What legislation governs M&A activity in South Korea?
The Korean Commercial Code (the KCC) provides for the general business and corporate laws governing Korean companies, including laws relating to the incorporation of a company, the acquisition of shares, business transfers, mergers, spin-offs and other transaction structures. If the acquisition involves shares of a Korean company listed on the Stock Market Division of the Korea Exchange (the KSE) or registered on the Kosdaq Market Division of the Korea Exchange (Kosdaq), the Securities Exchange Law (SEL) and other related rules and regulations will apply. M&A transactions are also subject to the business combination reporting requirements to the Korean Fair Trade Commission (the FTC) under the Monopoly Regulation and Fair Trade Law. Foreign investment in Korean companies can be categorised as either a foreign direct investment under the Foreign Investment Promotion Law (the FIPL), or a portfolio investment under the Foreign Exchange Transaction Law. If a foreign investor either acquire
