ENFORCEMENT DECREE OF THE SPECIAL ACT ON THE CORPORATE REVITALIZATION
Presidential Decree No. 27441, Aug. 9, 2016
Amended by Presidential Decree No. 30206, Nov. 12, 2019
Presidential Decree No. 30540, Mar. 24, 2020
Presidential Decree No. 31740, Jun. 9, 2021
Presidential Decree No. 32274, Dec. 28, 2021
Presidential Decree No. 32447, Feb. 17, 2022
Presidential Decree No. 32455, Feb. 18, 2022
Presidential Decree No. 33683, Aug. 29, 2023
Presidential Decree No. 34314, Mar. 19, 2024
Presidential Decree No. 34682, Jul. 9, 2024
Presidential Decree No. 35803, Oct. 1, 2025
Presidential Decree No. 35947, Dec. 30, 2025
CHAPTER I GENERAL PROVISIONS
| Article 2 (Methods of corporate restructuring) |
| (1) | "Means prescribed by Presidential Decree, such as a merger, division, the transfer, acquisition, or possession of shares, and the establishment of a company" in subparagraph 2a of Article 2 of the Special Act on the Corporate Revitalization (hereinafter referred to as the "Act") means the following methods: <Amended on Nov. 12, 2019; Jul. 9, 2024> |
| 6. | Transfer and acquisition of assets for business, such as production facilities and intellectual property rights; |
| 7. | Reduction or closure of facilities and equipment; |
| 8. | Other methods similar to those referred to subparagraphs 1 through 7, which the head of the competent authority deems able to improve business productivity. |
| (2) | "Activities prescribed by Presidential Decree" in subparagraph 2b of Article 2 of the Act, means the following: |
| 1. | Activities that promote the efficiency of methods of production, sale and provision of products, services, etc. (hereinafter referred to as "product, etc."); |
| 2. | Activities that develop, produce and provide a new product, etc., to increase the relative importance of the sale of the relevant product, etc., in gross sales; |
| 3. | Activities that reduce the production cost of a product, etc., by improving methods of using or purchasing raw materials, parts, semi-finished goods, etc.; |
| 4. | Other activities similar to those under subparagraphs 1 through 3, which the head of the competent authority deems able to improve business productivity. |
| Article 3 (State of oversupply) |
"Cases prescribed by Presidential Decree" in subparagraph 4a of Article 2 of the Act means reduced return on sales, slowdown in changes of product prices, etc., compared with cost, lowering operation rate of production equipment, etc., increased inventory-to-sales ratio of products, raw materials, etc., and other situations in which indices showing the management conditions of the type of industry and a company have worsened. <Amended on Jul. 9, 2024>
| Article 3-2 (Scope of new industries) |
"Industry prescribed by Presidential Decree" in subparagraph 5a of Article 2 of the Act means any of the following: <Amended on Aug. 29, 2023; Jul. 9, 2024> | 4. | An industry that utilizes technologies and services for convergence of information and communications defined in Article 2(1)2 of the Special Act on Promotion of Information and Communications Technology and Vitalization of Convergence Thereof; |
[This Article Added on Nov. 12, 2019]
| Article 3-3 (Scope of digital transformation) |
| 2. | Technology recognized for digital transformation business restructuring under Appendix 1. |
[This Article Added on Mar. 19, 2024]
[Moved from Article 3-4; previous Article 3-3 moved to Article 3-5 <Jul. 9, 2024>]
| Article 3-4 (Scope of carbon-neutral activities) |
"Activities prescribed by Presidential Decree" in subparagraph 5c of Article 2 of the Act means creating new products and services or transforming processes by utilizing the following technologies: <Amended on Jul. 9, 2024> | 2. | Technology recognized for carbon-neutral business restructuring under Appendix 2 as green technology under subparagraph 16 of Article 2 of the Framework Act on Carbon Neutrality and Green Growth for the Management of Climate Change. |
[This Article Added on Mar. 19, 2024]
[Moved from Article 3-5; previous Article 3-4 moved to Article 3-3 <Jul. 9, 2024>]
| Article 3-5 (Scope of main industry of industrial crisis area) |
[This Article Added on Nov. 12, 2019]
[Moved from Article 3-3; previous Article 3-5 moved to Article 3-4 <Jul. 9, 2024>]
| Article 3-6 (Balanced regional development activities) |
"Act prescribed by Presidential Decree" in subparagraph 9 of Article 2 of the Act means the following: | 2. | Relocation of enterprises under Article 24(1) of the Special Act on Local Autonomy and Decentralization, and Balanced Regional Development; |
| 3. | Activities that bring innovation to the industrial ecosystem, such as the development and production of new products in areas other than the Metropolitan Area. |
[This Article Added on Jul. 9, 2024]
| Article 4 (Scope of application) |
| (1) | "Items prescribed by Presidential Decree" in Article 4(1)1b of the Act means the following: <Added on Jul. 9, 2024> |
| 1. | Items related to national high-tech strategic technology defined in subparagraph 1 of Article 2 of the Act on Special Measures for Strengthening Competitiveness of, and Protecting National High-Tech Strategic Industries, which become subject to adjustment for emergency supply and demand stabilization pursuant to Article 10(1) of that Act; |
| 4. | Core resources defined in subparagraph 1 of Article 2 of the Special Act on National Resources Security. |
| (2) | "Activities to stabilize the supply chain, such as the production and storage of items and development of alternative technologies" in Article 4(1)1b of the Act means the following: <Added on Jul. 9, 2024> |
| 1. | Domestic production of items falling under any subparagraph of paragraph (1); |
| 2. | Improvement of distribution of items falling under each subparagraph of paragraph (1) or expansion of keeping and storage facilities; |
| 3. | Development and production of alternatives to items falling under any subparagraph of paragraph (1); |
| 4. | Development of alternative technologies related to items falling under any subparagraph of paragraph (1); |
| 5. | Change or diversification of importers to reduce dependence on a specific country on imports of items falling under any subparagraph of paragraph (1). |
| (3) | "Company prescribed by Presidential Decree" in Article 4(1)3 of the Act means any of the following: <Added on Nov. 12, 2019; Feb. 18, 2022; Jul. 9, 2024> |
| 2. | A company that conducts transactions with companies under subparagraph 1 with its head office, branches or places of business located in the Special Metropolitan City, Metropolitan City, Do, or Special Self-Governing Province to which the special area for responding to an industrial crisis belongs, and whose sales from the main industry of the industrial crisis area have accounted for at least 20 percent of its total sales during the three years immediately preceding the year of designation as the special area for responding to an industrial crisis. |
| (4) | "Company that meets requirements prescribed by Presidential Decree" in Article 4(2)1 of the Act means any of the following companies to which the head of the competent authority deems it necessary to apply the Act: <Amended on Nov. 12, 2019; Jul. 9, 2024> |
| 1. | A company the details of the business and activities of which have an important effect on the stabilization of employment or economic activities in a region where its place of business is located; |
| 2. | A company with high-tech or core industrial technology required to prevent the divulgence of, and to utilize, the relevant industrial technology. |
CHAPTER II ESTABLISHMENT OF CORPORATE RESTRUCTURING PROMOTION SYSTEM
| Article 5 (Qualification of members of Corporate Restructuring Plan Review Committee) |
"Persons who have extensive knowledge and experience in corporate restructuring prescribed by Presidential Decree" in Article 6(5)3 of the Act means any of the following: <Amended on Jul. 9, 2024> | 1. | A person who holds or held office as at least associate professor at a university under subparagraphs 1 through 6 of Article 2 of the Higher Education Act or the office equivalent thereto at an officially recognized research institute, who has at least ten years experience in research related to industrial and company policy, company reorganization, etc.; |
| 2. | An attorney-at-law or certified public accountant, who has at least ten years experience in corporate legal affairs, corporate accounting, company reorganization or corporate restructuring; |
| 3. | A person who has worked for a company, a financial company, or a finance-related field for at least 10 years and has at least five years of experience in affairs related to company reorganization or corporate restructuring; |
| 5. | Other persons who have at least 15 years of experience in affairs related to company reorganization or corporate restructuring. |
| Article 6 (Operation of Corporate Restructuring Plan Review Committee) |
| (1) | Two chairpersons (hereinafter referred to as the "co-chairpersons") of the Corporate Restructuring Plan Review Committee (hereinafter referred to as the "Review Committee") referred to in Article 6(1) of the Act, shall jointly convene meetings of the Review Committee and preside at the meetings alternately. |
| (2) | Where the co-chairpersons intend to convene a meeting, they shall notify each member of the Review Committee of the date, time, venue and agenda of the meeting by no later than seven days before the meeting in writing or by electronic means; provided, the foregoing shall not apply in urgency. |
| (3) | The Review Committee shall pass resolutions with a majority of incumbent members present, and with the consent of a majority of the members present. |
| (4) | One administrative secretary shall be assigned to the Review Committee to conduct its affairs, and a public official of Grade 4 belonging to the Ministry of Trade, Industry and Resources, appointed by the Minister of Trade, Industry and Resources, shall become the administrative secretary. <Amended on Oct. 1, 2025> |
| (5) | A subcommittee shall be comprised of not less than five but not more than ten members, including one chairperson. <Added on Jul. 9, 2024> |
| (6) | The members of a subcommittee shall be jointly appointed by the co-chairpersons from among the members of the Review Committee, and the chairperson of the subcommittee shall be elected by and from its members. <Added on Jul. 9, 2024> |
| (7) | In addition to matters provided for in paragraphs (1) through (6), the co-chairpersons shall jointly prescribe matters necessary for the formation and operation of the Review Committee and subcommittee following a resolution passed by the Review Committee. <Amended on Jul. 9, 2024> |
| Article 6-2 (Composition and operation of corporate restructuring determination committee) |
| (1) | The Corporate Restructuring Determination Committee established under Article 6(12) of the Act (hereinafter referred to as the "Determination Committee") shall be comprised of 10 members, including one chairperson. <Amended on Jul. 9, 2024> |
| (2) | A member of the Senior Executive Service of the Ministry of Trade, Industry and Resources, nominated by the Minister of Trade, Industry and Resources, shall become the chairperson of the Determination Committee (hereinafter referred to as "chairperson of the Determination Committee") and the following persons shall be the members thereof: <Amended on Jul. 9, 2024; Oct. 1, 2025; Dec. 30, 2025> |
| 1. | A person each designated by the head of the agency to which he or she belongs, from among public officials of Grade III or IV of the Ministry of Economy and Finance and the Ministry of Science and ICT; |
| 2. | A person commissioned by the Minister of Trade, Industry and Resources, from among persons with extensive knowledge of and experience in new industries, digital transformation or carbon neutrality. |
| (3) | One administrative secretary shall be assigned to the Determination Committee to assist its affairs, and he or she shall be nominated by the Minister of Trade, Industry and Resources from among public officials of Grade IV of the Ministry of Trade, Industry and Resources. <Amended on Oct. 1, 2025> |
| (4) | The chairperson of the Determination Committee shall convoke a meeting of the Determination Committee (hereinafter referred to as "meeting of the Determination Committee") if requested by the co-chairpersons, and shall preside over such meeting. |
| (5) | The Determination Committee shall determine whether the business or activity that an applicant company under Article 9(2) of the Act (hereinafter referred to as "applicant company") intends to conduct through corporate restructuring falls under future corporate restructuring, in consideration of the following: |
| 1. | The level of target technology and the difficulty and feasibility of commercialization thereof; |
| 2. | Marketability, such as the specifics of markets and their size and possibility of entry; |
| 3. | Ripple effects, such as the level of industrial ramifications, distinctive technologies, etc.; |
| 4. | Growth potential, such as international competitiveness, the creation of new markets, and market growth rate; |
| 5. | Contribution to the national economy through job creation, etc. |
| (6) | Where a company promoting corporate restructuring falls under any of the following cases, it shall be deemed to have obtained a determination on future corporate restructuring from the Review Committee pursuant to paragraph (5): <Added on Jul. 9, 2024> |
| 2. | Where it obtained a regulatory exception for demonstration under subparagraph 8 of Article 2 of the Industrial Convergence Promotion Act or temporary permission under subparagraph 9 of that Article for a new product or service in the field of corporate restructuring and has submitted a corporate restructuring plan before the expiry of the validity thereof. |
| (7) | The Determination Committee may, if deemed necessary for deliberation on agenda items, require relevant public officials and experts in the fields of new industry, digital transformation or carbon neutrality to attend a meeting to hear their opinions. <Amended on Jul. 9, 2024> |
| (8) | Article 6(6) through (11) of the Act shall apply mutatis mutandis to the exclusion of, challenge to, recusal of, dismissal of, term of office of a member of the Determination Committee, and its minutes of meetings, and Article 6(2) and (3) shall apply mutatis mutandis to the operation of the Determination Committee. In such cases, "Review Committee" shall be construed as "Determination Committee", and "co-chairpersons" as "chairperson of the Determination Committee". <Amended on Jul. 9, 2024> |
| (9) | Except as provided in paragraphs (1) through (8), matters necessary for the composition and operation of the Determination Committee shall be determined by its chairperson following a resolution by the Determination Committee. <Amended on Jul. 9, 2024> |
[This Article Added on Nov. 12, 2019]
[Title Amended on Jul. 9, 2024]
| Article 7 (Amendment to insignificant matters in guidelines for implementation of corporate restructuring plans) |
"Amendment to insignificant matters prescribed by Presidential Decree" in the proviso to Article 7(3) of the Act, means an alteration of a simple term or phrase without amending the details of guidelines for the implementation of corporate restructuring plans (hereinafter referred to as "guidelines for the implementation of corporate restructuring plans") under Article 7(1) of the Act, or correction of obvious errors.
| Article 8 (Implementation of basic research related to corporate restructuring) |
The Minister of Trade, Industry and Resources may conduct fact-finding surveys related to corporate restructuring, and gather and analyze statistical data (hereinafter referred to as "basic research") on the following, pursuant to Article 8(1) of the Act: <Amended on Nov. 12, 2019; Oct. 1, 2025> | 1. | Statistics related to criteria to determine oversupply, etc., such as return on sales, and the rate of operation of production facilities; |
| 2. | Statistics related to determination on new industries; |
| 3. | Statistics related to the trends in the main industry of an industrial crisis area; |
| 4. | Statistics related to sales, employment, liabilities, etc., of a company under corporate restructuring; |
| 5. | Matters necessary for the improvement of regulations and support related to corporate restructuring; |
| 6. | Other matters the Minister of Trade, Industry and Resources deems necessary to deliberate on a corporate restructuring plan. |
| Article 8-2 (Corporate restructuring support council) |
| (1) | The Corporate Restructuring Support Council established under Article 8-2 of the Act may be comprised of not more than 20 members, including the chairperson, from among executive officers and employees of leading enterprises, associations and organizations for each major industry, policy financial institutions, commercial banks, etc. and experts in corporate restructuring. |
| (2) | Where the head of the competent authority organizes the Corporate Restructuring Support Council pursuant to paragraph (1), he or she shall notify the Minister of Trade, Industry and Resources thereof. <Amended on Oct. 1, 2025> |
| (3) | Except as provided in paragraphs (1) and (2), matters necessary for the composition and operation of the Corporate Restructuring Support Council shall be determined by the head of the competent authority. |
[This Article Added on Jul. 9, 2024]
CHAPTER III FILING FOR APPROVAL OF CORPORATE RESTRUCTURING PLANS
| Article 9 (Goals of corporate restructuring plans) |
| (1) | "Matters prescribed by Presidential Decree" in the main clause of Article 9(2)2 of the Act means the level of management indicators in accordance with the following classifications that a company is to achieve by implementing a corporate restructuring plan upon completion of corporate restructuring: <Amended on Nov. 12, 2019; Jul. 9, 2024> |
| 1. | A company falling under Article 4(1)1a or 3 of the Act: Management indicators related to goals for improving productivity and financial soundness, such as the return on assets, tangible asset turnover, added value ratio, and interest coverage ratio; |
| 2. | A company falling under Article 4(1)1b or 2 of the Act: Management indicators related to profitability goals, such as sales and operating profit ratio in the field of supply chain stabilization or future corporate restructuring; investment goals in tangible and intangible assets for business; employment goals, such as new employment; or other goals submitted by the company. |
| (2) | "Matters prescribed by Presidential Decree, such as greenhouse gas reduction" in the proviso of Article 9(2)2 of the Act means the level of achievements in terms of the following that a company is to make by implementing a corporate restructuring plan upon completion of corporate restructuring: <Amended on Nov. 12, 2019> |
| 1. | Management indicators under paragraph (1)2; |
| 2. | Greenhouse gas reduction; |
| 3. | Level of introduction of eco-friendly manufacturing processes; |
| 4. | Development of technologies related to eco-friendly products and services; |
| 5. | Proportion of sales of eco-friendly products and services. |
[Title Amended on Nov. 12, 2019]
| Article 10 (Return of corporate restructuring plan) |
| (1) | "Reasons for return prescribed by Presidential Decree, such as false or incorrect entries in the corporate restructuring plan" in Article 9(8)1 of the Act, means any of the following: <Amended on Nov. 12, 2019> |
| 1. | Where a company fails to enter or falsely enters matters under Article 9(2) of the Act into the corporate restructuring plan; |
| 2. | Where a company fails to submit related data to ascertain matters under the subparagraphs of Article 9(2) of the Act. |
| (2) | "Standards prescribed by Presidential Decree" in Article 9(8)4 of the Act means standards established in the guidelines for the implementation of a corporate restructuring plan, based upon the changes in long-term performance and trends of management indicators of the industry and a company, various management conditions, etc. <Amended on Nov. 12, 2019> |
| (3) | "Cases prescribed by Presidential Decree" in Article 9(8)5 of the Act means cases where the head of the competent authority deems it impractical for a company to achieve the goals presented in a corporate restructuring plan in consideration of the management and financial conditions of the applicant company, domestic and overseas market conditions, etc. <Amended on Nov. 12, 2019> |
| Article 11 (Review and approval of corporate restructuring plan) |
| (2) | "Period prescribed by Presidential Decree" in the former part of Article 10(2) of the Act means 30 days, but where it is impractical to examine matters within 30 days because matters to be examined are substantial or complicated, this means 60 days. |
| (3) | "Details prescribed by Presidential Decree" in the former part of Article 10(2) of the Act means the following: <Amended on Nov. 12, 2019; Jul. 9, 2024> |
| 1. | Matters in accordance with the following classifications: |
| a. | A company falling under Article 4(1)1 of the Act: Whether the type of industry to which its area of business belongs is in oversupply or suffers from threats to the supply chain; |
| b. | A company falling under Article 4(1)2 of the Act: Whether the business or activity it intends to conduct through corporate restructuring falls under future corporate restructuring; |
| c. | A company falling under Article 4(1)3 of the Act: Whether the relevant business sector belongs to the main industry of an industrial crisis area; |
| 2. | Whether any matters constitute the grounds for return under Article 9(8) of the Act. |
| (4) | "Period prescribed by Presidential Decree" in the latter part of Article 10(2) of the Act means 30 days, but where it is impractical to deliberate on matters within 30 days because matters to be deliberated are substantial or complicated, and where the Deliberate Committee has passed a resolution, this means 60 days. |
| (5) | "Where the head of the competent authority determines that a corporate restructuring plan includes matters prescribed by Presidential Decree, such as succession of management rights, strengthening the corporate governance of persons who have a special relationship, bestowing unjust enrichment on affiliate companies of a conglomerate restricted from cross-shareholding" in Article 10(7) of the Act means any of the following: <Amended on Nov. 12, 2019; Dec. 28, 2021> |
| 1. | Where the head of the competent authority deems that the objectives of a corporate restructuring plan are for succession of management rights or strengthening the corporate governance of entities which have a special relationship when considering the merger ratio, stock swap ratio, change, etc., of the largest shareholder or major shareholders following the implementation of a corporate restructuring plan; |
| 2. | Where the head of the competent authority deems that the objectives of a corporate restructuring plan of a conglomerate restricted from cross-shareholding, fall under any of the following: |
| Article 12 (Publication of approval of dorporate restructuring plans) |
| (1) | Where the head of the competent authority approves a corporate restructuring plan, he or she shall publish the details thereof in the Official Gazette and on the website of the competent authority pursuant to Article 10(9) of the Act. <Amended on Nov. 12, 2019> |
| (2) | Where an applicant company and the Review Committee are notified of the determination of approval from the head of the competent authority, the company and the Review Committee shall immediately publicly announce the details notified, including the necessity and important matters of the corporate restructuring plan in the Official Gazette and on the website of the relevant company pursuant to Article 10(10) of the Act. <Amended on Nov. 12, 2019> |
| Article 13 (Reporting on implementation of corporate restructuring plans) |
| (1) | A company that has obtained approval of a corporate restructuring plan (including a company newly established by merger, division, etc. under a corporate restructuring plan; hereinafter referred to as "approved company") from the head of the competent authority pursuant to Article 10 of the Act, shall report on whether the corporate restructuring plan is implemented, the results of corporate structuring, etc., within the following period to the head of the competent authority pursuant to Article 11(1) of the Act: <Amended on Nov. 12, 2019> |
| 1. | Where a corporate restructuring plan is in progress: |
| a. | Whether the plan is implemented and the results thereof: Within one month after the elapse of one year, following the approval of the corporate restructuring plan; |
| b. | Financial information, such as a statement of financial position: Within three months after the end of each business year, following the approval of the corporate restructuring plan; |
| 2. | Where a corporate restructuring plan is completed; |
| a. | Final performance: Within three months from the completion of the corporate restructuring plan; |
| b. | Financial information, such as a statement of financial position: Within three months from the end of the business year in which the business restructuring plan ends. |
| (2) | Notwithstanding the subparagraphs of paragraph (1), where there is a gap of less than three months between the deadline for reporting on whether the corporate restructuring plan is implemented, the results or the final results thereof and the deadline for reporting on financial information, a report on whether the corporate restructuring plan is implemented, the results or the final results thereof may be filed at the same time by the deadline coming later. <Added on Nov. 12, 2019> |
| (3) | Where it is necessary to check the current status of the implementation of the corporate restructuring plan due to important management changes in the approved company, changing external conditions, or at the request of interested parties, such as shareholders or creditors, the head of the competent authority may require the approved company to submit data on the corporate restructuring and management conditions pursuant to Article 11(2) of the Act. <Amended on Nov. 12, 2019> |
| (4) | An approved company requested to submit data pursuant to paragraph (3), shall submit such data to the head of the competent authority within 30 days from the date of receipt of such request. <Amended on Nov. 12, 2019> |
| (5) | The head of the competent authority may request an approved company to correct the approved corporate restructuring plan and other conditions of implementation within a fixed period not exceeding six months, pursuant to Article 11(3) of the Act. <Amended on Nov. 12, 2019> |
| (6) | An approved company requested to make corrections pursuant to paragraph (5) shall take necessary measures within the specified period and notify the head of the competent authority of the results thereof. <Amended on Nov. 12, 2019> |
| (7) | The head of the competent authority shall publish whether the corporate restructuring plan under paragraph (1) is implemented and the results thereof, and requests for corrections under paragraph (5) in the Official Gazette and on the website of the competent authority pursuant to Article 11(4) of the Act. <Amended on Nov. 12, 2019> |
| (8) | "Matters prescribed by Presidential Decree, such as whether the approved company has achieved its goals to improve productivity, sales and financial soundness" in Article 11(6) of the Act means the following: <Amended on Nov. 12, 2019> |
| 1. | Results of the implementation of detailed improvements included in the corporate restructuring plan, such as the amount of and methods for raising funds, an employment, and investment plan; |
| 2. | Whether the company has achieved its goals to improve productivity and financial soundness in the corporate restructuring plan; |
| 3. | Matters in accordance with the following classifications: |
| a. | A company falling under Article 4(1)1 of the Act: Whether the company has contributed to reducing or resolving oversupply in the relevant type of industry; |
| b. | A company falling under Article 4(1)2 of the Act: Whether the company has contributed to sales growth, etc. in new industries; |
| c. | A company falling under Article 4(1)2 of the Act: Whether the company has contributed to overcoming a crisis faced by an industrial crisis area; |
| 4. | Other matters deemed necessary by the head of the competent authority to evaluate the implementation of the corporate restructuring plan. |
| (9) | The head of the competent authority shall publish matters evaluated pursuant to Article 11(6) of the Act in the Official Gazette and on the website of the competent authority pursuant to Article 11(6) of the Act. <Amended on Nov. 12, 2019> |
| Article 14 (Amendment to corporate restructuring plans) |
| (1) | "Circumstances prescribed by Presidential Decree" in Article 12(1)3 of the Act means where any unexpected change in market conditions makes it difficult to manage business or there is a change in management conditions, such as temporary closure of business, suspension of operation and organizational change: <Amended on Nov. 12, 2019> |
| 1. | Deleted; <Nov. 12, 2019> |
| 2. | Deleted; <Nov. 12, 2019> |
| 3. | Deleted. <Nov. 12, 2019> |
| (2) | "Modification to any minor matter prescribed by Presidential Decree" in the proviso of Article 12(2) of the Act means any modification of a simple term or phrase without substantial modification to the contents of the corporate restructuring plan, and any correction of obvious errors. <Added on Nov. 12, 2019> |
| Article 15 (Revocation of approval of corporate restructuring plans) |
| (1) | "Cases prescribed by Presidential Decree, such as succession of management rights, strengthening corporate governance of persons in a special relationship, the provision of unfair profits to affiliate companies of a conglomerate restricted from cross-shareholding" in Article 13(1)2 of the Act, means cases falling under Article 11(5). |
| Article 16 (Procedures for redemption) |
| (1) | Where a company whose approval of a corporate restructuring plan under Article 14(1) of the Act is revoked (hereinafter referred to as "company with revoked approval") receives support in national or local taxes pursuant to Article 27 of the Act, the head of the competent authority shall notify the Commissioner of the National Tax Service or the head of a local government of the revocation of the approval so that the Commissioner of the National Tax Service or the head of the local government may fully or partially recover the tax support pursuant to Acts related to taxation. |
| (2) | Where the head of the competent authority intends to fully or partially recover monetary benefits provided pursuant to Articles 28 through 30 of the Act to a company with revoked approval pursuant to the former part of Article 14(2) of the Act, he or she shall notify, in writing, the relevant company with revoked approval of the following. In such cases, the deadline for payment of money to be recovered, shall be at least 30 days from the date of notification: |
| 1. | Matters to be redeemed and grounds for redemption; |
| 2. | Amount to be redeemed; |
| 3. | Payment deadline and receiving agency. |
| (3) | Upon receipt of notification referred to in paragraph (2), where a company with revoked approval fails to redeem by the payment deadline, the head of the competent authority shall compel the company to redeem it, fixing a period of at least 15 days. |
| (4) | Upon receipt of notification referred to in paragraph (2), where a company with revoked approval fails to redeem by the payment deadline, the interest for the period from the day after the deadline to the date of payment shall be added to the amount of redemption, which has been notified. In such cases, the statutory interest rate under Article 3(1) of the Act on Special Cases concerning Expedition of Legal Proceedings shall apply thereto. |
| (5) | Where an institution has provided monetary benefits to a company with revoked approval pursuant to Articles 28 through 30 of the Act, the head of the competent authority shall immediately notify the head of the relevant institution of the revocation of the approval so that the head of the relevant institution fully or partially recover monetary benefits he or she has provided pursuant to paragraphs (2) through (4). |
CHAPTER IV SUPPORT FOR CORPORATE RESTRUCTURING
| Article 17 (Exceptions to small-scale mergers) |
"Percentage prescribed by Presidential Decree" in Article 16(2) of the Act means ten percent.
| Article 17-2 (Concurrent procedures for authorization for cartel conduct) |
| (1) | "Company prescribed by Presidential Decree" in the former part of Article 24-2 of the Act means a company which jointly applies for approval for a corporate restructuring plan under Article 9(4) of the Act or a company which applies for approval for a corporate restructuring plan containing cartel conduct for any of the purposes listed in the subparagraphs of Article 40(2) of the Monopoly Regulation and Fair Trade Act. |
| (2) | Notwithstanding Article 46(1) of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act, an enterprise intending to take concurrent procedures for authorization for cartel conduct pursuant to the former part of Article 24-2 of the Act shall also submit an application for authorization for cartel conduct under paragraph (1) of that Article and documents listed in the subparagraphs of paragraph (2) of that Article when submitting a corporate restructuring plan to the head of the competent ministry under Article 9 of the Act. |
| (3) | The head of the competent ministry shall forward the application for authorization for cartel conduct and attached documents submitted pursuant to paragraph (2) to the Fair Trade Commission. In such cases, the head of the competent ministry may present his or her opinions on the necessity of such cartel conduct, the effect thereof, etc. |
| (4) | When the head of the competent ministry has sent an application for authorization for cartel conduct and attached documents to the Fair Trade Commission pursuant to paragraph (3), Article 46(3) through (7) of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act shall apply, deeming that the enterprise intending to take concurrent procedures for authorization for cartel conduct has submitted an application for cartel conduct to the Fair Trade Commission under paragraph (1) of that Article. |
[This Article Added on Mar. 19, 2024]
| Article 17-3 (Companies supporting corporate restructuring for coexistence) |
| (1) | A company intending to be selected as a company supporting corporate restructuring for coexistence pursuant to Article 24-3(1) of the Act shall submit a plan for supporting corporate restructuring for coexistence (hereinafter referred to as "coexistence support plan"), including the following, to the Minister of Trade, Industry and Resources: <Amended on Oct. 1, 2025> |
| 1. | The name, location, and contact information of the company intending to promote support corporate restructuring for coexistence (hereinafter referred to as "coexistence support"); |
| 2. | The name and location of the company eligible for coexistence support; |
| 3. | A coexistence support plan, containing the details and duration of such support; |
| 4. | Effects of coexistence support, such as the creation of jobs and investment, and promotion of the advancement of industrial structures; |
| 5. | Materials verifying a coexistence support plan, such as an agreement on coexistence support. |
| (2) | Where any of the matters prescribed in the subparagraphs of paragraph (1) is omitted or erroneously stated in a coexistence support plan, the Minister of Trade, Industry and Resources may request supplementation thereof. <Amended on Oct. 1, 2025> |
| (3) | The Minister of Trade, Industry and Resources may select companies supporting corporate restructuring for coexistence after examining whether the requirements under the subparagraphs of Article 24-3(1) of the Act are satisfied and the feasibility of a coexistence support plan, etc. within 60 days from the date of receipt of the plan. <Amended on Oct. 1, 2025> |
| (4) | The period of validity of the selection of a company supporting corporate restructuring for existence under Article 24-3(4) of the Act shall be determined by the Minister of Trade, Industry and Resources to the extent that it does not exceed the period of a corporate restructuring plan of the company eligible for coexistence support. <Amended on Oct. 1, 2025> |
| (5) | A company selected as a company supporting corporate restructuring for coexistence pursuant to Article 24-3(1) of the Act (hereinafter referred to as "a company supporting coexistence") shall submit to the Minister of Trade, Industry and Resources a report on the performance in coexistence support during the validity period of the selection under paragraph (4). <Amended on Oct. 1, 2025> |
| (6) | Where a company supporting coexistence falls under any of the following cases, the Minister of Trade, Industry and Resources may revoke its selection; provided, where it falls under subparagraph 1, the Minister of Trade, Industry and Resources shall revoke its selection: <Amended on Oct. 1, 2025> |
| 1. | Where it is selected by fraud or other improper means; |
| 2. | Where it fails to implement the coexistence support plan for at least one year continuously without good cause; |
| 3. | Where the performance in terms of support is significantly low in light of the coexistence support plan. |
[This Article Added on Jul. 9, 2024]
| (1) | "Cases prescribed by Presidential Decree" in Article 28(2)1 of the Act means where a company invests in equipment for the improvement of performance and efficiency, such as the introduction of new equipment or the improvement of existing equipment. |
| (2) | "Cases prescribed by Presidential Decree" in Article 28(2)2 of the Act means where a company invests to acquire land for the construction, relocation or extension of a factory, build the factory or improve the working conditions. |
| (3) | "Cases prescribed by Presidential Decree" in Article 28(2)3 of the Act means where a company engages in management innovation activities accompanied by consulting, marketing, market research, product analysis, etc. |
| (4) | "Cases prescribed by Presidential Decree" in Article 28(2)4 of the Act means where a company invests and engages in innovation activities related to the changes, etc., of business structures to improve productivity. |
| (5) | A company which intends to receive funding under Article 28(1) of the Act shall submit a corporate restructuring plan, specifying matters for which funding is required, when it files for approval of the corporate restructuring plan under Article 9(1) of the Act. |
| Article 19 (Support for research and development activities) |
| (1) | The head of the competent authority and the head of a local government may fully or partially subsidize the expenses incurred in engaging in the following activities, to an approved company pursuant to Article 29(1) of the Act: |
| 1. | Research and development activities concerning the production and development of products, etc.; |
| 2. | Research and development activities for the improvement of methods of production and provision of products, etc.; |
| 3. | Research and development activities for cost reduction. |
| (2) | A company that intends to obtain support under Article 29(1) of the Act shall submit a corporate restructuring plan, specifying matters for which support is required, when it files for approval of the corporate restructuring plan under Article 9(1) of the Act. |
| Article 20 (Support for development of aptitude and stabilization of employment) |
| (1) | Where approved companies, or employees of the approved companies wish to obtain support under Article 31(2) of the Act for the stabilization of employment and the development of aptitude, the head of the competent authority may recommend the approved companies or the employees thereof as the companies or employees eligible for preferential support to the Minister of Employment and Labor. |
| (2) | Upon receipt of a recommendation under paragraph (1), the Minister of Employment and Labor shall consider such recommendation first, and procedures related to support referred to in paragraph (1) shall be governed by related statutes or regulations, such as the Employment Insurance Act or the National Lifelong Vocational Skills Development Act. <Amended on Feb. 17, 2022> |
| Article 20-2 (Gains on transfer) |
| (1) | "Amount of gains on transfer prescribed by Presidential Decree" in Article 31-2(2) of the Act means the amount equivalent to 70/100 of the sale price of land for industrial use, etc. disposed of pursuant to Article 31-2(1) of the Act from which the following amounts are excluded (hereinafter referred to as "gains on transfer"): |
| 2. | Taxes and public charges, including capital gains tax; |
| 3. | All other expenses related to the sale of the relevant land for industrial use, etc. |
| (2) | An approved company that intends to report pursuant to Article 31-2(4) of the Act shall submit a report on disposal in the attached Form to the head of the competent authority, along with the following documents. In such cases, the head of the competent authority shall verify a certificate of land registration or a certificate of building registration through administrative data matching under Article 36(1) of the Electronic Government Act: |
| 1. | A copy of a transfer contract; |
| 2. | Data proving the matters under the subparagraphs of paragraph (1). |
[This Article Added on Nov. 12, 2019]
CHAPTER V SUPPORT FOR RESOLVING DIFFICULTIES DUE TO REGULATIONS
| Article 21 (Verification of interpretation and application of statutes, etc.) |
| (1) | A company, applicant company, and approved company that request the head of the competent authority to verify the interpretation and application of statutes, local laws and regulations, administrative rules, etc. (hereinafter referred to as "statutes, etc.") that apply to the relevant corporate restructuring and relevant business activities pursuant to Article 32(1) of the Act, shall prepare a written request stating the specific details of statutes, etc., and submit such written request to the head of the competent authority. |
| (2) | "Period prescribed by Presidential Decree" in Article 32(2)1 of the Act and the former part of Article 32(2)2 means 30 days, respectively, and where it is impractical to notify the interpretation and application within 30 days because matters for which verifications are requested are substantial or complicated, this means 60 days, respectively. |
| Article 22 (Improvement of administrative regulations by means of proposals made by companies) |
| (1) | Any applicant company or approved company that request to improve administrative regulations (referring to administrative regulations under Article 2(1)1 of the Framework Act on Administrative Regulations; hereinafter the same shall apply) pursuant to Article 33(1) of the Act shall submit a written request to improve administrative regulations provided for in guidelines for the implementation of the corporate restructuring plan to the head of the competent authority. |
| (2) | A written request for the improvement of administrative regulations under paragraph (1) shall include the following: |
| 1. | Matters that require to improve administrative regulations; |
| 2. | Grounds for and purpose of requesting to improve administrative regulations; |
| 3. | A plan to mitigate adverse effects that may occur when administrative regulations are improved; |
| 4. | Statutes related to improving administrative regulations and an agency having jurisdiction over the administrative regulations. |
| (3) | The head of the competent authority, the head of a relevant agency and the head of a local government who decides to allow the improvement of administrative regulations pursuant to Article 33 of the Act, shall publish the details of the implementation of expected improvements in administrative regulations including the following in the Official Gazette or official bulletin and on the website of the relevant authority or agency, and devise measures necessary to improve administrative regulations after gathering consensus, such as public hearings, and consultations with relevant agencies pursuant to Article 34 of the Act: |
| 1. | Matters subject to the improvement of administrative regulations; |
| 2. | Grounds for and purpose of decision to improve administrative regulations; |
| 3. | A plan to mitigate adverse effects that may occur when administrative regulations are improved; |
| 4. | Statutes related to improving administrative regulations and an agency having jurisdiction over the administrative regulations. |
| 5. | Deadline for the completion of measures to improve administrative regulations. |
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 23 (Entrustment of affairs) |
| (1) | The Minister of Trade, Industry and Resources may entrust affairs referred to in Article 36(1) of the Act to any of the following institutions, corporations, or organizations exclusively in charge: <Amended on Oct. 1, 2025> |
| 3. | Other institutions, corporations, or organizations that the Minister of Trade, Industry and Resources deems to have experts and organs exclusively in charge of supporting corporate restructuring. |
| (2) | Upon entrusting his or her duties pursuant to paragraph (1), the Minister of Trade, Industry and Resources shall publicly notify the name, representative, and location of an institution entrusted with the duties, details of the duties entrusted, etc. in the official gazette. <Amended on Oct. 1, 2025> |
| Article 23-2 (Comprehensive corporate restructuring support center) |
| (1) | Pursuant to Article 36-2(1) of the Act, the Minister of Trade, Industry and Resources may establish and operate a comprehensive corporate restructuring support center (hereinafter referred to as "comprehensive support center") or may have a non-profit corporation established under the Civil Act or other statutes establish and operate the comprehensive support center in order to ensure smooth performance of the affairs entrusted under Article 36(1). <Amended on Oct. 1, 2025> |
| (2) | A comprehensive support center may designate any of the following institutions or corporations for each major region as an on-site support center in consultation with the Ministry of Trade, Industry and Resources and a metropolitan government pursuant to Article 36-2(2) of the Act: <Amended on Oct. 1, 2025> |
| 2. | A non-profit corporation established under the Civil Act or other statutes; |
| (3) | The Minister of Trade, Industry and Resources may subsidize expenses necessary for the performance and operation of a comprehensive support center and on-site support centers under paragraph (2). <Amended on Oct. 1, 2025> |
| (4) | A comprehensive support center and on-site support centers under paragraph (2) shall submit to the Minister of Trade, Industry and Resources a report on the performance in terms of support for the previous year by March 31 of each year. <Amended on Oct. 1, 2025> |
[This Article Added on Jul. 9, 2024]
| Article 23-3 (Specialized support institution for corporate restructuring) |
| (1) | Pursuant to Article 36-3(1) of the Act, the Minister of Trade, Industry and Resources may select any of the following institutions which has expertise in finance, law, accounting, etc. and performs affairs related to corporate restructuring as a specialized support institution for corporate restructuring: <Amended on Oct. 1, 2025> |
| 5. | Other institutions or corporations recognized by the Minister of Trade, Industry and Resources as having human and physical capabilities to perform affairs related to support for corporate restructuring. |
| (2) | The term of validity of a specialized support institution selected pursuant to paragraph (1) shall be five years. |
| (3) | Where a specialized support institution files an application for extension of the period of validity before the period of validity under paragraph (2) expires, the Minister of Trade, Industry and Resources may extend the period of validity in consideration of its performance in terms of support for corporate restructuring, etc. <Amended on Oct. 1, 2025> |
| (4) | Where the Minister of Trade, Industry and Resources has selected a specialized support institution pursuant to paragraph (1), he or she shall publicly announce the name and representative of such institution, affairs related to support, and other information on the website of the Ministry of Trade, Industry and Resources. <Amended on Oct. 1, 2025> |
| (5) | A specialized support institution shall submit to the Minister of Trade, Industry and Resources an annual report on the performance in terms of support. <Amended on Oct. 1, 2025> |
| (6) | Where a specialized support institution falls under any of the following cases, the Minister of Trade, Industry and Resources may revoke its selection; provided, where it falls under subparagraph 1, the Minister of Trade, Industry and Resources shall revoke its selection: <Amended on Oct. 1, 2025> |
| 1. | Where it is selected by fraud or other improper means; |
| 2. | Where it fails to provide corporate restructuring support for at least one consecutive year without good cause; |
| 3. | Where its performance in terms of corporate restructuring support is significantly poor. |
[This Article Added on Jul. 9, 2024]
| Article 24 (Administrative fines) |
The criteria for imposing administrative fines under Article 38 of the Act shall be as specified in Appendix 3. <Amended on Mar. 19, 2024>
| Article 25 (Penalty surcharges) |
| (1) | "Amount of monetary support prescribed by Presidential Decree" in Article 39 of the Act means the aggregate amount of monetary support under Articles 27 through 30 of the Act. In such cases, the amount of monetary support following tax support under Article 27 of the Act shall be based on the exempted or reduced amount calculated, as prescribed by statutes that provide the basis for support, such as the Act on Restriction on Special Cases concerning Taxation. <Amended on Nov. 12, 2019> |
| (2) | "Amount prescribed by Presidential Decree" in Article 39(2) of the Act means the following: <Added on Nov. 12, 2019> |
| 1. | Where the approval of a corporate restructuring plan is revoked under Article 13 of the Act: Gains on transfer; |
| 2. | Where gains on transfer have been used, in violation of Article 31-2(2) of the Act: An amount obtained by subtracting the amount used for the purposes referred to in the subparagraphs of Article 31-2(2) of the Act from the amount equivalent to 70/100 of the gains on transfer. |
| (3) | To impose a penalty surcharge under Article 39(1) of the Act, the head of the competent authority shall notify in writing of the payment of penalty surcharge, clarifying the type of the relevant offense and the amount of such penalty surcharge. <Added on Nov. 12, 2019> |
| (4) | A person notified pursuant to paragraph (3) shall pay the penalty surcharge to the collecting agency designated by the head of the competent ministry within 20 days from the date of receipt of such notice. <Amended on Nov. 12, 2019; Dec. 12, 2023> |
| (5) | The receiving agency that has received a penalty surcharge under paragraph (4) shall issue a receipt to the payer and notify the head of the competent authority of the receipt of the penalty surcharge without delay. <Added on Nov. 12, 2019> |
ADDENDUM <Presidential Decree No. 27441, Aug. 9, 2016>
This Decree shall enter into force on August 13, 2016.
ADDENDA <Presidential Decree No. 30206, Nov. 12, 2019>
Article 1 (Enforcement date)
This Decree shall enter into force on November 13, 2019.
Article 2 (Applicability to deadline for reporting on whether corporate restructuring plan is implemented, and results thereof)
The amended provisions of Article 13(1)1 shall also apply where an approved company that has obtained approval of its corporate restructuring plan before this Decree enters into force reports on whether the corporate restructuring plan is implemented, the results thereof, etc. after this Decree enters into force. In such cases, the approved company whose deadline for reporting on the plan is implemented and the results thereof pursuant to the amended provisions of Article 13(1)1a as at the time this Decree enters into force has expired or with less than one month remaining until the deadline, shall report on whether the corporate restructuring plan is implemented and the results thereof within one month from the date this Decree enters into force.
ADDENDA <Presidential Decree No. 30540, Mar. 24, 2020>
Article 1 (Enforcement date)
This Decree shall enter into force on April 5, 2020.
ADDENDA <Presidential Decree No. 31740, Jun 8, 2021>
Article 1 (Enforcement date)
This Decree shall enter into force on June 9, 2021.
ADDENDA <Presidential Decree No. 32274, Dec. 28, 2021>
Article 1 (Enforcement date)
This Decree shall enter into force on December 30, 2021.
ADDENDA <Presidential Decree No. 32447, Feb. 17, 2022>
Article 1 (Enforcement date)
This Decree shall enter into force on February 18, 2022.
ADDENDA <Presidential Decree No. 32455, Feb. 18, 2022>
Article 1 (Enforcement date)
This Decree shall enter into force on February 18, 2022.
ADDENDUM <Presidential Decree No. 33683, Aug. 29, 2023>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 33913, Dec. 12, 2023>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 34314, Mar. 19, 2024>
This Decree shall enter into force on March 29, 2024.
ADDENDA <Presidential Decree No. 34682, Jul. 9, 2024>
Article 1 (Enforcement date)
This Decree shall enter into force on July 17, 2024; provided, the amended provisions of Article 4(1)4 shall enter into force on February 7, 2025.
ADDENDA <Presidential Decree No. 35803, Oct. 1, 2025>
Article 1 (Enforcement date)
This Decree shall enter into force on the date of its promulgation; provided, from among the Presidential Decrees amended pursuant to Article 6 of the Addenda, the amendments to the Presidential Decrees which have been promulgated before this Decree enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Decree.
ADDENDA <Presidential Decree No. 35947, Dec. 30, 2025>
Article 1 (Enforcement date)
This Decree shall enter into force on January 2, 2026; provided, from among the Presidential Decrees amended pursuant to Article 6 of the Addenda, the amendments to the Presidential Decrees which have been promulgated before this Decree enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Decree.