You had started a business in Korea by setting up a business entity under Korean law. It is natural that, at some point, you might consider withdrawing from the Korean market and getting your investment and profits back to your home country. You might also want to close the business in Korea and liquidate all debts and liabilities. If that is the case and a stock company or LLC is the legal form of your Korean business entity, subsidiary, or affiliate, here is what you should know about the company dissolution and liquidation process in Korea.

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Like many other countries, South Korea has its own merger notification & competition review regimes.  This means if your M&A deal involving a Korean company or business meets the merger notification thresholds prescribed in the rules of the Korean competition authority, you need to make a merger filing. And your transaction becomes subject to the authority’s competition review.  Thus, it is imperative that the dealmakers should be fully advised on the Korean merger filing rules for the applicability and for any potential risks.

Korean M&A Regulatory Law and Agency

In Korea, the Monopoly Regulation and Fair Trade Act (MRFTA) regulates the M&A and other similar transactions.  The MRFTA appoints the Korea Fair Trade Commission (KFTC) as the regulatory agency that is in charge of receiving the pre-merger notification and carrying out the competition review.

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