Investing In... 2026

SOUTH KOREA LAW AND PRACTICE Contributed by: Tehyok Daniel Yi, Gun Kim, Kyu Hyun Kim, Sun Hee Kim, Yong Whan Choi, Yong Min Lee, Jung Woo Lee and Hyeon Jeong, Yulchon LLC

6.3 Remedies and Commitments Under the MRFTA, the KFTC has broad discretion to impose “necessary measures to remedy the viola - tion” for mergers that restrict competition. This allows the KFTC to implement a wide range of remedies to address anti-competitive concerns. Types of remedies are broadly classified as structural remedies such as divestitures, and behavioural remedies such as limi - tations of price increases, supply obligations and/or non-discriminatory access to certain intellectual prop - erty. 6.4 Antitrust/Competition Enforcement The KFTC has the authority to block or prohibit merg - ers that are deemed to have anti-competitive effects. A company subject to prohibition orders may file an objection with the KFTC or appeal the decision in court. Failing to file the required notification and closing the transaction without approval for a transaction requir - ing pre-merger notification or failing to file within 30 days after the closing date for a transaction requiring post-merger notification may result in a fine of up to KRW100 million. However, if an unnotified transaction or premature closing is ultimately found to have no anti-competitive effects, the KFTC will limit its actions to imposing the fine and will not pursue additional corrective measures or financial sanctions. 7. Foreign Investment/National Security 7.1 Applicable Regulator and Process Overview Foreign Investment and National Security Review in South Korea The FIPA regulates FDI exceeding KRW100 million or 10% ownership in a Korean company, or less than 10% ownership if it includes the right to appoint a director. These investments require notification to an authorised foreign exchange bank or KOTRA and registration of the Korean entity as a foreign-invested company, granting access to potential tax and other benefits.

ket. The criteria for conducting a competitive assess - ment are outlined in detail under the KFTC’s Merger Review Guidelines, which broadly classify mergers into three types: horizontal mergers; vertical merg - ers; and conglomerate mergers, with specific criteria provided for assessing the anti-competitive effects of each type. Horizontal Mergers In the case of horizontal mergers, the KFTC compre - hensively evaluates factors such as market concentra - tion before and after the merger, the potential for uni - lateral and co-ordinated effects, the extent of foreign competition and international competitive conditions, the likelihood of new market entry, and the presence of substitute or adjacent markets. Vertical Mergers For vertical mergers, the KFTC primarily evaluates the likelihood of foreclosure of supply or distribution channels for competitors of the merging parties, as well as the potential to block market entry by other businesses. Conglomerate Mergers For conglomerate mergers, the KFTC focuses on whether the merger reduces potential competition or results in the exclusion of rival businesses. The Merger Review Guidelines also include special provisions for mergers in the digital sector. • For mergers involving online platforms, network effects are considered as a factor in assessing anti- competitive concerns. • For mergers involving data assets, the potential formation, strengthening, or maintenance of market dominance through the acquisition of data assets is taken into account. Additionally, mitigating factors that may alleviate anti- competitive concerns include the presence of foreign competition, international market dynamics, the likeli - hood of new market entry, competitive pressure from neighbouring markets and buyers’ countervailing buy - ing power.

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