From securities acquisition report review to report agency, one-stop service!

Law firm Veat received a request from foreign corporation A (hereinafter "Client") to review the necessity of securities acquisition reporting.

​The Client had acquired shares of a Korean subsidiary without separate reporting and after a considerable period of time, they requested a review to determine whether the past acquisition of shares by the Korean subsidiary was subject to securities acquisition reporting obligations and whether a violation report was currently required.

​Law firm Veat first ascertained whether the past acquisition of shares by the Korean subsidiary was subject to securities acquisition reporting obligations in accordance with the legal regulations at the time.

​Furthermore, since a considerable time had passed, they requested a review of the legal requirements and exemption regulations at the time of the share acquisition.

Securities acquisition reporting is a procedure that foreign investors must comply with in accordance with the Foreign Exchange Law, Capital Market Law, etc., when acquiring shares of a domestic company. In particular, when a foreign corporation acquires shares of a listed or unlisted company in Korea, it must file a securities acquisition report unless certain requirements are met.

However, not all share acquisitions by foreign corporations in Korean subsidiaries are subject to securities acquisition reporting. If certain requirements are met in law, the obligation to file a securities acquisition report may be waived.

Law firm Veat thoroughly reviewed the Client's share acquisition case and confirmed that it was an exception that did not require reporting. Through Law firm Veat's professional and accurate advice, the Client was able to avoid spending time and money on unnecessary preparation for a violation report.

Procedure after securities acquisition reporting exemption

Even if securities acquisition reporting is waived, all procedures are not completed, and a confirmation procedure through a foreign exchange bank must be carried out. The foreign exchange bank reviews the legality of related foreign exchange transactions when a foreign corporation or foreign investor acquires shares and verifies that the movement of funds has been carried out legally to verify whether the transaction meets the legal requirements.

After confirmation of reporting exemption, the foreign exchange bank's confirmation procedure is a stage to finalize the securities acquisition reporting exemption and confirm that the acquisition of domestic shares by foreign capital has been carried out legally, and to substantiate the legitimacy of the securities acquisition reporting exemption by submitting required documents, confirming the exemption, and issuing a certificate. 

Law firm Veat negotiated with the foreign exchange bank to prepare the necessary documents and acted as an agent for the confirmation procedure, providing the Client with one-stop service for the concluding procedures after securities acquisition reporting exemption.

When foreign corporations or foreign investors acquire Korean shares, it is essential to seek advice from experts because failure to comply with legal procedures may result in subsequent legal problems and economic disadvantages. 

Law firm Veat provides rapid and efficient one-stop service, from reviewing the necessity of reporting and acting as an agent for foreign exchange transaction reporting and securities acquisition reporting, based on experience accumulated through numerous securities acquisition reporting agency cases. 

​If you have difficulties with foreign exchange transaction reporting at Law firm Veat, please feel free to contact [Law firm Veat Foreign Exchange Reporting Center].

​Thank you.
Law firm Veat