Companies established by industry-academia-research collaboration will be permanently excluded from large business groups
On the 26th, the Fair Trade Commission announced the legislative notice of the 'Amendment to the Enforcement Decree of the Monopoly Regulation and Fair Trade Act' until August 11
The Fair Trade Commission has prepared a revision of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act to permanently exclude university-industry cooperation technology holding companies from large business groups, and will announce the legislative notice from the 27th to August 11th.
On the 26th, the Fair Trade Commission announced that the main content of the revision is to change the previous 10-year grace period for including university-industry cooperation technology holding companies and their subsidiaries, established by university industry-academic cooperation foundations, into business groups, to a permanent exclusion.
University-industry cooperation technology holding companies refer to holding companies and their subsidiaries established by university industry-academic cooperation foundations within universities, which are foundations of large business groups, authorized by the Ministry of Education. These organizations operate with the purpose of commercializing technologies owned by universities.
The Fair Trade Commission explained that after operating the grace period system for about 13 years, it was evaluated that concerns about unfair economic concentration through university-industry cooperation technology holding companies were minimal. However, even with this revision permanently excluding these companies from the scope of large business groups, safety measures such as prohibiting investment and debt guarantees by the controlling shareholder company are maintained to prevent concerns about unfair economic concentration.
As of the end of 2021, there are a total of 1,328 university-industry cooperation technology holding companies and subsidiaries established by 106 university industry-academic cooperation foundations nationwide (75 holding companies and 1,253 subsidiaries). Among them, companies belonging to large business groups (6 holding companies and 29 subsidiaries) account for 3% of the total. The Fair Trade Commission plans to promptly complete the revision after fully collecting opinions from stakeholders in academia, the economy, and the legal community during the legislative notice period, and going through related legislative procedures such as regulatory review and review by the Office for Government Policy Coordination.
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The Fair Trade Commission stated, “Through this revision of the Enforcement Decree, university-industry cooperation technology holding companies and their subsidiaries will be permanently excluded from the scope of large business groups, allowing them to continue receiving benefits related to small and medium-sized enterprises such as funding support and tax reductions, which is expected to promote investment through university-industry cooperation and commercialization of university-owned technologies.”
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