[Consultation] Review of structures and laws to be considered for changes in corporate governance.

Veat is a corporation and Law firm Veat undertook a restructuring to change its corporate structure, establishing new subsidiaries and converting existing subsidiaries into holding companies.

The Fair Trade Commission designates large business groups with total assets exceeding 5 trillion won, and among these designated large business groups, those with total assets exceeding 10 trillion won are designated as closed business groups. Designated as a large business group, companies must disclose corporate group status, large internal transactions, and important matters of privately-held subsidiaries, and when designated as a closed business group, they are subject to stricter regulations, including restrictions on cross-shareholding and circular shareholding.(《Competition Act and Act on Fair Trade》Article 14,《Fair Trade Act》Article 14)

Accordingly, Veat reviewed whether any regulations exist to restrict A, a company with assets exceeding a certain scale, from undertaking such a corporate restructuring as described above, and if so, reviewed the requirements that it must meet to legally carry out the corporate restructuring.

Law firm Veat helps clients minimize legal risks by thoroughly reviewing various regulations applicable in the course of business operations and providing legitimate solutions to ensure clients can proceed in the direction that best serves their interests.

If you need legal advice regarding corporate restructuring and compliance with the Fair Trade Act, please contact Law firm Veat at any time.

Thank you.