for deliberation and resolution, and other necessary matters. |
[This Article Newly Inserted by Act No. 11119, Dec. 2, 2011]
| Article 51-4 (Revocation of Consent Decrees) |
| (1) | The Fair Trade Commission may revoke a consent decree in any of the following circumstances: |
| 1. | Where the correction scheme becomes inappropriate due to significant changes, etc. in facts, such as market conditions, based on which the Fair Trade Commission has adopted the consent decree; |
| 2. | Where the Fair Trade Commission has adopted the consent decree based on incomplete or inaccurate information provided by an applicant, or where an applicant has been issued the consent decree by fraud or other improper means; |
| 3. | Where an applicant fails to implement the consent decree without just cause. |
| (2) | The Fair Trade Commission may adopt a consent decree again upon receipt of an application filed under Article 51-2 (1) after it has revoked a consent decree pursuant to paragraph (1) 1. Articles 51-2 through 51-5 shall apply in such cases. |
| (3) | Where a consent decree is revoked pursuant to paragraph (1) 2 and 3, the Fair Trade Commission may proceed with deliberation procedures on the relevant conduct, which have been suspended pursuant to Article 51-2 (3). |
[This Article Newly Inserted by Act No. 11119, Dec. 2, 2011]
| Article 51-5 (Enforcement Fines, etc.) |
| (1) | The Fair Trade Commission may impose on a person who fails to implement a consent decree within a reasonable period without just cause an enforcement fine not exceeding 2 million won per day until the person implements the consent decree or the consent decree is revoked. |
| (2) | Article 17-3 (2) and (3) shall apply mutatis mutandis to the imposition, payment, collection, refund, etc. of enforcement fines. |
[This Article Newly Inserted by Act No. 11119, Dec. 2, 2011]
| Article 52 (Providing Opportunity to State Opinions) |
| (1) | The Fair Trade Commission shall provide relevant parties or interested parties with an opportunity to state their opinions before issuing an order to take a corrective measure or imposing a penalty surcharge against their violation of this Act. |
| (2) | Relevant parties or interested parties may attend meetings of the Fair Trade Commission to state their opinions or may submit necessary materials to the Fair Trade Commission. |
| Article 52-2 (Requests, etc. to Inspect Information) |
Any relevant party or interested party may request an inspection or a copy of information about the measures taken under this Act to the Fair Trade Commission. In such cases, the Fair Trade Commission shall comply with such request with the consent of the person who has submitted relevant information or if deemed necessary for the public interest.
[This Article Newly Inserted by Act No. 5813, Feb. 5, 1999]
| Article 53 (Filing Objections) |
| (1) | Any party dissatisfied with a measure taken by the Fair Trade Commission pursuant to this Act may file an objection stating the reasons therefor with the Fair Trade Commission within 30 days after receipt of notification of such measure. <Amended by Act No. 5813, Feb. 5, 1999> |
| (2) | The Fair Trade Commission shall decide on an objection filed under paragraph (1) within 60 days: Provided, That the Fair Trade Commission may extend the period by up to 30 days where it is unable to decide on the objection within such period due to any unavoidable cause. <Newly Inserted by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999> |
| Article 53-2 (Suspending Enforcement of Orders to Corrective Measures) |
| (1) | Where a person ordered to take a corrective measure under this Act files an objection pursuant to Article 53 (1) and the Fair Trade Commission deems it necessary to prevent an irrevocable loss that could incur by enforcing the measure or by continuing procedures, the Fair Trade Commission may, at the request of any party or ex officio, make a decision suspending the enforcement of such measure or continuation of the procedures (hereinafter referred to as "suspension of enforcement"). |
| (2) | The Fair Trade Commission may, at the request of any party or ex officio, revoke a decision on suspension of enforcement it has made, where the grounds for such suspension of enforcement cease to exist. <Amended by Act No. 5813, Feb. 5, 1999> |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 53-3 (Service of Documents) |
| (1) | Articles 14 through 16 of the Administrative Procedures Act shall apply mutatis mutandis to the service of documents. <Amended by Act No. 8631, Aug. 3, 2007> |
| (2) | Notwithstanding paragraph (1), a business entity or a business entities' organization that has its domicile, place of business, or office (hereinafter referred to as "domicile, etc.") overseas is required to designate its agent to be served on documents in the Republic of Korea. <Amended by Act No. 8631, Aug. 3, 2007> |
| (3) | Paragraph (1) shall apply where a business entity or a business entities' organization that is required to designate its agent in the Republic of Korea pursuant to paragraph (2) fails to designate one. <Newly Inserted by Act No. 8631, Aug. 3, 2007> |
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 54 (Filing Appeals) |
| (1) | A person who intends to file an appeal against any measure taken by the Fair Trade Commission under this Act shall do so within 30 days from the date of receipt of the written notice of the measure or the date of receipt of the authentic copy of the judgment on his/her objection. <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 6371, Jan. 16, 2001> |
| (2) | The period specified in paragraph (1) is invariable. |
| Article 55 (Exclusive Jurisdiction over Appeals) |
The Seoul High Court that has jurisdiction over the seat of the Fair Trade Commission shall have exclusive jurisdiction over any appeals filed pursuant to Article 54. <Amended by Act No. 5235, Dec. 30, 1996>
| Article 55-2 (Case Handling Procedures) |
The Fair Trade Commission shall determine and publicly notify procedures for handling cases that violate this Act and other necessary matters.
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
CHAPTER X-2 IMPOSITION, COLLECTION, ETC. OF PENALTY SURCHARGES
| Article 55-3 (Imposition of Penalty Surcharges) |
| (1) | The Fair Trade Commission shall take into account the following matters to impose penalty surcharges pursuant to this Act: |
| 1. | The nature and degree of the relevant violation; |
| 2. | The duration and frequency of the relevant violation; |
| 3. | The amount of benefits, etc. acquire by committing the relevant violation. |
| (2) | Where a company, which is a business entity violating this Act, conducts a merger, the Fair Trade Commission may impose a penalty surcharge on a company surviving the merger or established through the merger, deeming that the violation of the first-mentioned company has been committed by the second-mentioned company. |
| (3) | Where a company, which is a business entity violating this Act, is divided or merges with other business entity through division, the Fair Trade Commission may impose and collect a penalty surcharge from any of the following companies, deeming that the violation of the first-mentioned company before the date of such division or merger through division has been committed by any of the following companies: <Newly Inserted by Act No. 11406, Mar. 21, 2012> |
| 2. | A company newly established through the division or merger through division; |
| 3. | Where a part of the divided company is merged with other company and the other company survives, the other company. |
| (4) | Where a company, which is a business entity violating this Act, establishes a new company pursuant to Article 215 of the Debtor Rehabilitation and Bankruptcy Act, the Fair Trade Commission may impose and collect a penalty surcharge on the grounds that the violation has been committed by the existing company or the new company. <Newly Inserted by Act No. 11406, Mar. 21, 2012> |
| (5) | Criteria for imposing the penalty surcharges provided for in paragraph (1) shall be prescribed by Presidential Decree. <Amended by Act No. 5813, Feb. 5, 1999; Act No. 11406, Mar. 21, 2012> |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 55-4 (Extension of Deadline for Paying Penalty Surcharges and Payment in Installments) |
| (1) | If the Fair Trade Commission deems it impracticable for a person on whom a penalty surcharge has been imposed (hereinafter referred to as "person liable to pay the penalty surcharge") to pay the penalty surcharge in lump sum due to any of the following causes because the sum of the penalty surcharges exceeds the amount prescribed by Presidential Decree, the Commission may extend a deadline for paying such penalty surcharge or permit the person to pay such penalty surcharge in installments. In such cases, security may be required, where necessary: |
| 1. | Where the person has sustained a substantial property loss because of a fire, theft, etc.; |
| 2. | Where the person’s business is at considerable risk because of worsening business conditions; |
| 3. | Where paying the penalty surcharge in lump sum is likely to cause substantial financial difficulties; |
| 4. | Where there are other causes equivalent to subparagraphs 1 through 3. |
| (2) | A person liable to pay the penalty surcharge shall file an application with the Fair Trade Commission within 30 days after receipt a notice of payment of penalty surcharge to apply for an extension of the deadline for paying the penalty surcharge or for payment in installments pursuant to paragraph (1). <Amended by Act No. 6651, Jan. 26, 2002> |
| (3) | Where a person liable to pay the penalty surcharge granted an extension of the deadline for paying the penalty surcharge, or permitted to pay such penalty surcharge in installments under paragraph (1), falls under any of the following cases, the Fair Trade Commission may revoke the decision granting an extension of the deadline for paying the penalty surcharge or allowing payment in installments, and collect such penalty surcharge in lump sum: <Amended by Act No. 13071, Jan. 20, 2015> |
| 1. | Where the person fails to pay an installment of the penalty surcharge by the deadline for payment; |
| 2. | Where the person fails to comply with the Fair Trade Commission’s order to change security or to preserve security; |
| 3. | Where it is deemed impossible to collect the full or remaining amount of penalty surcharges on the grounds of forced enforcement, commencement of an auction, declaration of insolvency, dissolution of a corporation, national or local taxes in arrears; |
| 4. | Where it is deemed possible for the person to pay the penalty surcharge in lump sum because any of the causes provided for in paragraph (1) has ceased. |
| (4) | An extension of the deadline for paying a penalty surcharge or payment in installments pursuant to paragraphs (1) through (3) and other necessary matters shall be prescribed by Presidential Decree. <Amended by Act No. 5813, Feb. 5, 1999> |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 55-5 (Liability to Jointly Pay Surcharges) |
| (1) | Where a business entity, which is a company on which a penalty surcharge is imposed, is divided or merges with other company through division (including where a business entity is divided or merges with other company through division on the date on which a penalty surcharge is imposed), the following companies are liable to jointly pay the penalty surcharge: |
| 2. | A company newly established through the division or merger through division; |
| 3. | Where a part of the divided company is merged with other company and the other company survives, the other company. |
| (2) | Where a business entity, which is a company on which a penalty surcharge is imposed, dissolves after division or merger through division (including where a company dissolves on the date on which a penalty surcharge is imposed), the following companies are liable to jointly pay the penalty surcharge: |
| 1. | A company newly established through the division or merger through division; |
| 2. | Where a part of the divided company is merged with other company and the other company survives, the other company. |
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 55-6 (Collection of Penalty Surcharges and Disposition on Penalty Surcharges in Arrears) |
| (1) | Where a person liable to pay the penalty surcharge fails to pay the penalty surcharge by the deadline for payment, the Fair Trade Commission shall collect additional dues from the person, as prescribed by Presidential Decree, taking into account the overdue interest rate charged by banks defined in Article 2 of the Banking Act within 40 percent per annum for the period beginning on the date following the expiration of the deadline for paying the penalty surcharge and ending on the date on which the penalty surcharge is paid. In such cases, the period for collecting the additional dues shall not exceed 60 months. <Amended by Act No. 5813, Feb. 5, 1999; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007; Act No. 10303, May 17, 2010; Act No. 11406, Mar. 21, 2012> |
| (2) | Where a person liable to pay the penalty surcharge fails to pay the penalty surcharge by the deadline for payment, the Fair Trade Commission may demand the payment thereof within a specified period, and may collect the penalty surcharge and additional dues in the same manner as delinquent national taxes are collected, if the person fails to pay such penalty surcharge and additional dues within the specified period. |
| (3) | The Fair Trade Commission may entrust the Commissioner of the National Tax Office with the work of collecting penalty surcharges and additional dues under paragraph (1) and taking dispositions on default under paragraph (2). |
| (4) | The Fair Trade Commission may, where deemed necessary to collect penalty surcharges in arrears, request the Commissioner of the National Tax Office to furnish the information on national taxes imposed on persons who have failed to pay the penalty surcharges. <Newly Inserted by Act No. 6371, Jan. 16, 2001> |
| (5) | Public officials in charge of penalty surcharges may request the heads of registry offices and other relevant administrative agencies to present required documents for inspection or copying, or to deliver their transcripts or abstracts, free of charge, where necessary to collect the penalty surcharges. <Newly Inserted by Act No. 6371, Jan. 16, 2001> |
| (6) | Matters necessary to collect penalty surcharges shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 5235, Dec. 30, 1996]
| Article 55-7 (Additional Payment on Refund of Penalty Surcharges) |
Where the Fair Trade Commission refunds a penalty surcharge based on a ruling on an objection or a judgment of the court or for any other reason, the Commission shall make an additional payment on refund for the period beginning on the date on which the penalty surcharge is paid and ending on the date of refund, as prescribed by Presidential Decree: Provided, That where the imposition of a penalty surcharge is revoked by a judgment of the court and a penalty surcharge is newly imposed based on the grounds for the judgment, an additional payment on refund shall be calculated and made for the amount of the penalty surcharge initially paid, less the penalty surcharge assessed and newly imposed. <Amended by Act No. 14137, Mar. 29, 2016>
[This Article Newly Inserted by Act No. 6371, Jan. 16, 2001]
| Article 55-8 (Disposition on Deficits) |
| (1) | Where any of the following is applicable to a person liable to pay a penalty surcharge, administrative fine, or other charge imposed under this Act (hereinafter referred to as "charge, etc."), the Fair Trade Commission may make a disposition on deficits: |
| 1. | Where the amount appropriated for the amount in arrears after the disposition on default falls short of the amount in arrears; |
| 2. | Where extinctive prescription of the right to collect a charge, etc. is completed; |
| 3. | Where the defaulter’s whereabouts is unknown or it is confirmed that the defaulter has no assets; |
| 4. | Where it is confirmed that there would be no remainder after the estimated value of the assets subject to disposition on default is appropriated for expenses for disposition on default; |
| 5. | Where it is confirmed that there would be no remainder after the estimated value of the assets subject to disposition on default is appropriated to pay national taxes, local taxes, claims, etc. secured by a right to lease on a deposit basis, a pledge right, or mortgage, which have preference over a charge, etc.; |
| 6. | Where it is unlikely to collect a charge, etc. for any reason prescribed by Presidential Decree. |
| (2) | To make a disposition on deficits pursuant to paragraph (1), a relevant agency, such as a local administrative agency, shall be inquired of the whereabouts of the defaulter or whether the defaulter has any asset, and the result shall be confirmed. |
| (3) | Where a disposition on deficits is made by reason of paragraph (1) 4 or 5, the disposition on deficits shall be suspended and the seizure of the assets shall be revoked. |
| (4) | Upon discovering a seizable asset after having made a disposition on deficits pursuant to paragraph (1), the Fair Trade Commission shall promptly revoke the disposition on deficits and make a disposition on default: Provided, That the foregoing shall not apply to paragraph (1) 2. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
| Article 56 (Liability for Compensation) |
| (1) | Where a person sustains damage because a business entity or business entities' organization violates any provision of this Act, the business entity or business entities' organization is liable for compensating for the damage: Provided, That the foregoing shall not apply where the business entity or the business entities' organization verifies that it violates any provision of this Act neither intentionally nor negligently. <Amended by Act No. 7315, Dec. 31, 2004> |
| (2) | Deleted. <by Act No. 7315, Dec. 31, 2004> |
| Article 56-2 (Transmission of Records) |
Where a lawsuit for liability for damage is instituted under Article 56, the court may request the Fair Trade Commission to transmit the records on the particular case (including records on the examination of relevant persons, references or expert witnesses, stenographic records and all judicial evidence).
[This Article Newly Inserted by Act No. 5813, Feb. 5, 1999]
| Article 57 (Recognition of Damages) |
Where it is recognized that damage is caused by a violation of any provision of this Act, but it is extremely impracticable to verify the fact necessary to substantiate the amount of such damage in light of the character of such fact, the court may recognize a reasonable amount of damage based on the gist of entire arguments and the results of investigating evidence.
[This Article Wholly Amended by Act No. 7315, Dec. 31, 2004]
| Article 58 (Lawful Acts under Acts and Subordinate Statutes) |
The provisions of this Act shall not apply to any lawful acts done by business entities or business entities' organizations in accordance with other Acts and orders issued under such Acts.
| Article 59 (Exercising Intangible Property Rights) |
| Article 60 (Acts of Specified Associations) |
This Act shall not apply to any acts done by an association established upon satisfying the following requirements (including a federation of associations): Provided, That the foregoing shall not apply to unfair trade practices or price increases by unfairly restricting competition: <Amended by Act No. 5813, Feb. 5, 1999>
| 1. | The association shall aim at mutual aid among small-sized business entities or consumers; |
| 2. | The association shall be established voluntarily, and its members may join and withdraw voluntarily; |
| 3. | Each member shall have an equal voting right; |
| 4. | Where profits are distributed to members, the limit thereof shall be determined by the articles of association. |
| Article 61 Deleted. <by Act No. 5235, Dec. 30, 1996> |
CHAPTER XIII SUPPLEMENTARY PROVISIONS
| Article 62 (Duty to Maintain Confidentiality) |
Any commissioner or public official who performs or has performed duties prescribed in this Act or any employee of the Council who mediates or has mediated disputes shall neither divulge any confidential information of a business entity or a business entities' organization that he/she has learned in the course of performing such duties nor use it for any purpose other than for enforcing this Act. <Amended by Act No. 8631, Aug. 3, 2007>
| Article 63 (Consultation on Enactment of Acts and Subordinate Statutes Containing Competition-Restricting Provisions) |
| (1) | The head of a relevant administrative agency shall seek prior consultation with the Fair Trade Commission in order to enact or amend a statute that contains competition-restricting provisions, such as determining prices or terms and conditions of transactions, imposing restrictions on business entities’ entry into markets or business activities, illegal cartel conduct, and prohibited practices of business entities' organizations; to grant approval or take other measures containing competition-restricting provisions against a business entity or a business entities' organization. |
| (2) | The head of a relevant administrative agency shall give prior notice to the Fair Trade Commission in order to enact or amend any rules or regulations containing competition-restricting provisions. |
| (3) | Upon granting approval or taking other measures containing competition-restricting provisions under paragraph (1), the head of a relevant administrative agency shall give notice to the Fair Trade Commission about the details of such approval or other measures. |
| (4) | Upon receipt of notice given under paragraph (2), the Fair Trade Commission may present its opinion to the head of a relevant administrative agency as to the rectification of competition-restricting provisions, where it is recognized that rules or regulations to be enacted or amended contain competition-restricting provisions. The foregoing shall also apply to Acts and subordinate statutes enacted or amended without consultation required under paragraph (1), rules or regulations enacted or amended without notice, and approval or other measures granted or taken without notice. |
[This Article Wholly Amended by Act No. 5235, Dec. 30, 1996]
| Article 64 (Cooperation from Heads of Relevant Agencies, etc.) |
| (1) | The Fair Trade Commission may seek opinions from the heads of relevant administrative agencies, other institution or associations, if deemed necessary to enforce this Act. <Amended by Act No. 5235, Dec. 30, 1996> |
| (2) | The Fair Trade Commission may entrust the heads of relevant administrative agencies, other institution or associations with any necessary investigation, or request necessary materials, if deemed necessary to enforce this Act. <Amended by Act No. 5235, Dec. 30, 1996> |
| (3) | The Fair Trade Commission may request necessary cooperation from the heads of relevant administrative agencies, other institution or associations, if deemed necessary to ensure the performance of a corrective measure ordered under this Act. <Amended by Act No. 5235, Dec. 30, 1996> |
| Article 64-2 (Payment of Rewards) |
| (1) | The Fair Trade Commission may pay a reward, within budgetary limits, to any person who reports or provides information about violations of this Act and submits evidentiary materials to substantiate such violations. |
| (2) | Violations of this Act that are subject to rewards under paragraph (1), the scope of persons eligible for receiving rewards, standards and procedures for paying such rewards, and other necessary matters, shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 7315, Dec. 31, 2004]
| Article 64-3 (Restitution, etc. of Rewards) |
| (1) | Where any of the following facts is found after the Fair Trade Commission has paid a reward pursuant to Article 64-2 (1), the Commission shall give notice of an amount to be restituted to a recipient of the reward, and such recipient shall pay the amount within 30 days after receipt of the notice: |
| 1. | Where the recipient has received the reward by such improper means as collecting evidence by unlawful or unfair means, filing a false report or statement, or forging evidence; |
| 2. | Where the recipient has received a reward, etc. pursuant to other Act for an identical cause; |
| 3. | Where a reward has been erroneously paid by mistake or for any other reason. |
| (2) | Where a person required to restitute a reward pursuant to paragraph (1) fails to do so by the deadline for payment, the Fair Trade Commission may collect the amount in the same manner as delinquent national taxes are collected. |
[This Article Newly Inserted by Act No. 13071, Jan. 20, 2015]
| Article 65 (Delegation and Entrustment of Authority) |
The Fair Trade Commission may delegate part of its authority prescribed in this Act to the head of an agency under its control, the Special Metropolitan City Mayor, the Metropolitan City Mayors, or Do Governors, or entrust the head of other administrative agency with part of its authority, as prescribed by Presidential Decree. <Amended by Act No. 5235, Dec. 30, 1996>
| Article 65-2 (Legal Fiction of Public Official in Application of Penalty Provisions) |
| (1) | A commissioner of the Fair Trade Commission that is not a public official shall be deemed to be a public official in applying the penalty provisions of the Criminal Act or other Acts. |
| (2) | A person who mediates or has mediated disputes pursuant to Articles 48-3 through 48-9 shall be deemed a public official in applying the penalty provisions under Articles 129 through 132 of the Criminal Act. |
[This Article Newly Inserted by Act No. 8631, Aug. 3, 2007]
CHAPTER XIV PENALTY PROVISIONS
| Article 66 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment for not more than 3 years or by a fine not exceeding 200 million won: <Amended by Act No. 4513, Dec. 8, 1992; Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 5813, Feb. 5, 1999; Act No. 6043, Dec. 28, 1999; Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007; Act No. 9554, Mar. 25, 2009; Act No. 11406, Mar. 21, 2012; Act No. 12095, Aug. 13, 2013; Act No. 12334, Jan. 24, 2014; Act No. 12708, May 28, 2014> |
| 1. | Any person who engages in abusive practices in violation of Article 3-2; |
| 2. | Any person who conducts a business combines in violation of the main sentence of Article 7 (1); |
| 3. | Any person who violates any provision of Article 8-2 (2) through (5); |
| 4. | Any person who establishes a holding company or converts a company into a holding company in violation of Article 8-3; |
| 5. | Any person who acquires or holds shares in violation of Article 9 or 9-2; |
| 6. | Any person who provides a debt guarantee in violation of Article 10-2 (1); |
| 7. | Any person who exercises his/her voting right in violation of Article 11 or 18; |
| 8. | Any person who engages in unlawful practices in violation of Article 15; |
| 9. | Any person who engages in illegal cartel conduct or requires a business entity to engage in illegal cartel conduct in violation of Article 19 (1); |
| 9-2. | Any person who violates Article 23 (1) 7, or 23-2 (1) or (4); |
| 9-3. | Any person who violates Article 23-3; |
| 10. | Any business entities' organization that does prohibited acts in violation of Article 26 (1) 1; |
| 11. | Any person who refuses, interferes with, or evades an investigation conducted under Article 50 (2) through verbal abuse, assault, or intentionally blocking or delaying access to the site. |
| (2) | The punishment of imprisonment and fines referred to in paragraph (1) may be imposed concurrently. |
| Article 67 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment for not more than 2 years or by a fine not exceeding 150 million won: <Amended by Act No. 4513, Dec. 8, 1992; Act No. 4790, Dec. 22, 1994; Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 5813, Feb. 5, 1999; Act No. 6651, Jan. 26, 2002; Act No. 8631, Aug. 3, 2007; Act No. 9554, Mar. 25, 2009; Act No. 12095, Aug. 13, 2013; Act No. 14137, Mar. 29, 2016>
| 1. | Deleted; <by Act No. 5235, Dec. 30, 1996> |
| 2. | Any person who engages in unfair trade practices in violation of Article 23 (1) (excluding subparagraph 7); |
| 3. | Any person who violates any provision of Article 26 (1) 2 through 5; |
| 4. | Any person who engages in the practice of resale price maintenance in violation of Article 29 (1); |
| 5. | Deleted; <by Act No. 14137, Mar. 29, 2016> |
| 6. | Any person who fails to comply with a corrective measure or prohibition order taken or issued under Article 5, 16 (1), 21, 24, 27, 30, or 31; |
| 7. | Any person who fails to undergo an audit by a certified public accountant in violation of Article 14 (5). |
| Article 68 (Penalty Provisions) |
Any of the following persons shall be punished by a fine not exceeding 100 million won: <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 8382, Apr. 13, 2007; Act No. 8631, Aug. 3, 2007>
| 1. | Any person who fails to file a report on the establishment of or conversion into a holding company or files a false report in violation of Article 8; |
| 2. | Any person who fails to file a report on the business activities of a holding company, etc. or files a false report in violation of Article 8-2 (7); |
| 3. | Any person who fails to file a report on the shareholding status or the status of debt guarantees or files a false report in violation of Article 13 (1) and (2); |
| 4. | Any person who refuses to submit materials requested under Article 14 (4) without just cause or submits false materials; |
| 5. | Any person who gives a false appraisal in violation of Article 50 (1) 2; |
| 6. | Deleted; <by Act No. 7315, Dec. 31, 2004> |
| 7. | Deleted; <by Act No. 4790, Dec. 22, 1994> |
| 8. | Deleted. <by Act No. 5813, Feb. 5, 1999> |
[This Article Wholly Amended by Act No. 4513, Dec. 8, 1992]
| Article 69 (Penalty Provisions) |
| (1) | A person who requests financial transaction information from the head of a specific branch of a financial institution, abusing his/her authority, despite his/her failure to satisfy the requirements of Article 50 (5), or a person who violates paragraph (9) of the same Article shall be punished by imprisonment for not more than 5 years, or by a fine not exceeding 30 million won. <Newly Inserted by Act No. 7315, Dec. 31, 2004> |
| (2) | A person who violates Article 62 shall be punished by imprisonment for not more than 2 years or by a fine not exceeding 2 million won. <Amended by Act No. 5235, Dec. 30, 1996> |
| Article 69-2 (Administrative Fines) |
| (1) | A business entity or business entities' organization shall be punished by an administrative fine not exceeding 100 million won in any case falling under subparagraphs 1 through 6 and 8; and by an administrative fine not exceeding 200 million won in cases falling under subparagraph 7. An executive, employee, or other interested party of a company or business entities' organization shall be punished by an administrative fine not exceeding 10 million won in any case falling under subparagraphs 1 through 6 and 8; and by an administrative fine not exceeding 50 million won in cases falling under subparagraph 7: <Amended by Act No. 5235, Dec. 30, 1996; Act No. 5528, Feb. 24, 1998; Act No. 5813, Feb. 5, 1999; Act No. 6043, Dec. 28, 1999; Act No. 6371, Jan. 16, 2001; Act No. 6651, Jan. 26, 2002; Act No. 7315, Dec. 31, 2004; Act No. 9554, Mar. 25, 2009; Act No. 11406, Mar. 21, 2012> |
| 1. | In making a disclosure pursuant to Articles 11-2 through 11-4, a person who fails to undergo a resolution by the board of directors or fails to make a disclosure, or a person who omits material facts or makes a disclosure containing false information; |
| 2. | A person who fails to file a report on a business combination under Article 12 (1) or (6), a person who files a false report, or a person who violates paragraph (8) of said Article; |
| 3. | A person who fails to submit materials requested under Article 14-2 (2) without just cause or submits false materials; |
| 4. | Deleted; <by Act No. 9554, Mar. 25, 2009> |
| 5. | A person who fails to appear without just cause in violation of Article 50 (1) 1; |
| 6. | A person who fails to file a report or present necessary materials or things as prescribed in Article 50 (1) 3 or (3), who files a false report, or who presents false materials or things; |
| 7. | A person who refuses, interferes with, or evades an investigation under Article 50 (2) by concealing, destroying, refusing to access to, forging or altering data; |
| 8. | A person who refuses to submit financial transaction information requested under Article 50 (5). |
| (2) | A person who fails to comply with an order to maintain order in violation of Article 43-2 shall be punished by an administrative fine not exceeding 1 million won. <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| (3) | Administrative fines referred to in paragraph (1) or (2) shall be imposed and collected by the Fair Trade Commission, as prescribed by Presidential Decree. <Amended by Act No. 5335, Dec. 30, 1996> |
| (4) | through (6) Deleted. <by Act No. 9554, Mar. 25, 2009> |
[This Article Newly Inserted by Act No. 4513, Dec. 8, 1992]
| Article 70 (Joint Penalty Provisions) |
If the representative of a corporation (including an unincorporated organization; hereafter the same shall apply in this Article) or an agent or employee of, or other persons employed by, the corporation or an individual has committed any violation provided for in Articles 66 through 68 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to the punishing the violator accordingly, be subject to a fine prescribed in the relevant Article: Provided, That the foregoing shall not apply where such corporation or individual has not been negligent in giving due care and supervision to the business affairs to prevent such violation.
[This Article Wholly Amended by Act No. 9554, Mar. 25, 2009]
| Article 71 (Criminal Charge) |
| (1) | Any violation prescribed in Articles 66 and 67 may be prosecuted only if a criminal charge is filed by the Fair Trade Commission. <Amended by Act No. 5235, Dec. 30, 1996> |
| (2) | The Fair Trade Commission shall file a criminal charge with the Prosecutor General, where the Commission deems that any violation prescribed in Articles 66 and 67 may substantially hinder competition, because the degree of such violation is objectively obvious and serious. <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| (3) | The Prosecutor General may notify the Fair Trade Commission of the existence of facts satisfying the requirements for filing criminal charges provided for in paragraph (2), and may request the Fair Trade Commission to file a criminal charge. <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| (4) | Even if the Fair Trade Commission concludes that a case does not satisfy the requirements for filing criminal charges provided for in paragraph (2), the Chairperson of the Board of Audit and Inspection of Korea, the Administrator of the Public Procurement Service, or the SME Minister of the Small and Medium Business Administration (SMBA) may request the Fair Trade Commission to file a criminal charge for other reasons, such as far-reaching social effects, influence on the national finance, and the degree of damage to small and medium enterprises. <Newly Inserted by Act No. 11937, Jul. 16, 2013> |
| (5) | Upon receipt of a request for filing a criminal charge under paragraph (3) or (4), the chairperson of the Fair Trade Commission shall file a criminal charge with the Prosecutor General. <Newly Inserted by Act No. 11937, Jul. 16, 2013> |
| (6) | The Fair Trade Commission may not withdraw a criminal charge after prosecution has commenced. <Newly Inserted by Act No. 5235, Dec. 30, 1996; by Act No. 11937, Jul. 16, 2013> |
[This Article Wholly Amended by Act No. 4513, Dec. 8, 1992]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1990.
Article 2 (General Transitional Measures)
| (1) | Any authorization, approval, recognition, designation, corrective measures, etc. granted or taken by the Minister of Economic Planning Board pursuant to the former provisions as at the time this Act enters into force, shall be deemed authorization, approval, recognition, designation, corrective measures, etc. granted or taken by the Fair Trade Commission under this Act. |
| (2) | Any report, application, or notice filed with or given to the Minister of Economic Planning Board pursuant to the former provisions as at the time this Act enters into force, shall be deemed a report, an application, or notice filed with or given to the Fair Trade Commission under this Act. |
| (3) | Any public notice given by the Minister of Economic Planning Board pursuant to the former provisions as at the time this Act enters into force, shall be deemed a public notice given by the Fair Trade Commission under this Act. |
Article 3 (Transitional Measures concerning Prohibition on Cross Shareholding)
If a member company of a business group designated as a conglomerate, which is engaged in financial business or insurance business as at the time this Act enters into force, violates Article 9 (1), said Article shall not apply to the member company for one year from the date this Act enters into force.
Article 4 (Transitional Measures concerning Total Amount of Shareholding)
| (1) | If a member company of a business group designated as a conglomerate as at the time this Act enters into force or within two years from the date this Act enters into force, and which received a notification given under Article 14 (1) at the time of designation, has a shareholding in excess of the shareholding limit at the time of the notification, the total shareholding on the date of such notification (hereinafter referred to as "special maximum amount") shall be deemed the maximum amount of shareholding for two years from the date this Act enters into force for the purposes of Article 10 (1): Provided, That the same shall apply where the maximum amount of shareholding exceeds the special maximum amount due to an increase of the net assets value, this provision shall not apply; and if any period shorter than the period prescribed in Article 14 (3) 2 shall be deemed one year. |
| (2) | The Fair Trade Commission may require a company for which the special maximum amount is recognized, to prepare and submit an annual plan to settle the excess of the maximum shareholding amount, where necessary. |
| (3) | Notwithstanding Article 10 (1), if a member company of a conglomerate holds the shares of a company, not less than 30 percent of the total outstanding shares of which is held by the Government, a local government, or a government-invested institution under the Framework Act on the Management of Government-Invested Institutions as of April 1, 1987 with the approval of the Fair Trade Commission, the member company may hold such shares after the expiration of the period specified in paragraph (1). In such cases, the Fair Trade Commission may separately determine the period for which the company may hold such shares. |
| (4) | Notwithstanding Article 10 (1), if a member company of a conglomerate holds the shares issued by a foreign-invested enterprise under the Foreign Capital Inducement Act as of April 1, 1987 with the approval of the Fair Trade Commission, the member company may hold such shares for up to three years after the expiration of the period specified in paragraph (1). |
Article 5 Omitted.
ADDENDA <Act No. 4501, Nov. 25, 1992>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 4513, Dec. 8, 1992>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1993.
Article 2 (Transitional Measures concerning Total Amount of Shareholding)
For the purposes of the proviso to Article 10 (1), the amended provisions of subparagraph 5 of said paragraph shall apply exclusively to shares to be acquired or held after this Act enters into force.
Article 3 (Transitional Measures concerning Debt Guarantees)
| (1) | If a member company of a business group is designated as a conglomerate subject to limitations on debt guarantees as at the time this Act enters into force, or within three years after this Act enters into force, and which has received the notification as prescribed in Article 14 (1), has guaranteed any debt in excess of the maximum debt guarantee amount at the time of the notification thereof, the total debt guarantee on the date of the notification (hereinafter referred to as "special maximum debt guarantee amount") shall, for the purposes of Article 10-2 (1), be deemed the maximum debt guarantee amount for three years after this Act enters into force: Provided, That this shall not apply where the maximum amount of debt guarantee exceeds the special maximum amount of debt guarantee due to the increase of the equity capital. |
| (2) | The Fair Trade Commission may, if necessary, have a company having the special maximum debt guarantee amount recognized under paragraph (1), prepare and submit an annual plan to solve the excess maximum debt guarantee amount through a consultation with domestic financial institutions. |
ADDENDA <Act No. 4790, Dec. 22, 1994>
| (1) | (Enforcement Date) This Act shall enter into force on April 1, 1995. |
| (2) | (Transitional Measures concerning Total Amount of Shareholding) Where a member company of a business group designated as a conglomerate as at the time this Act enters into force, or within three years after this Act enters into force, and which has received the notification as prescribed in Article 14 (1) at the time of such designation, has made an investment in excess of the shareholding limit at the time it receives the notification, the total shareholding on the date it receives the notification (hereinafter referred to as "special ceiling") shall be deemed the shareholding limit for three years after this Act enters into force: Provided, That if the shareholding limit exceeds the special ceiling due to an increase in the net assets, this shall not apply, and if the period is shorter than that prescribed in the main sentence of Article 14 (3) 2, it shall be one year. |
| (3) | (Applicability) The amended provisions of Article 10 (2) shall apply exclusively to shares acquired or held after this Act enters into force. |
ADDENDA <Act No. 4831, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 5235, Dec. 30, 1996>
| (1) | (Enforcement Date) This Act shall enter into force on April 1, 1997. |
| (2) | (Transitional Measures concerning Total Amount of Shareholding) For the purposes of amended Article 10, where the book value of shares acquired before this Act enters into force is below the purchase price of the shares, the book value of such shares shall be deemed the purchase price of such shares. |
| (3) | (Transitional Measures concerning Debt Guarantees) Where a member company of a conglomerate subject to limitations on debt guarantees as at the time this Act enters into force has provided a debt guarantee in total for its domestic affiliates as at the time this Act enters into force in excess of the maximum debt guarantee prescribed by amended Article 10-2 (1), the aggregate debt guarantee shall be deemed the maximum debt guarantee for that company until March 31, 1998: Provided, That the foregoing shall not apply where the aggregate debt guarantee has exceeded the maximum debt guarantee for the company due to an increase in its own equity. |
| (4) | (Transitional Measures concerning Penalty Provisions) The application of the penalty provisions to any act committed before this Act enters into force shall be governed by the former provisions. |
ADDENDA <Act No. 5403, Aug. 30, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5491, Dec. 31, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1998.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 5498, Jan. 8, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Act No. 5503, Jan. 13, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 5528, Feb. 24, 1998>
| (1) | (Enforcement Date) This Act shall enter into force on April 1, 1998: Provided, That the amended provisions of Article 10 shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures on Debt Guarantees) If the total debt guarantees for domestic affiliates which a member company of a conglomerate designated in the year 1998 as a conglomerate subject to limitations on debt guarantees, which was designated in the year 1997, guarantees for domestic affiliates at the time of its designation, exceed the limitations on debt guarantees pursuant to the former provisions of Article 10-2 (1), the former provisions shall apply: Provided, That the period exceptionally recognized pursuant to the decrease of equity capital referred to in the former provisions of Article 10-2 (4) shall not expire on or before March 31, 2000. |
ADDENDA <Act No. 5529, Feb. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 5559, Sep. 16, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 5813, Feb. 5, 1999>
| (1) | (Enforcement Date) This Act shall enter into force on April 1, 1999: Provided, That amended Article 50 (5), (6), (7) and (8), subparagraph 6 of Article 68, Articles 69 (1) and 69-2 (1) 7 shall enter into force on the date of its promulgation. |
| (2) | (Term of Validity) Amended Article 50 (5), (6), (7) and (8), subparagraph 6 of Article 68, Articles 69 (1) and 69-2 (1) 7 shall remain in force for five years from the date of promulgation of this Act. <Amended by Act No. 6371, Jan. 16, 2001> |
| (3) | (Transitional Measures following Expiration of Term of Validity) The application of the penalty provisions or administrative fines to any act committed before the term of validity specified in paragraph (2) expires shall be governed by the former provisions. |
| (4) | (Transitional Measures concerning Penalty Provisions) The application of the penalty provisions to any act committed before this Act enters into force shall be governed by the former provisions. |
ADDENDA <Act No. 5814, Feb. 5, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1999.
Articles 2 (Transitional Measures concerning Corrective Measures, Surcharges, and Penalty Provisions)
The application of the corrective measures, surcharges, and penalty provisions to any act committed in violation of Articles 23 (1) 6 and 26 (1) 5 of the former Monopoly Regulation and Fair Trade Act before this Act enters into force shall be governed by the former provisions. Article 3 (Transitional Measures concerning Fair Competition Covenant)
The fair competition covenant on indication and advertisement examined by the Fair Trade Commission pursuant to Article 23 (4) and (5) of the former Monopoly Regulation and Fair Trade Act as at the time this Act enters into force shall be deemed the self-governing code on indication and advertisement examined pursuant to Article 14. Articles 4 and 5 Omitted.
ADDENDA <Act No. 5825, Feb. 8, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 6043, Dec. 28, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2000: Provided, That the
amended provisions of Articles 10 and 14 (3) 2 shall enter into force on April 1, 2001.
Article 2 (Special Case for Application concerning Investment for Corporate Restructuring)
Of the amended provisions of Article 10 (1) 4, where acquiring or holding shares for the purpose of corporate restructuring, with regard to the shares that may be acquired or held in excess of the amount of investment limit, the same Article, same paragraph, and same subparagraph shall also be applicable to the shares that were acquired or held during a period from January 1, 1998 to March 31, 2002. In such cases, in calculating the period according to the same subparagraph, what have been acquired or held during the period from January 1, 1998 to March 31, 2001 shall be deemed to have been acquired or held on April 1, 2001. <Amended by Act No. 6651, Jan. 26, 2002>
Article 3 (Transitional Measures concerning Total Amount of Shareholding)
For the purposes of the amended provisions of Article 10 (1), where a member company of a business group designated as a conglomerate makes investment in excess of the shareholding limit as at the time this Act enters into force, the total amount of shareholding made by such company as of the date this Act enters into force shall be deemed the shareholding limit for one year from the date this Act enters into force: Provided, That the foregoing shall not apply where the shareholding limit exceeds an amount deemed the total amount of shareholding following an increase in the net asset value.
Article 4 (Transitional Measures concerning Investment in Infrastructure)
Any person who has acquired or held, or received recognition of period extension with respect to, shares of a company incorporated to carry on the first-class facility business as prescribed in subparagraph 2 of Article 2 of the previous Promotion of Private Capital into Social Overhead Capital Investment Act (referring to the Act before it was amended by Act No. 5377) in accordance with Article 10 (2) of the previous Monopoly Regulation and Fair Trade Act (referring to the Act before it was amended by Act No. 5528) before this Act enters into force shall be deemed to have acquired or held such shares or have received recognition of period extension under the amended provisions of Article 10 (1) 3 for a period recognized by the Fair Trade Commission at the time of recognition. Article 5 (Transitional Measures concerning Investment Made to Attract Foreign Investment)
Where any shares acquired or held to attract foreign investment before this Act enters into force fall under the amended provisions of Article 10 (1) 4, such shares shall be deemed to have been acquired or held on April 1, 2001.
ADDENDA <Act No. 6371, Jan. 16, 2001>
| (1) | (Enforcement Date) This Act shall enter into force on April 1, 2001: Provided, That the amendments to Article 2 of Addenda of the Monopoly Regulation and Fair Trade Act (Act No. 5813) shall enter into force on the date of its promulgation. |
| (2) | (Applicability to Additional Payment for Refund of Surcharge) |
The amendments to Article 55-6 shall be applicable from the portion of incurrence of the causes for refund for the first time after this Act enters into force.
| (3) | (Transitional Measures on Application of Penalty Provisions) In apply- |
ing the penalty provisions against the activities committed before this Act enters into force, the former provisions shall govern.
ADDENDA <Act No. 6651, Jan. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2002: Provided, That the amended provisions of Article 11, and of Article 2 of the Addenda of the amended Monopoly Regulation and Fair Trade Act (Act No. 6043) shall enter into force on the date of its promulgation. Article 2 (Term of Validity)
Matters related to corporate restructuring in Article 10 (1) 4 shall remain valid until March 31, 2003.
Article 3 (Retroactive Application in Relation to Limitation on Total Amount of Shareholding)
| (1) | The amended provisions of Article 10 shall also be applicable to the shares acquired or held as at the time this Act enters into force. In such cases, the shares acquired or held under the amended provisions of Article 10 (6) 2 shall be limited to those acquired or held after January 1, 1998. |
| (2) | For the purposes of paragraph (1), where the shares acquired or held as at the time this Act enters into force in order to induce foreign investments (excluding the shares falling under Article 5 of the Addenda of the amended Act of the Monopoly Regulation and Fair Trade Act (Act No. 6043)) fall under the amended provisions of Article 10 (1) 3, and were acquired or held before March 31, 2001, they shall be deemed to have been acquired or held on April 1, 2001. |
Article 4 (Retroactive Application to Enterprises Exceeding Shareholding Limit)
The amended provisions of Article 17-2 and subparagraph 6 of Article 67 shall apply to cases where the affiliate of any business group that is designated as a conglomerate as at the time this Act enters into force acquires and holds shares of other domestic company that holds such shares in excess of the shareholding limit as of April 1, 2001 (in the case of the affiliate of any business group that is designated as a conglomerate in 2001, referring to the date on which the business group is designated as a conglomerate; hereafter the same shall apply in this Article) and continues to hold such shares after the lapse of one year from April 1, 2001 and violates the proviso to Article 10 (1) by continuously holding such shares even after the lapse of the deadline prior to which the exception of restrictions on the total investment amount is recognized pursuant to the main sentence of the same Article and the same paragraph.
[This Article wholly Amended by Act No. 7315, Dec. 31, 2004]
Article 5 (Transitional Measures for Designation, etc. of Business Group subject to Limitations on Cross Shareholding)
A business group designated as a conglomerate or a conglomerate subject to limitations on debt guarantees under the former provisions of Article 14 (1) as at the time this Act enters into force, shall be deemed to have been designated as a business group subject to limitations on cross shareholding, etc. under the amended provisions of Article 14 (1).
Article 6 (Transitional Measures for Application of Penalty Provisions)
An application of penalty provisions to the acts committed before this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 6705, Aug. 26, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 7289, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 7315, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 2005: Provided, That amended Articles 50 (5) through (9), 69 (1) and 69-2 (1) 8 shall enter into force on the date of promulgation of this Act.
Article 2 Deleted. <by Act No. 8382, Apr. 13, 2007>
Article 3 (Applicability, etc. to Reporting on Business Combination)
| (1) | The business combination on which the obligation to report accrues pursuant to the former provisions as at the time this Act enters into force shall be governed by the former provisions, notwithstanding amended Article 12 (1), (2) and (5) through (7). |
| (2) | Amended Article 12 (1) 2 shall also apply to the business combination on which the obligation to report accrues pursuant to former Article 12 (1) 1 as at the time this Act enters into force even if the business combination falls under amended Article 12 (1) 2 after this Act enters into force. |
| (3) | Where the business combination on which no obligation to report accrues, the business combination falls under amended Article 12 (1) 1 and not less than one company are large companies from among companies participating in the business combination as at the time this Act enters into force, amended Article 12 (2), (5) and (7) shall apply to such case and a report on the business combination shall be filed within 30 days from the date of such business combination, notwithstanding amended paragraph (6) of the same Article. |
| (4) | Amended Article 12 (9) shall begin to apply from the first business combination to be applied for examination with the Fair Trade Commission after this Act enters into force. |
Article 4 (Transitional Measures concerning Restrictions on Holding Shares of Domestic Companies, other than Subsidiaries of General Holding Companies)
Where a holding company, which has filed a report with the Fair Trade Commission as at the time this Act enters into force, holds the shares of a domestic company, other than its subsidiaries in excess of 5 percent of the total number of shares issued by the domestic company, the shares of that domestic company shall be brought into conformity with amended Article 8-2 (2) 3 within two years from the date this Act enters into force.
Article 5 (Transitional Measures concerning Restrictions on Shareholding Ratio on Business-Related Second-Tier Subsidiaries of Subsidiaries of General Holding Companies)
Where a subsidiary of any general holding company, which has filed a report with the Fair Trade Commission as at the time this Act enters into force, holds the shares of its business-related second-tier subsidiary, the shares of such business-related second-tier subsidiary shall be brought into conformity with amended Article 8-2 (3) 1 within two years from the date this Act enters into force.
Article 6 (Transitional Measures concerning Prohibition on Investments Made by Subsidiaries of General Holding Companies in other Subsidiaries)
Where any subsidiary of a general holding company, which has filed a report with the Fair Trade Commission as at the time this Act enters into force, holds the shares of another subsidiary in control of the general holding company, the shares of such subsidiary shall be brought into conformity with amended Article 8-2 (3) 2 within two years from the date this Act enters into force.
Article 7 (Transitional Measures concerning Total Amount of Shareholding)
| (1) | Shares acquired or held, pursuant to the former Article 10 (1) 3, by any member company of a business group designated as a business group subject to shareholding limits as at the time this Act enters into force shall be governed by the former provisions, although such shares do not meet the requirements provided for in amended Article 10 (1) 3. |
| (2) | Shares acquired or held, pursuant to the former Article 10 (1) 4, by any member company of a business group designated as a business group subject to shareholding limits as at the time this Act enters into force shall be governed by amended Article 10 (1) 4. |
Article 8 (Transitional Measures concerning Penalty Surcharges Imposed on Unfair Collaborative Acts)
The imposition of a penalty surcharge on an act which was committed before this Act enters into force and terminated on or before the expiration of the three-month period after the partially amended Monopoly Regulation and Fair Trade Act (Act No. 8631) is promulgated shall be governed by the former provisions. <Amended by Act No. 8631, Aug. 3, 2007> Article 9 (Special Cases concerning Restrictions on Voting Rights Held by Finance Companies or Insurance Companies)
The number of shares on which the voting rights can be exercised from among the shares of the domestic affiliates of a company, which are acquired or held, pursuant to the proviso to Article 11 and former subparagraph 3 of Article 11, by any member company of a business group subject to limitations on cross shareholding and is engaged in financial business or insurance business, plus the number of shares on which persons can exercise the voting right, with the exception of persons prescribed by Presidential Decree, from among persons who are specially related to the domestic affiliates, notwithstanding amended subparagraph 3 of Article 11, shall not exceed 30 percent of the total number of shares issued by the domestic affiliates by March 31, 2006; 25 percent from April 1, 2006 to March 31, 2007; 20 percent from April 1, 2007 to March 31, 2008; and 15 percent from April 1, 2008, respectively.
Article 10 Omitted.
ADDENDA <Act No. 7386, Jan. 27, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 7428, Mar. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 7492, Mar. 31, 2005>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 8382, Apr. 13, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 8-2, 10 (1), (2) and (8), 17 (4), 50 (5) and 68, Article 2 of the Addenda, and Article 2 of the Addenda of the amended Monopoly Regulation and Fair Trade Act (Act No. 7315) shall enter into force on the date of its promulgation. Article 2 (Term of Validity)
The amended provisions of Article 50 (5) shall remain valid until December 31, 2010.
Article 3 (Special Cases concerning Exclusion from Designation of Business Group subject to Limitations on Total Amount of Shareholding)
For a business group to which domestic companies whose total sum of assets calculated in accordance with the amended provisions of Article 10 (2) is less than 10 trillion won belongs as of the designation date of the year 2007, from among business groups designated as a business group subject to shareholding limits in accordance with Article 14 (1) as at the time this Act enters into force, shall be deemed to have been exempted from the designation of a business group subject to shareholding limits on the promulgation date of this Act.
Article 4 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
The act performed before this Act enters into force shall be governed by the previous penalty provisions and provisions on administrative fines.
ADDENDA <Act No. 8387, Apr. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8572, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8631, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 50 (5) and Article 8 of Addenda of the amended Monopoly Regulation and Fair Trade Act (Act No. 7315) shall enter into force on the date of its promulgation, and the amended provisions of Articles 48-3 through 48-9 shall enter into force six months after the date of its promulgation. Article 2 (Term of Validity)
The amended provisions of Article 50 (5) shall remain valid until December 31, 2010.
Article 3 (Applicability to Reporting on Business Combination)
The amended provisions of Articles 7 (4) 1 and 12 (1) 2 and 5 shall apply beginning with the case for which the date of report of business combination from which a reckoning is made for the first time after this Act enters into force.
Article 4 (Transitional Measures concerning Business Combination)
The former provisions shall govern the business combination for which the date of report of business combination from which a reckoning is made has arrived, notwithstanding the amended provisions of Articles 7 (4) 1 and 12 (1) 2 and 5.
Article 5 (Transitional Measures concerning Presumption of Unjust Collaborative Acts)
The former provisions shall govern the presumption of unjust collaborative act for an act falling under any subparagraph of former Article 19 (1) which was completed before this Act enters into force, notwithstanding the amended provisions of Article 19 (5).
Article 6 (Transitional Measures concerning Penalty Provisions and Administrative Fines)
The application of penalty provisions and administrative fines to an act before this Act enters into force shall be governed by the former provisions.
Article 7 Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one and a half year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8666, Oct. 17, 2007>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Applicability) The amended provisions of Article 10 (1) 7 shall apply with respect to the acquisition of shares of a company established on or after this Act enters into force, and the amended provisions of subparagraph 8 of the same paragraph shall apply with respect to the acquisition of shares of a company relocated to an area, other than the Seoul Metropolitan Area, on or after this Act enters into force. |
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 9357, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 9554, Mar. 25, 2009>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 11-4 and 12 (6) shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10166, Mar. 22, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDUM <Act No. 11119, Dec. 2, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 11406, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 37 (2) shall enter into force on May 30, 2012.
Article 2 (Applicability to Period for Evaluation of Business Combination)
The amended provisions of Article 12 (7) and (8) shall apply from the first reporting on the business combination under paragraph (6) of the same Article after this Act enters into force.
Article 3 (Applicability to Period for Disposition)
The amended provisions of Article 49 (4) shall apply from the first case which is investigated pursuant to paragraph (1) or (2) of the same Article after this Act enters into force.
Article 4 (Transitional Measures concerning Imposition of Penalty Surcharges against Unlawful Acts by Business Entities' Organization)
The imposition of a penalty surcharge against an act that is ended before this Act enters into force shall be governed by the former provisions notwithstanding the amended provisions of Article 28 (2) and (3).
ADDENDA <Act No. 11758, Apr. 5, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 11845, May 28, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDUM <Act No. 11937, Jul. 16, 2013>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 12095, Aug. 13, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 (Transitional Measures)
| (1) | Transactions terminated before this Act enters into force shall be governed by the former provisions notwithstanding the amended provisions of this Act. |
| (2) | Transactions being continued as at the time this Act enters into force shall be governed by the former provisions for one year from the date of the enforcement date of this Act. |
ADDENDA <Act No. 12334, Jan. 24, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Prohibition on Circular Shareholding)
| (1) | The amended provisions of Article 9-2 shall apply only to shares acquired or held, after this Act enters into force, by a member compan of a business group designated as a business group subject to limitations on cross shareholding under Article 14 as at the time this Act enters into force. |
| (2) | The amended provisions of Article 9-2 shall apply only to shares acquired or held by a member company of a business group designated as a business group subject to limitations on cross shareholding under Article 14 after the designation date, after this Act enters into force. |
ADDENDUM <Act No. 12708, May 28, 2014>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 13071, Jan. 20, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Revocation of Extension of Deadlines for Paying and Payment in Installments)
The amended provisions of Article 55-4 (3) 4 shall apply from the first application for an extension of a deadline for payment or payment in installments filed after this Act enters into force.
Article 3 (Applicability to Restitution of Rewards)
The amended provisions of Article 64-3 shall apply from the first restitution of a reward to be paid after this Act enters into force.
ADDENDA <Act No. 13450, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 37 (3) shall enter into force two months after the date of its promulgation.
Article 2 (Transitional Measures concerning )
A public official in special service, who serves as a standing commissioner of the Fair Trade Commission under the former Article 37 (3) at the time the amended provisions of Article 37 (3) enter into force, shall be deemed to be appointed as a public official in a fixed term position pursuant to Article 26-5 of the State Public Officials Act on the date the same amended provisions enter into force. In such case, the term of office shall be the remaining period of the term of office as at the time of his/her appointment as a standing commissioner.
ADDENDA <Act No. 14075, Mar. 18, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14127, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 14137, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That amended Articles 11-4 (1), 22-2 (2) through (4), and proviso to Article 28 (3) shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Effect of Interruption of Prescription)
Amended Article 48-6 (4) through (6) shall begin to apply from the first dispute to be applied for mediation after this Act enters into force.
Article 3 (Applicability to Effect of Court Settlement)
Amended Article 48-8 shall begin to apply from the first dispute to be applied for mediation after this Act enters into force.
Article 4 (Applicability to Additional Refunds of Penalty Surcharges)
Amended proviso to Article 55-7 shall begin to apply from the first case where the imposition of a penalty surcharge is revoked by a ruling of the court after this Act enters into force.
Article 5 (Transitional Measures concerning Imposition of Penalty Surcharges against Business Entities' Organizations Engaging in Prohibited Activities)
Notwithstanding the amended proviso to Article 28 (3), the imposition of a penalty surcharge against an act ended before the enforcement date specified in the proviso to Article 1 of the Addenda shall be governed by the former provisions.
Article 6 (Transitional Measures concerning Conclusion of Unfair International Contracts)
The imposition of a penalty surcharge against concluding an unfair international contract before this Act enters into force shall be governed by the former provisions.
Article 7 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions to acts done before this Act enters into force shall be governed by the former provisions.