Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

  Pre-merger notification is mandatory where the size of the merging parties exceeds the thresholds. Mergers in which only small companies are engaged or tender offers require a post-merger notification. For these mergers, notification should be made within 30 days after the completion of the merger.
  A system of voluntary prior notification also exists. A company that plans to merge with another …

Merger notification

  Pre-merger notification is mandatory where the size of the merging parties exceeds the thresholds. Mergers in which only small companies are engaged or tender offers require a post-merger notification. For these mergers, notification should be made within 30 days after the completion of the merger.

  A system of voluntary prior notification also exists. A company that plans to merge with another may ask the KFTC to review the planned merger before the ordinary notification period and decide whether the planned merger will substantially restrict competition. After completion of the transaction, the parties have to file a formal, although less burdensome, notification and the waiting-period is shortened to 15 days.

The M&A Notification Guidelines and the Review Standard for Combination of Enterprises (hereinafter, "M&A Review Standard") were amended by the Korea Fair Trade Commission (hereafter, "KFTC") and entered into force on 30 December 2022.

A simplified review and notification process as part of a fast-track merger procedure is now available for mergers with clear investment purposes, such as additional funding for private equity funds (PEF) and the concurrent holding of an executive position after investments in venture and startup businesses. Through an online notification system, undertakings can easily notify newly included mergers that qualify for simplified review. Mergers subject to simplified review will undergo a brief review period (15 days, in principle). Simplified notification will also apply to other merger types, such as the creation of project financing vehicles (PFV) and mergers that have undergone voluntary pre-merger review.

This reform expands the simplified review process' purview for mergers completed purely for investment purposes, improves the streamlined review procedures for international mergers with no effect on the home market, broadens the safe harbor regulations' application to non-horizontal mergers (vertical, conglomerate) and expands the number of mergers that fall under the simplified notification.

Private parties are not allowed to actively participate in the review process. However, they can submit information and their opinions. They can request the KFTC for data relating to measures that the KFTC has taken. The KFTC must comply with such requests if it feels it is in the public interest. The persons providing the relevant data must grant consent. Finally they can also be heard during the full Commission hearing, if the KFTC so accepts.

The review period is 30 days but can be extended by an additional period of 90 days if the KFTC deems further examination to be necessary. The majority of the notified mergers go through the KFTC review without further requests for information. But if the KFTC finds it necessary to request additional information, mostly related to issues having arisen during its review, it will ask the parties to provide the information within a certain time-limit. If, for example, the KFTC is concerned about the anti-competitiveness of a merger, it may extend the review period up to a maximum of 90 days after the end of the first 30 day review period. If a merger raises substantial issues, the KFTC can decide to refer the case to full commissioners. The KFTC will decide at the end of the review to either approve the transaction or prohibit it.

On 1 May 2024, the Korea Fair Trade Commission (KFTC) implemented amendments to its Merger Review Guidelines to better address the unique characteristics of the digital economy. The guidelines also introduce criteria for evaluating efficiency gains in digital mergers, including benefits from data integration and service innovation. Additionally, certain conglomerate mergers involving digital platforms are now excluded from simplified review if the target exceeds thresholds related to user base or R&D investment.

Global Competition Law

1295. Merger notification

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Les notions juridiques connexes

1295. Merger notification

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise