'Simple Notification for Mergers and Acquisitions' Internet Submissions Only 1%... Fair Trade Commission to Improve Online System

Simplified Notification for Mergers and Acquisitions to Be Accepted Principally via Online Reporting
Expectations for Reduced Document Submission Burden and Shortened Review Period

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) announced on the 22nd that it has improved the online reporting system to facilitate smooth reporting of mergers and acquisitions subject to simplified notification.

The simplified notification targets include mergers between related parties, cases where less than one-third of executives overlap, and private equity fund (PEF) establishments, which are presumed to have no competition restrictions. These accounted for about 48% of all merger notifications last year.

However, although simplified notification cases can be reported online, the system was underutilized due to deficiencies. The system was established in 2005, but the online reporting rate was only about 1% of reported cases in 2020.

Accordingly, the KFTC has fully digitized the simplified notification and review process and improved frequent system errors. First, errors occurring during system access, input of report details, and document uploads were eliminated, and the online reporting form, which previously differed somewhat from the statutory form, was revised to comply with the legal format. Additionally, a 'Report and Additional Company Function' was introduced to allow input of all participating companies when multiple companies are involved, such as in company establishment.

During the merger review stage, the system now provides notifications on the review progress, eliminating the inconvenience of separately confirming progress by phone.

By linking the data entered at the time of reporting with the report, the content is automatically reflected in the report, reducing the time required for the review officer to input data. Also, when requesting or submitting additional documents, using 'Document24' shortens the time needed for document requests and submissions. After the review of a reported case is completed, the review results are automatically notified through Document24.

A KFTC official stated, "With this improvement of the online reporting system for mergers and acquisitions, simplified notification cases will be principally accepted via online reporting," adding, "Once the second phase of system advancement is completed next year, the burden of document submission for companies will be greatly reduced, and the KFTC’s review period is expected to be shortened."

This content was produced with the assistance of AI translation services.