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STATUTES

THE REPUBLIC OF KOREA

Volume

ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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

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

Presidential Decree No. 14566, Apr. 1, 1995

Presidential Decree No. 15328, Mar. 31, 1997

Presidential Decree No. 15569, Dec. 31, 1997

CHAPTER Ⅰ GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Decree is to provide for matters delegated by, and necessary for the enforcement of, the Monopoly Regulation and Fair Trade Act (hereinafter referred to as the “Act”).

Article 2 (Classification of Businesses)

(1) The classification of businesses under each items of subparagraph 1 of Article 2 of the Act shall conform to the Korean Standard Industrial Classification published by the Administrator of the National Statistical Office under Article 17 (1) of the Statistics

Article 1 ~ 2

Act.<Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) “Other businesses specified in the Presidential Decree” provided in subparagraph 1 (m) of Article 2 of the Act means the briquette manufacturing business. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

[This Article Wholly Amended by Presidential Decree No. 13842, Feb. 20, 1993]

Article 3 (Scope of Enterprise Group)

Reference in subparagraph 2 of Article 2 of the Act to “companies the contents of whose business are in fact controlled as set forth in the Presidential Decree” shall be construed to include a company as prescribed in each of the following subparagraphs:

1. A company to which the same person, separately or jointly with another as falling under each of the following items (hereinafter referred to as an “interested person having a relationship with the same person.”), has made the largest contribution by owning not less than thirty percent of the total number of shares issued by such company [including shares, but excluding non-voting shares pursuant to Article 370 (Non-voting Shares) of the Commercial Act. The same shall apply hereinafter]:

(a) A spouse, a blood relative who is in at least eight degrees of kinship, a relative by marriage who is at least

Article 3

a cousin in relationship (hereinafter referred to as “relatives”);

(b) A non-profit juristic person or association (referred to as an unincorporated association or foundation. The same shall apply hereinafter.) to which the same person, separately or jointly with interested persons having relationship with the same person, has made the largest contribution, or which is established by the same person and one of the interested persons having a relationship with the same person;

(c) A non-profit juristic person or association which is subject to dominant influences by the same person, directly or through interested persons having a relationship with the same person with regard to the appointment of directors or officers, or to the operation of businesses;

(d) A company the contents of whose business are in fact controlled by the same person in accordance with the provisions of this subparagraph or subparagraph 2; or

(e) An employee of the same person or persons having relations as falling under items (b) through (d) (referring to directors or officers in cases of a juristic person, or trade employee or employees subject to contract of employment in cases of individuals)

Article 3

2. A company falling under each of the following items and being regarded as exercising significant influences upon the management of the company concerned:

(a) A company of which the representative director is appointed or discharged by, or of which not less than fifty percent of directors or officers have been or can be appointed by contracts or agreements between the same person and other influential shareholders;

(b) A company which is subject to controlling influences by the same person, directly or through interested persons having a relationship with the same person, upon making any principal decisions or conducting services such as institutional changes in the company concerned or investments into new businesses, etc.;

(c) A company which has personnel exchanges falling under any of the following subitems between the company concerned and the company under the control of the same person (including the same person in cases where the same person is a company. The same shall also apply in this item hereinafter.):

(ⅰ) Where the competent company shares directors or officers of a company under the control of the same person;

(ⅱ) Where directors

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or officers of a company under the control of the same person are reinstated to such positions after having been appointed directors or officers of the company (includingcases in which they are reinstated to another company under the control of the same person); or

(ⅲ) Where directors or officers of the competent company are reinstated to such positions of the company or its affiliate company after having been appointed to directors or officers of a company under the control of the same person.

(d) A company which makes transactions of funds, assets, goods, or services, etc. with the same person or interested persons having a relationship with the same person, exceeding an ordinary scope, a company which gives and takes debt guarantees, or other companies which may be recognized as economic entities identified with the same person from the point of common knowledge in a society since the company conducts business activities in a way that it can be considered as an affiliate company of the enterprise group of the same person.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 3-2 (Exclusion from Enterprise Group)

(1) Where it deems that the same person does not control activities or contents of business of a company as falling under each of the following subparagraphs, the Fair Trade Commission, upon the

Article 3-2

request of interested persons, may exclude the company from the scope of enterprise group under the control of the same person, despite the provisions of Article 3:

1. A company which is in fact managed by a person other than each person of the following items in accordance with agreements or contracts made between investors:

(a) A person who has been appointed by the same person; and

(b) A person who has relationships with the same person as falling under subparagraph 1 (a) or (e) of Article 3.

2. A company which satisfies such requirements as provided for in each of the following items (hereinafter referred to as the “criteria for the recognition of independent management”), and which is recognized as managed independently by relatives of the same person:

(a) The aggregate of shares of each company requesting the exclusion from an enterprise group under the control of the same person (hereinafter referred to as “affiliate company of relatives”) which are owned by the same person and interested persons having a relationship with him [excluding a person who performs an independent management of an affiliate company of relatives (hereinafter referred to as the “independent manager”) and a person whom the Fair Trade Commission recognizes,

Article 3-2

upon the request of an independent manager, excluded from the scope of an interested person having a relationship with the same person] shall be less than three percent (ten percent in cases in which the issuing company is not listed on the Stock Exchange) of the total number of shares issued by each company;

(b) The aggregate of shares of each company under the control of the same person (referring to one of the companies belonging to an enterprise group under the control of the same person after excluding affiliate companies of relatives, which shall be referred to as the “affiliate company of the same person” hereinafter) which are owned by independent managers and persons having relations with the independent managers as falling under each item of subparagraph 1 of Article 3 (in cases of an interested person having relations with the same person, he shall be excluded from such scope in accordance with the provisions of item (a) shall be less than three percent(fifteen percent in cases in which the issuing company is not listed as the Stock Exchange) of the total number of shares issued by each company;

(d) There shall not be guaranty of debts, or lending or loaning

Article 3-2

money between affiliate companies of the same person and relatives: Provided, That this shall not apply in cases of guaranty of debts, or lending or loaning money which has been considered to have taken place in normal ways as collateral to transactions; or

(e) The rate of the amount of buy and sell agreements between each affiliate company of the same person and an affiliate company of relatives with reference to the total amount of buy and sell agreements by the former during the period of the most recent one year shall be less than fifty percent. The same shall also apply to the rate of buy and sell agreements between each affiliate company of relatives and an affiliate company of the same person with reference to the total amount of buy and sell agreements by the former.

(2) Where it deems a company operating businesses jointly with the Government, or a local government causes no threat of economic concentration because it satisfies such requirements as falling under each of the following subparagraphs, the Fair Trade Commission, upon the request of interested persons, may exclude such company from the scope of enterprise group under the control of the same person, despite the provisions of Article 3:

1. Where the Government, or a local government shall own not less than twenty percent of the total number of shares issued by

Article 3-2

the company concerned;

2. Where there are no mutual contributions between the company and another;

3. Where the aggregate contribution in other companies shall not exceed twenty five percent of the amount of net assets of the company concerned; or

4. Where the company shall not provide any debt guarantee for other companies.

(3) Where a company which is excluded from the scope of an enterprise group under the control of the same person in conformity with the provisions of paragraph (1) or (2) does not satisfy the requirements for exclusion, the Fair Trade Commission may cancel such decisions excluding the company from such enterprise group: Provided, That a company which is excluded from the scope of an enterprise group under the control of the same person in conformity with the provisions of paragraph (1) 2, this shall only apply to the cases in which it does not satisfy the requirements for exclusion not later than three years after the date of exclusion.

(4) Where an interested person makes a request for the exclusion from an enterprise group under the control of the same person in accordance with the provisions of paragraph (1) 2 above, he shall submit to the Fair Trade Commission audit reports of the company concerned which have been made by an auditor designated by the Securities and Exchange Commission pursuant to the

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provisions of Article 118 of the Securities and Exchange Act (hereinafter referred to as the “ Securities and Exchange Commission”) under the provisions of Article 4-3 of the Act on External Audit of Stock Companies.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 4 (Requirements, etc. for Market-Dominating Enterpriser)

(1) Reference in the text of subparagraph 7 of Article 2 of the Act to “an enterpriser who has conformed to the requirements as determined by the Presidential Decree” shall be construed to include a person who supplies the same or similar kinds of goods or services (hereinafter referred to as “goods or services”) in a market in which the amount of domestic supply of such goods or services for the period of the most recent one-year (referred to as the amount excluding indirect taxes on goods or services. Hereinafter the same shall apply) exceeds one hundred billion won: Provided, That this shall not apply in case of an enterpriser satisfying such requirements as falling under each of the following subparagraphs who the Fair Trade Commission recognizes causes no threat of abusive practices as prescribed in the provisions of Article 3-2:

1. Where he shall supply such goods or services in a market which is sufficiently open and to which market access is not prohibited;

2. Where he has not in fact increased prices for two years prior to the

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dat of dsignation or public notic of markt-dominating enterprisers (hereinafter in this Article referred to as the “date of designation or public notice”) in accordance with the provisions of Article 7 below; and

3. Where he has not been subject to corrective measures against the violation of the provisions of Article 3-2, 19, or 23 (1) 4 for two years prior to the date of designation or public notice.

(2) The term “market share” referred to in Article 2 (9) of the Act shall mean the ratio of the gross domestic supply amount of goods or services of a single enterpriser to the total gross domestic supply of such goods or services.

(3) An enterpriser and its affiliated companies shall be considered as a single enterpriser for the purpose of applying subparagraph 7 of Article 2 of the Act.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

CHAPTER Ⅱ PROHIBITION OF ABUSE OF MARKET-DOMINATING POSITIONS

Article 5 (Criteria for Determination of Unreasonable Price)

(1) Any unreasonable determination, maintenance or change of price as prescribed

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in Article 3-2 (1) 1 of the Act shall mean either of the following: <Amended by Presidential Decree No. 13842, Feb. 20, 1993; Presidential Decree No. 15328, Mar. 31, 1997>

1. The price of specified goods or services has risen significantly or dropped insignificantly for a considerable period without any justifiable reason compared with a fluctuation in demand and supply or in expenses necessary for supply; or

2. The sales expenses and general overhead expenses are excessive without any justifiable reason compared with the ordinary level of the business category to which the market-dominating enterpriser belongs, or any similar one.

(2) If there is a considerable reason to consider that a market-dominating enterpriser has determined, maintained or changed unfairly the price of goods or services, the Fair Trade Commission may require the market-dominating enterpriser to submit the following materials:

1. The statements of profit and loss and the balance sheets for the most recent two years;

2. Data of the cost accounting for determining the price;

3. Import price trend of raw materials and goods;

4. Matters concerning the trend of production, delivery, price, and the

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trad conditions; and

5. Criteria for, and contents of, the apportionment of indirect expenses according to generally accepted accounting principles.

Article 6 (Request for Price Investigation)

If there is a reasonable ground to believe that a market-dominating enterpriser has determined, maintained or changed unfairly the price of goods or services, the Fair Trade Commission may request any investigation on the price of commodities or services by the head of the administrative agency concerned or any public organization carrying out price investigation affairs.

Article 7 (Designation and Public Notice of Market-Dominating Enterprisers)

(1) The Fair Trade Commission shall designate and notify publicly each year the market-dominating enterprisers under Article 4 of the Act every year before the beginning of the following year. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) The Fair Trade Commission may, after designating and notifying publicly market-dominating enterprisers under paragraph (1), additionally designate and notify publicly as market-dominating enterprisers those who satisfy the requirements, or exclude those who no longer satisfy the requirements from the designation

Article 6 ~ 7

and public notice as market-dominating enterprisers, ex officio or upon an enterpriser’s request. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(3) Deleted. <by Presidential Decree No. 13842, Feb. 20, 1993>

Article 8 (Consultation on Publication of Violation of Act)

In ordering the publication of any violation of the Act under Article 5 of the Act, the Fair Trade Commission may have the enterpriser consult in advance with the Commission on the contents thereof. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 9 (Methods for Computing Surcharge)

(1) References in the texts of Articles 6, 22, 24-2, 28 (2), 31-2 and 34-2 to the “turnover determined by the Presidential Decree“ shall mean the amount of average turnover of the enterpriser concerned over the three business years just before the base year (hereinafter referred to as the “amount of base turnover for imposition of surcharge”): Provided, That in cases where three years have not elapsed since the commencement of business at the first date of the business year, the amount of turnover up to the end of a business year just before the year from the commencement of business shall be computed as the amount of yearly average turnover, or in cases where the business has commenced during the current business year, the amount of turnover up to the date of violation of the Act from the date of commencement of business shall be computed as

Article 8 ~ 9

the yearly turnover.

(2) Other matters necessary for the computation of the amount of base turnover for the imposition of surcharge shall be determined by the Fair Trade Commission.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 9-2 (Scope of Enterprisers Using Business Profits)

Reference in the text of Article 6 of the Act to “in the cases of enterprisers as designated by the Presidential Decree” shall be construed to include the cases in which enterprisers enter the aggregate of prices of goods and services in financial statements, etc. as business profits, etc.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 10 (Where No Turnover Exists, etc.)

Reference in the proviso of Article 6 of the Act to “where there is no turnover, or where, subject to the Presidential Decree, it is difficult to compute the turnover” shall be construed to include each of the following cases:

1. Where there are no actual results of business because the business has not commenced or has been suspended, etc.;

2. Where the enterpriser

Article 9-2 ~ 10

refuses to provide materials for computation of the amount of turnover or provides false materials; or

3. Where it is impossible to compute the objective amount of turnover.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

CHAPTER Ⅲ RESTRICTIONS ON COMBINATION OF ENTERPRISES AND CONSTRAINTS ON ECONOMIC POWER CONCENTRATION

Article 11 (Scope of Person with Special Interest)

Reference in the text of Article 7 (1) of the Act to “a person determined by the Presidential Decree as having a special interest” shall be construed to include a company or a person excepting a company, and a person who falls under each of the following subparagraphs:

1. A person who is de facto controlling the company concerned;

2. An interested person having relationship with the same person, except for a person who is separated from him under the provisions of Article 3-2 (1); or

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3. A person who takes part in the combination of enterprises with common interest in controlling management.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 12 (Requirements for Total Value of Assets or Turnover)

(1) References in Articles 7 (4) 2 and 12 (1) of the Act to “the total value of assets” shall be construed to include the total value of assets disclosed on the balance sheet as of the date (referring to the date of establishment in cases of a company which is established during the current business year. The same shall apply hereinafter) of expiration of a business year just before the business year in which the date of the combination of enterprises falls: Provided, That in the case of a company operating banking or insurance services, the total value of the shareholder’s equity or paid-in capital shall be the amount shown on the balance sheet as of the end of a business year just before the base year, whatever is the greater.

(2) In cases of paragraph (1), the total value of assets shall be the sum of the total value of assets shown on the balance sheet as of the end of a business year just before the base year and the increased amount from the total value of assets by issuance of new shares and bonds, or by merger of companies over the business year in which the date of the combination of enterprises falls.

(3) References

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in Articles 7 (4) 2 and 12 (1) of the Act to “turnover” shall be construed to include the turnover shown on a profit and loss statement over the business year just before the business year in which the date of the combination of enterprises falls: Provided, That in cases of a company operating banking or insurance services, turnover shall be referred to as business profits shown on a profit and loss statement over a business year just before the base period.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 12-2 (Requirements for Larger Company)

Reference in Article 7 (4) 2 of the Act to “a company satisfying such requirements as provided for in the Presidential Decree” shall be construed to include a company of which the total value of assets or turnover exceeds two thousand billion won.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 13 (Requirements for Combination of Enterprises for Industrial Rationalization)

Any combination of enterprises for the industrial rationalization under the proviso of Article 7 (Restrictions on Combination of Enterprises) (1) of the Act may be allowed only when it meets any of the following requirements: <Amended by Presidential Decree

Article 12-2 ~ 13

No. 15328, Mar. 31, 1997>

1. Where a reorganization of the industrial structure and organization is inevitable for the purpose of enhancing the efficiency of industrial activities and rationalizing the management;

2. Where a large amount of funds is needed for the investment in and operation of equipment, but the raising of such funds is difficult by any ordinary means; and

3. Where it is required for the public interest.

Article 14 (Requirements for Combination of Enterprises for Strengthening International Competitiveness)

Any combination of enterprises for strengthening the international competitiveness under the proviso of Article 7 (Restrictions on Combination of Enterprises) (1) of the Act may be allowed only when it meets any of the following requirements: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Where it significantly improves the international competitiveness in aspects of the price and quality through promotion of technology development, obtaining proper scale of operation, and so on; and

2. Where it significantly contributes to the increase of exports by promoting the industrial activities such as the collection of

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information at overseas markets, or sales activities, etc.

Article 15 (Scope of Holding Company)

The holding company as prescribed in Article 8 (Prohibition of Establishment of Holding Company) of the Act shall be a company in which the total book value on the balance sheet of shares owned for the purpose of dominating the businesses of other companies accounts for fifty percent or more of its total assets: Provided, That the foregoing shall not apply to cases where the Fair Trade Commission deems that it is not its principal business to dominate the businesses of other companies after taking into consideration the scale, object, and ratio of capital investment. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 16 (Approval of Establishment of Holding Company for Foreign-Invested Projects)

(1) Any person who wishes to obtain an approval on the establishment of, or the conversion into, a holding company under subparagraph 2 of Article 8 (Prohibition of Establishment of Holding Company) (2) of the Act, shall submit to the Fair Trade Commission an application specifying the following matters before he subscribes for shares of the holding company which he wishes to establish, or he converts into a holding company: Provided, That this shall not apply in case where he has filed a report on a combination of enterprises under Article 12 (Report on Merger of Companies) of the Act: <Amended by Presidential

Article 15 ~ 16

Decree No. 15328, Mar. 31, 1997>

1. Nature of the foreign-invested projects which he wishes to operate;

2. Name or title of the person expected to subscribe for shares (in cases of conversion into a holding company, the names of the company and its shareholders);

3. Subscription amount and subscription ratio (in cases of conversion into a holding company, the shareholding ratio of its shareholders);

4. Nature of the business operated by the person expected to subscribe for shares (in cases of conversion into a holding company, the nature of the business of the company which he wishes to convert); and

5. Reason why he established the holding company (in cases of conversion into a holding company, the reason for conversion).

(2) If any change occurs in the content of the application as referred to in paragraph (1), the person who obtained an approval on the establishment of, or conversion into, a holding company, shall report the details of change to the Fair Trade Commission within thirty days after the cause of the change occurs.

Article 17 (Scope of Large Enterprise Group and Large Enterprise Group Subject to Restrictions on Debt Guarantee)

Article 17

(1) The large enterprise group as prescribed in Article 9 (Prohibition, etc. of Purchase of Shares of Affiliated Companies) (1) of the Act shall be such an enterprise group as the ranking in the total assets (in case of companies which operate the financing and insurance businesses, the total capital or the capital, whichever is larger, and in case of a new company and having no balance sheet for the immediately preceding business year, the paid-in capital as of the designated day) on the balance sheet in the business year immediately before the companies based in the Republic of Korea belonging to the enterprise group are designated as large enterprise group, is the 1st to the 30th, excluding the enterprise groups the share ownership diversification and financial structure of which are sound (hereinafter referred to as the “sound ownership-diversified enterprise group”): Provided, That in determining those, the ranking of the total assets which fall under the 1st to the 30th, the following ones are excluded: <Amended by Presidential Decree No. 13842, Feb. 20, 1993; Presidential Decree No. 14566, Apr. 1, 1995; Presidential Decree No. 15328, Mar. 31, 1997>

1. Enterprise groups which operate only financing and insurance businesses;

2. Enterprise groups in cases where the company operating the financing and insurance businesses is the same person as prescribed in subparagraph 2 of Article 2 (Definition) of the Act;

3. Enterprise

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groups in cases where the government-invested institution as prescribed in Article 2 (Scope of Application) of the Framework Act on the Management of Government-Invested Institutions is the same person as prescribed in subparagraph 2 of Article 2 (Definition) of the Act;

4. Enterprise groups in cases where the public corporation as prescribed in Article 199 (Restrictions on Solicitation of Exercise by Representative of Voting Power) (2) of the Securities and Exchange Act is the same person as prescribed in subparagraph 2 of Article 2 (Definition) of the Act; and

5. Enterprise groups which the Fair Trade Commission deemed unnecessary to designate as large enterprise groups, because a procedure for the reorganization of a company belonging to the enterprise group concerned, is in progress according to the decision of the court on the commencement of reorganization procedures as prescribed by the Company Reorganization Act.

(2) For the purpose of paragraph (1), the term “sound ownership-diversified enterprise group” means the enterprise group satisfying the following requirements: <Newly Inserted by Presidential Decree No. 14566, Apr. 1, 1995; Presidential Decree No. 15328, Mar. 31, 1997>

1. The same person or persons having relations as falling under subparagraph 1 (a) through (c) or (e) of Article 3 (Scope of Group

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Company) shall own shares accountable for less than five percent of the aggregate amount of paid-in capital of a company which is an affiliate company of the enterprise group: Provided, That where the same person is a company, shares owned by the same person shall be excluded;

1-2.The same person or persons having relations with him shall own shares accountable for less than twenty-five percent of the aggregate amount of paid-in capital of a company which is an affiliate company of the enterprise group;

2. The sum of the equity capital of the companies belonging to the enterprise group concerned shall exceed twenty percent of the sum of the total assets; and

3. The sum of the capital of the corporations whose shares are listed, belonging to the enterprise group concerned, is more than sixty percent of the sum of the capital of the companies belonging to the enterprise group concerned.

(3) Subject to requirements set forth by the Fair Trade Commission, an enterprise group wishing to be recognized as one of the sound ownership-diversified enterprise group shall submit to the Fair Trade Commission an application containing the current state of share ownership and financial structure of its member companies, together with documents showing financial status, such as consolidated financial statements of all the member companies,

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etc. and contents of transactions. (audit results by a certified public accountant or a certified public accountant firm pursuant to the provisions of the Certified Public Accountant Act shall be contained) <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(4) The large enterprise group subject to restrictions on debt guarantee as prescribed in Article 10-2 (Restrictions on Debt Guarantee of Affiliated Companies) (1) of the Act shall be the large enterprise group as referred to in paragraph (1). <Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993; Presidential Decree No. 15328, Mar. 31, 1997>

Article 17-2 (Requirements for Contribution to Reinforce International Competitiveness of Industry)

For the purpose of subparagraph 5 of Article 10 (Restrictions on Aggregate Contributions) (1) of the Act, the term “where it is required for a contribution to maintain a technical cooperative relation with small and medium enterprises producing parts and for reinforcing the international competitiveness of the industry as designated by the Presidential Decree” means any of the following cases: <Amended by Presidential Decree No. 14566, Apr. 1, 1995; Presidential Decree No. 15328, Mar. 31, 1997>

1. Where a company acquires or owns shares of small and medium enterprises not exceeding twenty percent of the total number of issued shares so as to provide technical assistance and to maintain cooperative relations with the small and medium

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enterprises which produce or supply materials or parts, or so as to transfer some of its businesses to the small and medium enterprises which are not one of its affiliate companies, for the purpose of making arrangements in its industrial structures;

2. Where a company carrying on categories of business related to another company acquires or owns shares issued by such company established for the purpose of a joint development or introduction of the technology which is requisite to improve the competitiveness of the domestic industry, but it is difficult to develop independently in Korea or it is inevitable that it be introduced from a foreign country, and it is requested by the competent Minister; and

3. Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>

[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]

Article 17-3 (Application for Recognition of Investment Related to Social Overhead Capital Facilities)

If a company belonging to a large enterprise group wishes to have any investment recognized as the acquisition or ownership of the shares which is excluded from the restriction on the total investment under Article 10 (Restrictions on Aggregate Contributions) (2) of the Act, it may file an application stating the contents

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of investment, etc. with the Fair Trade Commission, together with documents necessary for attesting to such contents. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

[This Article Newly Inserted by Presidential Decree No. 14566, Apr. 1, 1995]

Article 17-4 (Requirements for and Confirmation of Sound Ownership-Diversified Company)

(1) Reference in Article 10 (Restrictions on Aggregate Contributions) (3) to “a company satisfying requirements such as shares of stock ownership, financial structures, etc. as provided for in the Presidential Decree” shall be construed as a company with listed stocks which satisfies each requirement of the following subparagraphs. (hereinafter referred to as the “sound ownership-diversified company”):

1. The aggregate of shares of the company owned by the same person or persons having relations as falling under subparagraph 1 (a) through (c) or (e) of Article 3 (Scope of Enterprise Group) shall be less than five percent of the total number of issued shares of the company: Provided, That where the same person is a company, shares owned by him shall be excluded;

2. The aggregate of shares of the company owned by the same person or persons having relations with him shall be less than twenty percent of the total number of issued shares of the

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company; and

3. The owner’s equity shall be not less than twenty-five of the total value of assets.

(2) Subject to requirements as set out by the Fair Trade Commission, a person wishing to be recognized as one of the sound ownership-diversified companies shall submit to the Fair Trade Commission an application containing the current state of stock ownership and financial structures of his company, together with audit reports which have been formulated by an auditor designated by the Securities and Exchange Commission under the provisions of Article 4-3 (Designation, etc. by the Securities and Exchange Commission of Auditors) of the Act on External Audit of Stock Companies.

[This Article Wholly Amended by the Presidential Decree No. 15328, Mar. 31, 1997]

Article 17-5 (Requirements for Exemption from Restriction on Debt Guarantee)

(1) For the purpose of subparagraph 1 of Article 10-2 (Restrictions on Debt Guarantee of Affiliated Companies) (1) of the Act, the term “guarantee made in connection with any debt of a company, which is taken over ...” means any of the following cases: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Any guarantee made by a company taking over another company or its

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affiliated company for any debt of, or expected to be taken over by, a company transferred by means of transfer of stocks or merger, which is outstanding at the time of the transfer; and

2. Any guarantee made by an affiliated company for any debt taken over in compliance with a divided transfer of debt of the transferred company.

(2) For the purpose of subparagraph 3 of Article 10-2 (Restrictions on Debt Guarantee of Affiliated Companies) (1) of the Act, the term “debt guarantee in cases where it is required for reinforcing the international competitiveness of enterprises, and it is prescribed by the Presidential Decree” means any of the following cases: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Guarantee for any loan made by the Export-Import Bank of Korea to support funds needed in the process of producing capital goods and other commodities or providing techniques under subparagraphs 1 and 2 of Article 18 (General Functions) (1) of the Export-Import Bank of Korea Act, or any loan made by other domestic financial institutions in connection with it;

2. Guarantee for any tender bond, contract fulfillment guarantee, advance refund guarantee, reserve repayment guarantee, defect mending guarantee or tax payment guarantee made by a domestic financial institution in connection with an execution of construction and industrial facility works outside

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Korea, construction of ships for export, export of services and other export goods recognized by the Fair Trade Commission;

3. Guarantee for funds assisted by domestic financial institutions for facilities to industrialize new domestic technology or introduce new ones and to develop technology, and technical development projects, such as purchase of machinery and materials, etc.;

4. Guarantee for purchasing by domestic financial institutions of export bills on the condition of delivery against acceptance or payment, and opening of a local letter of credit;

5. Guarantee of credit lent or loaned by overseas branches of domestic banking institutions with regard to such businesses as falling under each of the following items:

(a) Foreign direct investment pursuant to the provisions of the Foreign Exchange Control Act;

(b) Overseas construction or service projects performed by contractors of overseas construction and services; or

6. Guarantee directly involved with the acquirement by a third party of

Article 17-5

a company which has requested the courts to commence reorganization processes of the company in accordance with the Company Reorganization Act.

[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]

Article 17-6 (Scope of Domestic Financial Institution)

For the purpose of Article 10-2 (Restrictions on Debt Guarantee of Affiliated Companies) (2) 6 of the Act, the term “other financial institutions as prescribed by the Presidential Decree” means any specialized credit finance company as prescribed by the Specialized Credit Financial Business Act. <Amended by Presidential Decree No. 15328, Mar. 31, 1997; Presidential Decree No. 15569, Dec. 31, 1997>

[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]

Article 18 (Report on Merger of Companies, etc.)

(1) “A company having a level of total value of assets or turnover (referred to as the “level of the aggregate of total value of assets or turnover of affiliated companies”) determined by the Presidential Decree” referred to in the text of Article 12 (Report on Merger of Companies) (1) of the Act means a company of which the total value of assets or turnover amounts to a thousand billion won or more.

(2) Subject to requirements as set out by the Fair Trade Commission, a person

Article 17-6 ~ 18

filing a report pursuant to the provisis of Article 12 (Report on Merger of Companies) (1) of the Act shall submit to the Fair Trade Commission the report containing the name of a person responsible for filing such reports, the denomination, turnover, total value of assets, contents of businesses of a company taking part in the merger of companies, contents of the merger of companies, current state of relevant markets, etc, together with relevant documents necessary for providing the contents of reports.

(3) Where it deems a submitted report or documents accompanied therewith in accordance with the provisions of paragraph (2) insufficient, the Fair Trade Commission may make orders for the amendment and completion of the documents by setting time-limits. In such cases, a period of time for amendment and completion (including the dates on which orders for amendment and completion have been sent and on which amended and completed documents have arrived at the Fair Trade Commission) shall not be included within the period computed in conformity with Article 12 (Report on Merger of Companies) (5) and (7).

(4) Reference in the text of Article 12 (Report on Merger of Companies) (1) of the Act to “in the case of ownership of not less than twenty percent (not less than fifteen percent in the case of a juristic person with listed stocks)” shall be construed to include the cases in which the ownership of less than twenty percent (less than fifteen percent in the case of a juristic person with listed stocks. The same shall apply in this paragraph, hereinafter.) changes into that of not less than twenty

Article 18

percent.

(5) Reference in the text of Article 12 (Report on Merger of Companies) (4) of the Act to “the date of merger of companies” shall be construed to include each date of the following subparagraphs:

1. Each date of the following items in cases in which shares of other companies have been acquired:

(a) In cases of taking of shares of a corporation, the date on which a certificate of stock is delivered: Provided, That a certificate of stock is not issued, the date on which the payment of stocks is made;

(b) In cases of purchase of new stocks of a corporation, the following day of the date on which the payment of stocks is due; or

(c) In cases of taking of shares of a company other than a corporation or joint-stock company, the date on which transfer of shares takes effect.

2. In the occurrences of sharing of directors or officers, the date on which the appointment of such directors or officers is determined at general meetings of stock-holders or employees of a company of which directors or officers are shared;

3. In the event

Article 18

of aking of businesses, he dae on which a sum of money for taking the businesses is paid up: Provided, That a sum of money for taking the businesses is paid up after the expiry of ninety days from the date of conclusion of contracts;

4. In the event of merger with other companies, the date on which such merger of companies is registered; or

5. In the event of participation in the establishment of a new company, the following day of the date on which the payment of allocated stocks is due.

(6) In the event of significant changes in matters of reports by the date of registration of the merger of companies, of transfer of businesses, or of establishment of a company after the date of report, larger companies or monopolists which have filed reports in accordance with the provisions of the proviso of Article 12 (Report on Merger of Companies) (4) of the Act shall file reports with regard to such significant changes.

(7) In the event of registration of the merger of companies, of transfer of businesses, or of establishment of a company, larger companies or monopolists which have filed reports in accordance with the proviso of Article 12 (Report on Merger of Companies) (4) of the Act shall notify, within thirty days, the Fair Trade Commission of such events.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar.

Article 18

31, 1997]

Article 19 (Designation, etc. of Representative for Report of Enterprise Combination)

(1) A person who wishes to be designated as an agent in accordance with the provisions of Article 12 (Report on Merger of Companies) (8) of the Act shall submit to the Fair Trade Commission an application containing the denomination, total value of assets, turnover, etc. of his company. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) In the event of the designation of a representative upon the request pursuant to the provisions of the above paragraph (1), the Fair Trade Commission shall notify the representative thereof. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 20 (Report on Shareholding Situation, etc.)

(1) Any person who wishes to make a report under Article 13 (1) of the Act, shall submit to the Fair Trade Commission a report specifying the following matters not later than the end of April in each year: Provided, That where a company is designated as such belonging to a large enterprise group, it shall file reports within thirty days from the date of notice of designation pursuant to the provisions of Article 21 (2) in that year in which such designation is made: <Amended by Presidential Decree No. 13842, Feb. 20, 1993; Presidential Decree No. 15328, Mar. 31, 1997>

Article 19 ~ 20

1. Outline of the company, such as the title, capital, total amount of assets, etc. of the company;

2. Number of shares issued by the company, which are held by the affiliated companies and by those who have special relation; and

3. Net amount of assets, ceiling amount of contribution and total contribution of the company.

(2) The report as referred to in paragraph (1) shall be accompanied by the following documents:

1. Detailed statement of shares held by the company;

2. Table showing the current status of mutual contribution with affiliated companies; and

3. Business report, balance sheet and statement of profit and loss in the immediately preceding business year of the company and written audit opinion of the certified public accountant.

(3) If there is any change falling under any of the following subparagraphs under Article 13 (1) of the Act, the company belonging to a large enterprise group shall file a report stating the contents of such change, with the Fair Trade Commission, within thirty days after the change has taken place: Provided, That in cases as falling under the below subparagraph 3, a company

Article 20

designated as a representative in accordance with the provisions of Article 19 shall file the reports. This paragraph shall not apply to the cases in which reports on the merger of companies pursuant to the provisions of Article 12 of the Act have been made: <Newly Inserted by Presidential Decree No. 14566, Apr. 1, 1995>

1. Where there is any change in the situation of ownership, etc. after obtaining the recognition as a case of acquisition or ownership of stocks of a company incorporated to carry on the class A facilities business as prescribed in subparagraph 2 of Article 2 of the Promotion of Private Capital into Social Overhead Capital Investment Act;

2. Where there is an important change in the requirements as prescribed in Article 17-4 (1) due to the acquisition of stocks or the issue of new stocks to be purchased, after selected as a sound ownership-diversified company; and

3. Where there is a change in companies under the control of the enterprise group in view of the scope of the enterprise group as prescribed in Article 3, due to the incorporation of company, or acquisition of stocks, etc.

Article 20-2 (Report on Actual Statement of Debt Guarantee)

(1) Any person who makes a report as prescribed in Article 13 (2) of the Act, shall submit to the Fair Trade Commission a report specifying the following matters until April 30 of every year: Provided,

Article 20-2

That in cases of one of the affiliate companies of an enterprise group which is newly designated as a larger enterprise group, the company shall file a report within thirty days from the date of notification pursuant to the provisions of Article 21 (Designation of Larger Enterprise Group, etc.) (2) for the designated year: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Summary of the company, such as the title, capital, total assets, etc.; and

2. Equity capital, debt guarantee ceiling, total debt guarantee and total debt guarantee assumed by the company.

(2) The report as referred to in paragraph (1) shall be accompanied by the following documents:

1. Statement of debt guarantee by the company for its affiliated company; and

2. Debt guarantee statement which the company received from its affiliated company.

(3) If a domestic financial institution as prescribed in Article 10-2 (2) of the Act confirms whether a report as referred to in paragraph (1) [including appended documents as referred to in paragraph (2)] submitted to the Fair Trade Commission is true or not, it shall do in conformity with the form as determined by the Fair Trade Commission. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 20-2

[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]

Article 21 (Designation of Large Enterprise Group, etc.)

(1) The Fair Trade Commission shall designate once each year any enterprise group which meets the criteria as prescribed in Article 17, as a large enterprise group under Article 14 (1) of the Act or if an enterprise group designated as a large enterprise group becomes nonconforming to such criteria, it shall be excluded from the designation as a large enterprise group. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) In cases where the Fair Trade Commission designates any enterprise group as a large enterprise group or excludes it from such designation under paragraph (1), it shall notify in writing the companies belonging to the large enterprise group and the same person actually dominating the details of the business of companies belonging to the large enterprise group under subparagraph 2 of Article 2 of the Act. This provision shall also apply when any change occurs in companies belonging to the large enterprise group. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(3) If there is any change in the company belonging to the large enterprise group after the designation and notification as referred to in paragraphs (1) and (2) is made, the Fair Trade Commission shall notify in writing once each month to the same person and the company concerned. <Newly Inserted by Presidential

Article 21

Decree No. 13842, Feb. 20, 1993>

(4) Where a company is not designated and notified as a member company of a larger enterprise group on the grounds that a person before whom a request has been made in accordance with the provisions of Article 14 (Designation of Larger Enterprise Group, etc.) (4) refuses to provide materials without reasonable causes, or provides false materials, the Fair Trade Commission shall recognize that the company has been designated and notified as a member company of the larger enterprise group on the date determined in accordance with the classification as falling under each of the following subparagraphs: <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>

1. In cases in which a company should have been designated and notified as a member company of the larger enterprise group at the time of designation of a larger enterprise group, the date of designation of the larger enterprise group; or

2. In cases in which a company should have been designated and notified as a member company of the larger enterprise group after the designation of a larger enterprise group, the first day of the following month of the month in which there occurs the grounds on which the company shall be included in the larger enterprise group.

(5) The provisions of paragraphs (1) through (4) shall be applicable mutatis mutandis to the designation and notification of an enterprise

Article 21

group subject to restrictions on debt guarantee as prescribed in Article 14 (1) of the Act. In this case, the term “large enterprise group” shall be considered as “large enterprise group subject to restrictions on debt guarantee”. <Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993;Presidential Decree No. 15328, Mar. 31, 1997>

Article 21-2 (Scope of Competent Authorities)

Reference in subparagraph 4 of Article 14-3 (Requests for Confirmation of Documents before Competent Authorities) of the Act to “other institutions determined by the Presidential Decree” shall be construed to include an institution engaged in services of changing names of shares registered in the records of a corporation on behalf of customers in conformity with the Securities and Exchange Act, and a central agency for reporting credit information pursuant to the provisions of subparagraph 5 of Article 2 (Definition) of the Use and Protection of Credit Information Act.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 21-3 (Categories of and Standards for Unlawful Practices)

(1) References to unlawful practices prohibited by the provisions of Article 15 (Prohibition of Unlawful Practices) (1) of the Act shall be construed to include each practice of the following subparagraphs:

1. Practices by

Article 21-2 ~ 21-3

a larger enterprise group, subject to the provisions of subparagraph 2 of Article 7 (Restrictions on Merger of Companies) (4) of the Act, which falls within each of the following items in ways other than merger of companies, such as manipulating inside functions of the company, and cause ipso facto restrictions on competition in a particular trade on the grounds of practices as falling under each of the following items:

(a) Where the market share of the company comes to satisfy the following standards on account of such practices:

(ⅰ) The market share of the company shall satisfy standards for monopolists;

(ⅱ) The market share of the company shall be the largest in the trade; or

(ⅲ) The market share of the company shall exceed that of a company with the second largest market share by not less than twenty-five percent.

(b) Where, on account of such practices, the market share of the company amounts to not less than five percent in a trade in which the market share of a small or medium sized company amounts to not less than two-thirds in conformity with the Framework Act on Small and Medium Enterprises; and

Article 21-3

th company taks part in th production of goods or services which are demanded in large quantity.

2. Practices by a non-profit corporation or association whose main purposes are to control activities or contents of businesses of a domestic company through ownership of stocks; and

3. Other like or similar practices as falling under subparagraph 1 or 2, which are determined and notified by the Fair Trade Commission.

(2) In cases of the existence of necessities of detailed standards for the application of the provisions of paragraph (1) 1, the Fair Trade Commission shall determine and notify them. In such cases, the Fair Trade Commission shall in advance seek views from the head of competent administrative authority.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 22 (Application of Provisions concerning Consultation on Publication of Violation of Act)

The provisions of Article 8 shall be applicable to the publication of violations of the Act as prescribed in Article 16 (1) of the Act. In these cases, the term “Article 5 of the Act” in Article 8 shall be considered as the term “Article 16 (1) of the Act”.

Article 22

Article 23 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>

Article 23-2 (Criteria for Designation of Shares without Voting Rights)

If the Fair Trade Commission wishes to designate shares which are unable to exercise voting rights under Article 18 (4) of the Act, it shall designate shares equivalent to the amount to be disposed of in the following order: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Newly acquired shares in violation of the provisions of Article 10 (1) of the Act;

2. Shares acquired in the most recent days as of the day on which the violation is committed; and

3. Shares in an affiliated company.

[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]

CHAPTER Ⅳ RESTRICTION ON UNFAIR COLLABORATIVE ACTS

Article 23 ~ 23-2

Article 24 (Requirements for Approval of Collaborative Acts)

Reference in the text of Article 19 (Prohibition of Unfair Collaborative Acts) (2) of the Act to “requirements as provided for in the Presidential Decree” shall be construed to include requirements as prescribed in the provisions of Articles 24-2 (Requirements for Approval of Collaborative Acts for Industrial Rationalization) through 28 (Requirements for Approval of Collaborative Acts for Improvement of Competitiveness of Small andMedium Sized Companies).

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 24-2 (Requirements for Collaborative Acts for Industrial Ration-alization)

The authorization of a collaborative act for the industrial rationalization as prescribed in subparagraph 1 of Article 19 (Prohibition of Unfair Collaborative Acts) (2) of the Act may be granted only when the collaborative act satisfies the following requirements: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Where the effect of technical advancement, quality improvement, cost curtailment, efficiency promotion, etc. by the collaborative act is obvious;

2. Where it is difficult to attain the industrial rationalization through

Article 24 ~ 24-2

any way other than the collaborative act; and

3. Where the effect of industrial rationalization is greater than that to prohibit any restriction on competition.

Article 24-3 (Requirements for Collaborative Act for Research and Technical Development)

Any authorization of a collaborative act for research and technical development as prescribed in the subparagraph 2 of Article 19 (Prohibition of Unfair Collaborative Acts) (2) of the Act shall be granted only when it conforms to the following requirements: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Where such research and technical development is requisite for the reinforcement of industrial competitiveness, and might give a fArreaching effect on the economy;

2. Where the investment needed for such research and technical development is so excessive that a single enterpriser will have difficulty procuring it;

3. Where it is required for diversification of risks due to the uncertainty of the result of such research and technical development; and

4. Where the effect of such research and technical development is greater than that of the prohibition of restriction on competition.

Article 24-3

[This Article Newly Inserted by Presidential Decree No. 13842, Feb. 20, 1993]

Article 25 (Requirements for Collaborative Acts to overcome Depression)

The authorization of any collaborative act to overcome the depression under the proviso of Article 19 (1) of the Act, may be granted only when the collaborative act meets the following requirements: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Where a state that the demand for specified goods or services continues to be reduced for a considerable period, and the supply exceeds considerably the demand, and where such state is obviously going to continue in the future;

2. Where the market price of the goods or services remains below the average production costs for a considerable period;

3. Where a considerable number of enterprises in the business field might find it difficult to continue business activities due to the depression; and

4. Where matters as referred to in subparagraphs 1 through 3 are unable to be overcome through a rationalization of enterprise.

Article 25

Article 26 (Requirements for Collaborative Acts to Adjust Industrial Structure)

The authorization of any collaborative act to adjust the industrial structure under the proviso of Article 19 (1) of the Act shall be granted only when the joint act meets the following requirements: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Where the supply capability of any specified industry is remarkably in an excessive state due to changes in economic conditions at home and abroad, or where the production efficiency or international competitiveness shows a noticeable drop due to falling behind of the equipment and methods of the production;

2. Where matters as referred to in subparagraph 1 are unable to be overcome by the rationalization of enterprises; and

3. Where the effect obtained by the adjustment of the industrial structure is greater than that obtained by the prohibition of any restriction on competition.

Article 27 (Requirements for Approval of Collaborative Acts for Modernization of Trading Conditions)

Approval of collaborative

Article 26 ~ 27

acts for modernization of trading conditions under the provisions of subparagraph 5 of Article 19 (Prohibition of Unfair Collaborative Acts) (2) of the Act shall be made only in the cases in which such collaborative acts satisfy requirements as falling under each of the following subparagraphs:

1. Where modernization of trading conditions contributes significantly to improving productivity, facilitating transactions, and enhancing conveniences or interests of the consumer;

2. Where the contents of modernization of trading conditions are accessible, in technical or economic terms, to most undertakers in the trade; or

3. Where the modernization of trading conditions rather than the prohibition of competition is expected to give rise to the greater effects.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 28 (Requirements for Collaborative Acts to Improve Competitiveness of Small and Medium Enterprises)

The authorization of any collaborative act to improve the competitiveness of the small and medium enterprises under the provision of Article 19 (2) 6 of the Act may be granted only when the collaborative act meets the following requirements: <Amended by

Article 28

Presidential Decree No. 15328, Mar. 31, 1997>

1. Where the effect of the collaborative act on the improvement of productivity, such as improvement of the quality, know-how, etc. of the small and medium enterprises, or the strengthening of the bargaining power on the trading conditions, is obvious;

2. Where all the participating businessmen are the small and medium enterprisers; and

3. Where it is difficult to compete efficiently with, or oppose large enterprises by means other than any collaborative act.

Article 29 (Limit on Authorization of Collaborative Acts)

Notwithstanding the provisions of Articles 24-2 through 28, if a collaborative act falls under any of the following subparagraphs, the Fair Trade Commission may not authorize it: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Where it might exceed the degree necessary for achieving its objective;

2. Where it might unfairly infringe the interests of consumers and related enterprisers;

3. Where any unfair discrimination exists in contents of the collaborative

Article 29

act among enterprisers participating in it; and

4. Where the participation in or withdrawal from the collaborative act is restricted unfairly.

Article 30 (Request, etc. for Authorization of Collaborative Acts)

(1) Any person who wishes to obtain an authorization of any collaborative act under the provision of Article 19 (2) of the Act, shall submit to the Fair Trade Commission a request specifying the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Number of participating enterprisers;

2. Names of participating enterprisers and seats of business places;

3. Addresses and names of the representative and officers;

4. Reason why he wishes to act jointly and particulars thereof;

5. Period in which he wishes to act jointly; and

6. Details of businesses conducted by the participating enterpriser.

(2) The following

Article 30

documents shall be attached to the request as referred to in paragraph (1): <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Summary of Business Achievement, balance sheet and statement of profit and loss of the participating enterpriser for the most recent two years;

2. Copy of the agreement or resolution of the collaborative act;

3. Documents attesting that the collaborative act conforms to the requirements for authorization; and

4. Documents attesting that the collaborative act is corresponding to the provisions of Article 29.

(3) In cases where the Fair Trade Commission receives a request as referred to in paragraph (1) and authorizes it, the Commission shall deliver a certificate of authorization to the requesting person.

(4) If a person who obtained the authorization of the collaborative act wishes to modify authorized matters, he shall request such modification to the Fair Trade Commission with the documents as referred to in paragraphs (1) and (2), which are related to modified matters accompanied by the certificate of authorization.

(5) Where it receives a request for approval pursuant to the provisions of

Article 30

Article 19 (Prohibition of Unfair Collaborative Acts) (2) of the Act, the Fair Trade Commission shall make a determination, within thirty days [in the case of notification pursuant to the provisions of Article 31 (Notification of Subjects of Request for Approval of Collaborative Acts), the period computed by aggregating thirty days and the period of notification] after receipt of such request, as to whether or not to grant approval. <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>

Article 31 (Public Notice on Details of Request for Authorization of Collaborative Acts)

(1) The Fair Trade Commission, where it deems necessary, may invite interested persons to present their views prior to the granting of approval in accordance with the provisions of Article 19 (Prohibition of Unfair Collaborative Acts) (2) of the Act by giving public notice with regard to the subjects of the request. This paragraph shall also apply to changes in subjects of approval. <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>

(2) If particulars of a request for authorization or modification of a collaborative act are notified publicly by the Fair Trade Commission under Article 20 (2) of the Act, the particulars of public notice shall include the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Name and address of the requesting enterpriser;

Article 31

2. Details of the collaborative act;

3. Reason why it wishes to act jointly;

4. Period in which it wishes to act jointly; and

5. In case of a request for modification, the modified matters in the particulars of the initial authorization and the reason thereof.

(3) In making the public notice as referred to in paragraph (1), the period of such notice shall be made within thirty days. <Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997>

(4) Any interested person who has any opinion on the details of the public notice as referred to in paragraph (2), may submit to the Fair Trade Commission a written opinion specifying the following matters within the period of public notice: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Name or title and address of the person stating the opinion;

2. Contents of opinion and the reason for presenting such opinion; and

3. Other matters necessary for stating the opinion.

Article 31

Article 32 (Report on Actual Performance of Collaborative Acts)

(1) Except in cases where the Fair Trade Commission deems it to be required especially, the enterpriser who has obtained the authorization of the collaborative act under the proviso of Article 19 (2) of the Act (hereinafter referred to as the “authorized enterpriser of collaborative acts”), shall submit to the Fair Trade Commission a report specifying the following matters every six months: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Actual results of delivery by the participating enterpriser;

2. Trend of price by the processes of delivery and distribution;

3. Demand and supply, and situation of facility operation; and

4. Other matters which the Fair Trade Commission determines as an incidental condition at the time of authorization of the collaborative act.

(2) If any enterpriser withdraws from the collaborative act, the authorized enterpriser of collaborative acts, shall report it without delay to the Fair Trade Commission. This provision shall also apply in case where the joint act is abolished.

(3) The authorized enterpriser of collaborative acts may appoint a representative

Article 32

among the participating enterprisers and have him make the reports as referred to in paragraphs (1) and (2). In this cases, he shall report in advance it to the Fair Trade Commission.

Article 33 (Application of Provisions concerning Consultation on Public Notice of Violation of Act)

The provisions of Article 8 shall be applicable to a publication of any violations of the Act as prescribed in Article 21 of the Act. In these cases, the term “Article 5 of the Act” used in Article 8 shall be considered as the term “Article 21 of the Act”. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 34 Deleted. <by Presidential Decree No. 14566, Apr. 1, 1995>

Article 35 (Reduction or Exemption for Those who Filed Reports)

Reductions or exemptions for those who filed reports in accordance with the provisions of Article 22-2 (Exemptions for Those Who Filed Reports) (2) of the Act shall be allowed only if each requirement of the following subparagraphs is satisfied:

1. Where reports are filed with the Fair Trade Commission in the circumstances where it has no information on the unfair collaborative acts concerned, or in which it fails to collect sufficient evidences even with information on the unfair

Article 33 ~ 35

collaboative acts concened;

2. Where a person from among those who jointly conducted the unfair acts concerned has filed reports first, provided evidence necessary for the existence of such unfair acts, and remained cooperative until investigations are finished; or

3. Where a person who filed reports has not taken a leading role in jointly conducting the unfair acts, and has not demanded others to undertake to hold jointly participate in the unfair acts.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

CHAPTER Ⅴ PROHIBITION OF UNFAIR TRADE PRACTICES

Article 36 (Designation of Unfair Trade Practices)

(1) Categories or standards of unfair trade practices in accordance with the provisions of Article 23 (Prohibition of Unfair Trade Practices) (2) of the Act shall be as set out in the Appendix.

(2) The Fair Trade Commission, where it deems necessary, may determine and notify details for the application of categories or standards of unfair trade practices pursuant to the provisions of the

Article 36

abov paragraph (1) to a spcifid ara or practic. In such cases, the Fair Trade Commission shall seek in advance views from the head of the competent administrative authority.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 37 (Fair Competition Code)

(1) If the Fair Trade Commission receives a request for review on a fair competition code under Article 23 (5) of the Act, it shall notify the result of the review to the requesting person within sixty days after it receives the request for review. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) If it is deemed necessary, the Fair Trade Commission may require any enterpriser or enterprisers organization enforcing a fair competition code to report the enforcement situation of the code.

Article 38 (Consultation on Correcting Advertisement, etc.)

In ordering a publication of any correcting advertisement or violation of the Act as prescribed in Article 24 of the Act, the Fair Trade Commission may have the enterpriser consult in advance with the Fair Trade Commission on the contents thereof. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 38-2 Deleted. <by Presidential Decree No. 15328, Mar. 31,

Article 37 ~ 38-2

1997>

CHAPTER Ⅵ ENTERPRISERS ORGANIZATION

Article 39 (Report on Establishment of Enterprisers Organization)

(1) When an enterprisers organization wishes to report matters for establishment under Article 25 (the former part) of the Act, it shall submit to the Fair Trade Commission a report specifying the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Title;

2. Articles of incorporation and details of the organization of the business;

3. Seat of enterprisers organization;

4. Addresses and names of representative and officers;

5. Date and ground of establishment; and

6. Number of member enterprisers.

(2) The report as referred to in paragraph (1) shall be accompanied by a copy of the corporation register or a copy of the certificate of registration as an organization from the competent agency.

(3) When an enterprisers

Article 39

organization which made a report on establishment as referred to in paragraph (1), wishes to modify the reported matters or to make a report on dissolution under Article 25 (the latter part) of the Act, it shall submit a report on the modification of reported matters or on the dissolution to the Fair Trade Commission. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(4) Deleted. <by Presidential Decree No. 13842, Feb. 20, 1993>

Article 40 (Approval of Act Restricting Competition of Enterprisers Organization)

(1) Any enterprisers organization which wishes to obtain, under Article 26 (2) of the Act, the approval of an act restricting competition as prescribed in Article 26 (1) 1 of the Act, shall submit to the Fair Trade Commission a written request specifying the following matters with documents attesting to the necessity of such acts restricting competition: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Reason why it wishes to conduct the act restricting competition, and details thereof; and

2. Criteria for and scope of the participating enterprisers.

(2) The provisions of Articles 24-2 (Requirements for Approval of Collaborative Acts for Industrial Rationalization) through 29 (Limits of

Article 40

Approval Collaborative Acts), 30 (Procedures, etc. on Approval of Collaborative Acts) (3), (4), (5), 31(Notification of Subjects of Request for Approval of Collaborative Acts), and 32 (Reports on Results of Application of Collaborative Acts) shall apply mutatis mutandis to the approval of acts suppressing competition. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 41 (Application of Provisions concerning Consultation on Correcting Advertisement, etc.)

The provisions of Article 38 shall be applicable mutatis mutandis to a publication of any correcting advertisement or violation of the Acct under Article 27 of the Act. In these cases, the term “Article 24 of the Act” used in Article 38 shall be considered as the term “Article 27 of the Act”, and the term “enterpriser”, as “enterprisers organization or member enterprisers”. <Amended by Presidential Decree No. 13842, Feb. 20, 1993; Presidential Decree No. 15328, Mar. 31, 1997>

Article 42 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>

CHAPTER Ⅶ RESTRICTION ON RESALE PRICE MAINTENANCE

Article 43 (Literary Works for which Resale Price Maintenance is P

Article 41 ~ 43

ermitted)

The term “literary works prescribed by the Presidential Decree” used in Article 29 (2) of the Act means the works as prescribed in Article 2 of the Copyright Act. <Amended by Presidential Decree No. 15328, Mar.1,1997>

Article 44 (Procedure for Designation of Goods subject to Resale Price Maintenance)

(1) Any enterpriser who wishes to have goods for resale price maintenance designated under Article 29 (3) of the Act, shall submit to the Fair Trade Commission a request specifying the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Details of the business;

2. Actual result of operation for the latest one year;

3. Contents of goods concerned;

4. Distribution channels of goods concerned and sales price trends by distribution stages for the latest one year;

5. Situation on distributors organization for goods concerned; and

6. Reason for the request for designation.

Article 44

(2) The request as referred to in paragraph (1) shall be accompanied by the following documents: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Documents attesting that the act maintaining the resale price of goods concerned is not detrimental unfairly to the interest of general consumers; and

2. Document attesting that the act is conformed to the requirements of subparagraph of Article 29 (2) of the Act.

Article 45 (Report on Resale Price Maintenance Contract)

(1) Any person who wishes to make a report or modification report on the resale price maintenance contract under Article 30 (1) of the Act, shall submit to the Fair Trade Commission a report specifying the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Trade name of, name and address of his representative of the other contractual party;

2. Summary of the other contractual party’s business;

3. Date of conclusion of contract;

4. Contents of contract; and

5. If he wishes to restrict the selling areas of goods concerned, the details and reason thereof.

Article 45

(2) If a person who made a report as referred to in paragraph (1), enters into a contract the contents of which are the same as the report, with many other enterprisers, he may substitute the report as referred to in paragraph (1) by informing the Fair Trade Commission of the number of enterprisers and presenting a copy of the written contract to the Fair Trade Commission. In these cases, the enterpriser shall report each year to the Fair Trade Commission the situation of contract execution as of the end of January.

Article 46 (Application Mutatis Mutandis of Provisions concerning Consultation on Publication of Violation of Act)

The provisions of Article 8 shall be applicable mutatis mutandis to the publication of violation of the Act as prescribed in Article 31 of the Act. In this case, the term “Article 5 of the Act” used in Article 8 shall be considered as the term “Article 31 of the Act”. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 46-2 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>

CHAPTER Ⅷ RESTRICTION ON CONCLUSION OF INTERNATIONAL CONTRACTS

Article 47 (Forms of International Contracts)

Article 46 ~ 47

Reference in Article 32 (Restrictions on Conclusion of Unfair International Contracts) (1) to “international agreements or contracts as provided for in the Presidential Decree” shall be construed to include international agreements or contracts falling under each of the following subparagraphs (hereinafter referred to as the “international contracts”):

1. Contractual licenses of industrial property rights : contracts for the purpose of taking rights of implementation or uses of industrial property rights such as patent rights, rights of practical invention, industrial designs rights, trade mark rights;

2. Contractual licenses of copyright : contracts for the purpose of taking copyright of books, phonograms, cinematographic works, computer programs, etc;

3. Contractual know-how licenses : contracts for the purpose of taking rights of implementation or uses of confidential business information or other like technology;

4. Franchise agreement: contracts for the purpose of taking rights of implementation or uses of business franchises to provide products or services under the franchiser’s business denomination in the form of a business franchise, or to assist the franchisee through guidance of business management;

5. Joint research and development agreement;

Article 47

6. Import agency agreement : import agency agreement for the purpose of continuous transactions of the importation of products or the introduction of services (excluding issuing services of warranty of sales of goods) whose duration is not less than one year; or

7. Joint venture agreement.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 48 (Request for Examination on International Contract)

(1) Any person who wishes to enter into an international contract, and to request an examination on the contents of the contract under Article 33 of the Act, shall file with the Fair Trade Commission the written request for examination as determined and announced publicly by the Fair Trade Commission. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) Any person who has entered into an international contract, and wishes to request an examination on the contract under Article 33 of the Act, shall file with the Fair Trade Commission the written request as determined and announced publicly by the Fair Trade Commission, together with the copy of such contract (including a translated version thereof) within thirty days after concluding such contract. This provision shall also apply in case where he revises or modifies the contents of contract. <Amended by Presidential Decree No. 15328, Mar. 31,

Article 48

1997>

(3) The Fair Trade Commission shall, upon receiving the request for examination as referred to in paragraphs (1) and (2), notify in writing the result to the person requesting the examination, within twenty days after receiving the request for examination, except in case where there is any justifiable reason.

(4) If the person requesting the examination receives from the Fair Trade Commission, a notification to the effect that the contents of the contract requested for examination is contrary to the provisions of Article 32 (1) of the Act, he may request a re-examination after revising the related clauses of the contract, within sixty days after he receives the notification. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

[This Article Wholly Amended by Presidential Decree No. 14566, Apr. 1, 1995]

CHAPTER Ⅸ OPERATION OF FAIRTRADE COMMISSION

Article 49 (Constitution of Committee)

(1) There shall be committees attached to the Fair Trade Commission which consists of 5 members or less in conformity with the provisions of Article 37-2 (Category of Meetings) of the Act.

Article 49

(2) The chairman of the Fair Trade Commission (hereinafter referred to as the “chairman”) may designate members of each committee and change, if necessary, them.

(3) Where a member of a committee is subject to grounds of challenge, discharge, or withdrawal as provided for in the provisions of Article 44 (Challenge, Discharge, Withdrawal of Members) of the Act, the chairman may refer cases raised before the committee to another member or may designate members of other committees to carry out functions as members of the committee with regard to such cases.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 50 (Functional Division of Committee)

The chairman may apportion functions and duties for each committee and change, if necessary, them.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 51 (Discharge or Withdrawal of Members)

(1) A person wishing to apply for discharge of a member under the provisions of Article 44 (Challenge, Discharge, Withdrawal of Members) (2) of the Act shall make a request with specified reasons to the chairman.

Article 50 ~ 51

(2) Grounds of discharge shall be attested to, in writing, not later than three days after the request of challenge.

(3) With respect to the application for discharge, any challenged member shall present, without delay, his views in writing to the chairman.

(4) Where he wishes to withdraw in accordance with the provisions of Article 44 (Challenge, Discharge, Withdrawal of Members) (3) of the Act, any member shall seek approval from the chairman.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 52 (Establishment of Local Administrative Organizations)

In order to implement the local affairs concerning the fair trade works, the Fair Trade Commission may establish any local administrative organization in accordance with the procedures set forth in the Presidential Decree.

Article 53 (Allowance, etc. of Member)

Non-standing members of the Fair Trade Commission are entitled to be paid allowances and other necessary expenses within the limit of the budget.

CHAPTER Ⅹ PROCEDURE OF INVESTIGATION, ETC.

Article 52 ~ 53

Article 54 (Method of Report on Violation)

Any person who wishes to make a report as prescribed in Article 49 (2) of the Act, shall submit to the Fair Trade Commission a document specifying the following matters: Provided, That if the matters to be reported require settlement urgently or if they are inevitable, the report may be made by telephone or orally: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Name and address of the reporter;

2. Address, name of representative, and business of the reported person;

3. Details of the reported person’s violation; and

4. Other matters to clarify the details of the violation.

Article 55 (Investigation, etc. of Fair Trade Commission)

(1) In cases where the Fair Trade Commission wishes to have parties, etc. attend and to hear their opinions under Article 50 (1) 1 of the Act, it shall issue a notice of summon specifying the subject of the case, name of the other party, date, time and place of attendance, and other matters. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) The designation of an appraiser under Article 50 (1) 2 of the Act shall be made by a document specifying the subject of the case, name

Article 54 ~ 55

of appraiser and period, object, contents, etc. of appraisal. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(3) Any order to report the cost and operating situation and to present other necessary materials under Article 50 (1) 3 of the Act shall be issued in writing with the subject of case, date and time of presentation, materials to be reported or presented: Provided, That for enterprisers, etc. present at the meeting of the Fair Trade Commission, these matters may be made orally. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 56 (Investigation, etc. of Subordinate Public Officials)

(1) The term “designated place” used in Article 50 (2) of the Act means the office or business place of an enterpriser or enterprisers organization and the place designated in the written demand for attendance issued by the Fair Trade Commission. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

(2) Any order to present materials or Articles or to keep presented materials or Articles in custody under Article 50 (3) of the Act shall be issued or made only when the evidence might be destroyed. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 57 (Payment of Expenses)

If the Fair Trade Commission hears the opinion of the interested person or witnesses

Article 56 ~ 57

under Article 50 (1) 1 of the Act, or commissions an appraiser under Article 50 (1) 2 of the Act, it may pay necessary expenses to the person concerned in the limit of the budget: Provided, That this shall not apply in cases where it hears such opinion at the office or business place of the interested person or witness. <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

Article 58 (Procedure for Recommendation of Correction)

The recommendation of correction under Article 51 (1) of the Act shall be made by a document specifying the following matters: <Amended by Presidential Decree No. 15328, Mar. 31, 1997>

1. Details of Violation;

2. Matters to be recommended;

3. Period of correction;

4. Time limit of notification on the acceptance or nonacceptance; and

5. Measures to be taken when the acceptance is refused.

Article 58-2 Deleted. <by Presidential Decree No. 15328, Mar. 31, 1997>

Article 59 (Procedures on, Limitation for Appeal)

Article 58 ~ 59

(1) A person wishing to file an appeal under the provisions of Article 53 (Appeal) (1) of the Act shall file an application containing subjects or contents of complaints, grounds of complaints, etc, together with relevant documents necessary for evidencing the grounds or contents of an appeal.

(2) Where it deems a submitted complaint or documents accompanied therewith in accordance with the provisions of above paragraph (1) insufficient, the Fair Trade Commission may make orders for the amendment and completion of the documents by setting time limits. In such cases, a period of time for amendment and completion (including the dates on which orders for amendment and completion have been sent and on which amended and completed documents have arrived at the Fair Trade Commission) shall not be included within the period computed under Article 53 (Appeal) (2).

(3) Reference in the proviso of Article 53 (Appeal) (2) to “unavoidable causes” shall be construed to include each content of the following subparagraphs:

1. Where it is required to conduct independent economic analysis such as investigation or review of the extent or structure of the market, market share, status of exports or imports, etc. for determining whether or not any measure is illegal or unreasonable;

2. Where it is required to conduct elaborate legal analysis or review for determining whether or not any measure is illegal or unreasonable;

Article 59

3. Where it requires a long period of time to investigate claims or materials which are newly presented during the procedures of deliberation of complaints;

4. Where the parties, interested persons, etc. are not cooperative in the investigation by exercising their rights of silence or by not submitting materials at the right time; or

5. Where it is unavoidable to extend such period for reasons falling under subparagraphs 1 through 4.

[This Article Wholly Amended by Presidential Decree No. 15328, Mar. 31, 1997]

Article 60 (Stay of Enforcement of Orders for Corrective Measures)

A person wishing to make a request for the stay of enforcement of corrective measures or for the revocation of decisions as to the stay of enforcement of corrective measures in accordance with the provisions of Article 53-2 (Stay of Enforcement of Orders for Corrective Measures) of the Act shall submit to the Fair Trade Commission an application containing claims or causes of the request, together with documents necessary for providing evidence regarding the grounds or contents of the request.

[This

Article 60

Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

CHAPTER XI IMPOSITION AND COLLECTION OF SURCHARGE

Article 61 (Collection and Enhancement of Surcharge)

(1) Where it wishes to impose a surcharge in accordance with the provision of Article 55-3 (Imposition of Surcharge) (1) of the Act, the Fair Trade Commission shall give notice, in writing, containing the type of violation and the amount of surcharge to the effect that the amount shall be paid.

(2) A person to whom a notice has been given in accordance with the provisions of above paragraph (1) shall pay such surcharge within sixty days from the date of notification to establishments mandated by the Fair Trade Commission for receipt of such payment: Provided, That if the payment of the surcharge is not possible to be made within such period because of natural disasters, earthquakes, or other unavoidable causes, the payment shall be made not later than thirty days after the date on which such grounds disappear.

(3) The Fair Trade Commission may collect an enhancement of surcharge accountable for six percent of the surcharge unpaid from the following day of the expiry of the period of surcharge payment, unless a person subject to surcharge payment pays the sum of surcharge within the period of payment.

Article 61

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 62 (Standards and Limitations of Application of Extension of

Period of Surcharge Payment and Payment in Installments)

(1) Reference in Article 55-4 (Extension of Period of Surcharge Payment and Payment in Installments) (1) of the Act to “the amount determined by the Presidential Decree” shall be construed to include either the amount computed by turnover as prescribed in the provisions of Article 9 (Methods of Computation of Surcharge) multiplied by one percent, or a billion won.

(2) The period of surcharge payment pursuant to the provisions of Article 55-4 (Extension of Period of Surcharge Payment and Payment in Installments) (1) of the Act may not be extended over a year.

(3) In the event of payment in installments under the provisions of Article 55-4 (Extension of Period of Surcharge Payment and Payment in Installments) (1) of the Act, the intervals between periods of installments shall not exceed six months, and the number of installments shall not exceed three times.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 62

Article 63 (Application for Extension of Period of Surcharge Payment

and Payment in Installments)

An application for the extension of the period of surcharge payment or payment in installments under the provisions of Article 55-4 (Extension of Period of Surcharge Payment and Payment in Installments) (1) of the Act shall be made in the form as determined by the Fair Trade Commission.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 64 (Types, Assessment, etc. of Security)

The provisions of Articles 29 (Types of Security) through 34 (Cancellation of Security) of the Framework Act on National Taxes, and Articles 13 (Assessment of Security for Tax Payment) through 17 (Cancellation of Security for Tax Payment) of the Decree to Implement the Framework Act on National Taxes shall apply mutatis mutandis to security as provided for in Article 55-4 (Extension of Period of Surcharge Payment and Payment in Installments).

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 65 (Imposition of Fine for Negligence)

Article 63 ~ 65

(1) In the event of the imposition of a fine for negligence pursuant to the provisions of Article 69-2 (Administrative Fine) (1) or (2) of the Act, the Fair Trade Commission shall conduct an investigation and confirmation of the existence of the violations, and give to the person, subject to the imposition of a fine for negligence, notice, in writing, containing the facts of the violation, modes of submission of complaints, time-limit for complaints, amount of fine for negligence, etc., together with the statement that the amount shall be paid.

(2) Where it wishes to impose a fine for negligence, the Fair Trade Commission shall afford a person, subject to the fine for negligence, an opportunity to present, orally or in writing, his views by setting a time limit of not less than ten days. In such cases, it is deemed that there exist no views, unless views have been presented by the prescribed date.

(3) In cases of determination of the amount of a fine for negligence, the Fair Trade Commission shall take into account motives, results, etc. of the violations.

[This Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

Article 66 (Detailed Regulations of Application)

Matters necessary for the application of this Decree shall be determined and notified by the Fair Trade Commission.

[This

Article 66

Article Newly Inserted by Presidential Decree No. 15328, Mar. 31, 1997]

ADDENDA

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation.

Article 2 (Transitional Measures concerning Matters in Settlement)

Matters which the Mayor/Do governor is investigating over, or recommending the correction under the previous Articles 34 and 35 at the time of the enforcement of this Decree, shall be subject to the previous provisions.

Article 3 Omitted.

ADDENDA <Presidential Decree No. 13842, Feb. 20, 1993>

Article 1 (Enforcement Date)

This Decree shall enter into force on April 1, 1993.

Article 2 Omitted.

ADDENDA <Presidential Decree No. 14566, Apr. 1, 1995>

(1) (Enforcement Date) This Decree shall enter into force on the date of it

Addenda

s promulgation.

(2) (Transitional Measures concerning Exception Recognized Investment) Any investment for which an exception is recognized by the Fair Trade Commission under subparagraph 3 of the previous Article 17-2, at the time this Decree enters into force, shall be subject to the previous provisions.

(3) (Examples of Application) The revised provisions of subparagraph 3 of Article 17-2 shall be applicable only to the new shares acquired or owned after this Decree enters into force.

ADDENDA <Presidential Decree No. 15328, Mar. 31, 1997>

Article 1 (Enforcement Date)

This Decree shall enter into force on April 1, 1997.

Article 2 (Examples of Application of Filing Financial Statements or Audit Reports, etc.)

The provisions of Articles 3-2 (Exclusion from Enterprise Group) (4), 17 (Scope of Large Enterprise Group Subject to Restrictions on Debt Guarantee) (3) and 17-4 (Requirements for and Confirmation of Sound Ownership-Diversified Company) (2) shall apply from January 1, 1998.

Article 3 (Transitional Measures as to Contributions for Improvement of Overseas Industrial Competitiveness)

After this Decree

Addenda

takes effect, the acquirement or ownership of sharesor stocks recognized by the Fair Trade Commission pursuant to the previous provisions of subparagraph 3 of Article 17-2 (Requirements for Contributions for the Improvement of Overseas Industrial Competitiveness) shall be subject to the previous provisions.

Article 4 (Transitional Measures as to Sound Ownership-Diversified Companies)

After this Decree enter into force, one of the sound ownership-diversified companies shall be deemed to have been recognized by the Fair Trade Commission in accordance with the amended provisions of Article 17-4 (Requirements for and Confirmation of Sound Ownership-Diversified Companies): Provided, That as respects requirements for the sound ownership-diversified companies, the previous provisions of this Decree shall be effective for the duration of three years from the entry into force of this Decree.

Article 5 Omitted.

ADDENDA <Presidential Decree No. 15569, Dec. 31, 1997>

Article 1 (Enforcement Date)

This Decree shall enter into force on January 1, 1998.

Articles 2 through 5 Omitted.

Addenda

ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT
- Articles
- Addenda

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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12. 독점규제 및 공정거래에 관한 법률 시행령

2021-01-05 / 제31380호 / 시행 2021-01-05
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

15. 독점규제 및 공정거래에 관한 법률 시행령

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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2019-01-08 / 제29476호 / 시행 2019-01-08
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

19. 독점규제 및 공정거래에 관한 법률 시행령

2018-10-30 / 제29269호 / 시행 2018-11-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

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ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

25. 독점규제 및 공정거래에 관한 법률 시행령

2016-09-29 / 제27534호 / 시행 2016-09-30
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

26. 독점규제 및 공정거래에 관한 법률 시행령

2016-09-29 / 제27529호 / 시행 2016-09-30
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

27. 독점규제 및 공정거래에 관한 법률 시행령

2016-06-30 / 제27299호 / 시행 2016-07-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

28. 독점규제 및 공정거래에 관한 법률 시행령

2016-04-29 / 제27115호 / 시행 2016-04-29
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

29. 독점규제 및 공정거래에 관한 법률 시행령

2016-03-08 / 제27034호 / 시행 2016-03-08
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

30. 독점규제 및 공정거래에 관한 법률 시행령

2014-12-09 / 제25840호 / 시행 2015-01-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

31. 독점규제 및 공정거래에 관한 법률 시행령

2014-07-21 / 제25503호 / 시행 2014-07-25
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

32. 독점규제 및 공정거래에 관한 법률 시행령

2014-02-11 / 제25173호 / 시행 2014-02-14
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

33. 독점규제 및 공정거래에 관한 법률 시행령

2014-01-14 / 제25079호 / 시행 2014-01-14
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

34. 독점규제 및 공정거래에 관한 법률 시행령

2013-08-27 / 제24697호 / 시행 2013-08-29
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

35. 독점규제 및 공정거래에 관한 법률 시행령

2012-06-19 / 제23864호 / 시행 2012-06-22
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

36. 독점규제 및 공정거래에 관한 법률 시행령

2012-01-25 / 제23527호 / 시행 2012-01-26
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

37. 독점규제 및 공정거래에 관한 법률 시행령

2011-12-30 / 제23475호 / 시행 2012-01-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

38. 독점규제 및 공정거래에 관한 법률 시행령

2010-11-02 / 제22467호 / 시행 2010-11-02
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

39. 독점규제 및 공정거래에 관한 법률 시행령

2010-05-14 / 제22160호 / 시행 2010-05-14
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

40. 독점규제 및 공정거래에 관한 법률 시행령

2010-05-04 / 제22151호 / 시행 2010-05-05
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

41. 독점규제 및 공정거래에 관한 법률 시행령

2010-01-27 / 제22003호 / 시행 2010-02-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

42. 독점규제 및 공정거래에 관한 법률 시행령

2009-10-01 / 제21765호 / 시행 2009-10-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

43. 독점규제 및 공정거래에 관한 법률 시행령

2009-07-07 / 제21626호 / 시행 2009-07-07
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

44. 독점규제 및 공정거래에 관한 법률 시행령

2009-05-13 / 제21492호 / 시행 2009-05-13
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

45. 독점규제 및 공정거래에 관한 법률 시행령

2009-05-06 / 제21480호 / 시행 2009-05-08
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

46. 독점규제 및 공정거래에 관한 법률 시행령

2008-12-03 / 제21148호 / 시행 2008-12-06
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

47. 독점규제 및 공정거래에 관한 법률 시행령

2008-07-29 / 제20947호 / 시행 2009-02-04
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

48. 독점규제 및 공정거래에 관한 법률 시행령

2008-06-25 / 제20884호 / 시행 2008-07-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

49. 독점규제 및 공정거래에 관한 법률 시행령

2007-11-02 / 제20360호 / 시행 2007-11-04
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

50. 독점규제 및 공정거래에 관한 법률 시행령

2007-10-23 / 제20331호 / 시행 2007-10-28
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

51. 독점규제 및 공정거래에 관한 법률 시행령

2007-07-13 / 제20166호 / 시행 2007-07-14
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

52. 독점규제 및 공정거래에 관한 법률 시행령

2020-09-29 / 제19847호 / 시행 2020-10-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

53. 독점규제 및 공정거래에 관한 법률 시행령

2006-06-29 / 제19574호 / 시행 2006-07-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

54. 독점규제 및 공정거래에 관한 법률 시행령

2006-04-14 / 제19447호 / 시행 2006-04-14
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

55. 독점규제 및 공정거래에 관한 법률 시행령

2006-03-29 / 제19422호 / 시행 2006-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

56. 독점규제 및 공정거래에 관한 법률 시행령

2005-08-31 / 제19023호 / 시행 2005-08-31
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

57. 독점규제 및 공정거래에 관한 법률 시행령

2005-06-30 / 제18921호 / 시행 2005-07-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

58. 독점규제 및 공정거래에 관한 법률 시행령

2005-06-30 / 제18903호 / 시행 2005-07-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

59. 독점규제 및 공정거래에 관한 법률 시행령

2005-03-31 / 제18768호 / 시행 2005-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

60. 독점규제 및 공정거래에 관한 법률 시행령

2005-03-08 / 제18736호 / 시행 2005-03-08
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

61. 독점규제 및 공정거래에 관한 법률 시행령

2004-04-01 / 제18356호 / 시행 2004-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

62. 독점규제 및 공정거래에 관한 법률 시행령

2004-03-17 / 제18312호 / 시행 2004-03-17
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

63. 독점규제 및 공정거래에 관한 법률 시행령

2002-03-30 / 제17564호 / 시행 2002-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

64. 독점규제 및 공정거래에 관한 법률 시행령

2001-07-24 / 제17317호 / 시행 2001-07-24
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

65. 독점규제 및 공정거래에 관한 법률 시행령

2001-03-27 / 제17176호 / 시행 2001-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

66. 독점규제 및 공정거래에 관한 법률 시행령

2000-04-01 / 제16777호 / 시행 2000-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

67. 독점규제 및 공정거래에 관한 법률 시행령

1999-12-31 / 제16685호 / 시행 1999-12-31
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

68. 독점규제 및 공정거래에 관한 법률 시행령

1999-06-30 / 제16430호 / 시행 1999-07-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

69. 독점규제 및 공정거래에 관한 법률 시행령

1999-03-31 / 제16221호 / 시행 1999-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

70. 독점규제 및 공정거래에 관한 법률 시행령

1998-04-01 / 제15767호 / 시행 1998-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

71. 독점규제 및 공정거래에 관한 법률 시행령

1997-12-31 / 제15569호 / 시행 1998-01-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

72. 독점규제 및 공정거래에 관한 법률 시행령

1997-03-31 / 제15328호 / 시행 1997-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

73. 독점규제 및 공정거래에 관한 법률 시행령

1995-04-01 / 제14566호 / 시행 1995-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

74. 독점규제 및 공정거래에 관한 법률 시행령

1993-02-20 / 제13842호 / 시행 1993-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

75. 독점규제 및 공정거래에 관한 법률 시행령

1990-04-14 / 제12979호 / 시행 1990-04-14
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

76. 독점규제 및 공정거래에 관한 법률 시행령

1987-04-01 / 제12120호 / 시행 1987-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

77. 독점규제 및 공정거래에 관한 법률 시행령

1984-07-21 / 제11474호 / 시행 1984-07-21
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT

78. 독점규제 및 공정거래에 관한 법률 시행령

1981-04-01 / 제10267호 / 시행 1981-04-01
ENFORCEMENT DECREE OF THE MONOPOLY REGULATION AND FAIR TRADE ACT