What laws apply to mergers & acquisitions in South Korea?

This country-specific Q&A provides an overview of Mergers & Acquisitions laws and regulations applicable in South Korea. What are the key rules/laws relevant to M&A and who are the key regulatory authorities? The primary relevant law governing M&As in Korea is the Korean Commercial Code (“KCC”), which applies to all forms of companies.

Can a foreign buyer acquire shares of a South Korean company?

A foreign buyer acquiring shares of a South Korean company occasionally incorporates an acquisition vehicle in a jurisdiction that has such a tax treaty with South Korea. However, if the acquisition vehicle does not have any substance it may be considered a conduit.

How did South Korea acquire advanced military technology?

In 1994, its successor government, the Russian Federation, and South Korea signed a bilateral agreement that allowed South Korea to “acquire advanced military technologies” through “Operation Siberian Brown Bear” as repayment for the loans.

What is South Korea's Defense Acquisition Program administration?

For one, South Korea’s Defense Acquisition Program Administration or (DAPA), is in “charge of improving the defense capabilities of the nation, and fostering the defense industry.” Not only does DAPA focus on acquiring new defense capabilities, the agency also hopes that domestic arms development will boost small/medium-sized businesses.