Article 20(Application for authorization for acquisition and merger) #
(1) A person who intends to obtain authorization to acquire all or part of the business of a facilities-based telecommunications business operator pursuant to Article 18 (1) 1 of the Act shall submit an application for authorization to acquire the facilities-based telecommunications business to the Minister of Science and ICT, along with the following documents: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 25, 2019>
1. A copy of a contract for transfer or acquisition;
2. The articles of association of a transferor or a transferee, and evidential documents related to transfer or acquisition;
3. A list of shareholders of a transferee or documents concerning the ownership of shares, etc. of shareholders, etc. thereof;
4. The current status of business operations of a transferor or a transferee;
5. A business plan subsequent to acquisition;
6. Terms and conditions of use, including details related to the protection of users; the status of establishment of a consumer protection organization; and a plan for operation;
7. Details of main facilities for business; a place where they are installed; and a schematic diagram of telecommunications networks.
(2) A person who intends to obtain authorization for a merger, division (limited to where the facilities-based telecommunications business is transferred following a division; hereafter in this Article and Article 22, the same shall apply), or merger after division (limited to where a divided corporate facilities-based telecommunications business operator is merged; hereafter in this Article and Article 22, the same shall apply) of a corporate facilities-based telecommunications business operator pursuant to Article 18 (1) 2 of the Act shall submit to the Minister of Science and ICT an application for authorization for a merger, division, or merger after division of the facilities-based telecommunications business, along with the following documents: <Amended on Dec. 9, 2022>
1. A copy of a contract for a merger, division, or merger after division, and a plan therefor;
2. The articles of incorporation of the parties to a merger, division, or merger after division, and evidential documents related thereto;
3. A list of shareholders of the following corporations or documents regarding the ownership of shares, etc. of shareholders, etc. thereof:
(a) A corporation that survives a merger or is established following a merger;
(b) A corporation that is established following a division;
(c) A corporation that survives a merger after division or is established following a merger after division;
4. The current status of business operations of the parties to a merger, division, merger after division;
5. A business plan subsequent to a merger, division, or merger of a division;
6. Terms and conditions of use, including details related to the protection of users; the status of the establishment of a consumer protection organization; and a plan for the operation thereof;
7. Details of main facilities for business; a place where they are installed; and a schematic diagram of telecommunications networks.
(3) A facilities-based telecommunications business operator who intends to obtain authorization to sell telecommunications line equipment pursuant to Article 18 (1) 3 of the Act shall submit to the Minister of Science and ICT an application for authorization to sell telecommunications line equipment, along with the following documents: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. A copy of a contract for sale or purchase of telecommunications line equipment and evidential documents related thereto;
2. The articles of incorporation of a seller or a purchaser and evidential documents related to sale and purchase;
3. A list of stockholders of a purchaser or documents concerning the ownership of stockholders, etc. thereof;
4. The current status of business operations of a seller or a purchaser;
5. A business plan subsequent to sale.
(4) A person who intends to own at least 15/100 of the total number of issued shares of a facilities-based telecommunications business operator, or to be the largest shareholder of a facilities-based telecommunications business operator pursuant to Article 18 (1) 4 of the Act, shall submit to the Minister of Science and ICT an application for authorization for the ownership of shares (the largest shareholder) of the facilities-based telecommunications business, along with the following documents: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. Documents evidencing the acquisition of shares, such as a copy of a contract for acquisition of the shares;
2. The articles of incorporation of a purchaser of shares or a person who intends to be the largest shareholder, and the other company;
3. The current status of shareholders of a purchaser of shares or a person who intends to be the largest shareholder, and the other company;
4. The current status of business operations of a purchaser of shares or a person who intends to be the largest shareholder, and the other company;
5. Purposes of and grounds for acquiring shares, and analysis of impacts from the acquisition of shares;
6. A plan for serving concurrently as an executive officer (only applicable where a person plans to serve concurrently as an executive officer of the other company);
7. A business plan formulated after the acquisition of shares (only applicable where a person intends to be the largest shareholder).
(5) A person who intends to obtain authorization for the acquisition of shares or the conclusion of an agreement pursuant to Article 18 (1) 5 of the Act shall submit an application for authorization to the Minister of Science and ICT, along with the following documents: <Amended on Mar. 23, 2013; Jul. 26, 2017>
1. Documents evidencing conduct to control the management rights, such as a copy of a contract for the acquisition of shares or a copy of an agreement;
2. The articles of incorporation of the purchaser of shares or the party to an agreement and the other company;
3. The current status of shareholders of a purchaser of shares or the party to an agreement and the other company;
4. The current status of business operations of a purchaser of shares or the party to an agreement and the other company;
5. Objectives of and grounds for the acquisition of shares or the conclusion of an agreement and analysis of impacts thereof;
6. A plan for serving concurrently as an executive officer (only applicable where a person plans to serve concurrently as an executive officer of the other company);
7. A business plan after the acquisition of shares or the conclusion of an agreement.
(6) "Cases prescribed by Presidential Decree" in Article 18 (1) 5 of the Act means any of the following cases:
1. Where the same person intends to actually exercise the largest shareholder's voting rights of a facilities-based telecommunications business operator by acquiring shares issued by its largest shareholder (including those issued by persons with special relations with the largest shareholder) solely or jointly with affiliated persons;
2. Where a person intends to acquire shares in excess of voting rights of the largest shareholder of a facilities-based telecommunications business operator jointly with persons (including affiliated persons) who have the same object to control the management of the facilities-based telecommunications business operator;
3. Where a person intends to actually control the management rights of a facilities-based telecommunications business operator through leasing business, delegation of management or other agreements similar thereto with the facilities-based telecommunications business operator or the largest shareholder thereof;
4. Where a person intends to jointly exercise voting rights in excess of the voting rights of the largest shareholder of a facilities-based telecommunications business operator by concluding an agreement with other shareholders other than the largest shareholder of the facilities-based telecommunications business operator.
(7) A facilities-based telecommunications business operator who intends to obtain authorization to incorporate a corporation to provide some registered facilities-based telecommunications services pursuant to Article 18 (1) 6 of the Act shall submit to the Minister of Science and ICT an application for authorization to incorporate a corporation to provide facilities-based telecommunications services, along with the following documents: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 25, 2019>
1. The articles of incorporation of a corporation to be incorporated;
2. A list of shareholders of a corporation to be incorporated or documents concerning the ownership of shares, etc. thereof;
3. The current status of business operations of services he or she intends to provide (only applicable to a facilities-based telecommunications business operator who is providing services that he or she intends to provide through a newly incorporated corporation);
4. A business plan of a corporation to be incorporated;
5. Terms and conditions of use, including details related to the protection of users; the status of establishment of a consumer protection organization; and a plan for operation;
6. Details of main facilities for business; a place where they are installed; and a schematic diagram of telecommunications networks.
(8) Applications for authorization under paragraphs (1) through (5) and (7) and documents referred to in each subparagraph of the same paragraphs may be submitted in the electronic form.
(9) Upon receipt of an application for authorization for acquisition, a merger, a division, a merger after division, sale, change of the largest shareholder, the acquisition of shares, the conclusion of an agreement, or the incorporation of a corporation pursuant to paragraphs (1) through (7), the Minister of Science and ICT shall verify the following matters through administrative data matching under Article 36 (1) of the Electronic Government Act; provided, where any of the relevant technical personnel does not consent to the verification of a document specified in subparagraph 2, a copy of the document must be attached to such application: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 25, 2019; Dec. 9, 2022>
1. A certificate of registered matters of a corporation (only applicable to the party to acquisition, a merger, a division, a merger after division, sale, change of the largest shareholder, the acquisition of shares, the conclusion of an agreement, or the incorporation of a corporation);
2. National technical qualification certificates of technical personnel (only applicable to a transferee, a corporation that survives or is incorporated following a merger, a corporation that is incorporated following a division, a corporation that survives or is incorporated following a merger after division, and a corporation to be incorporated).
(10) Where the Minister of Science and ICT grants authorization for acquisition, a merger, a division, a merger after division, or the incorporation of a corporation prescribed in paragraph (1), (2), or (7), he or she shall issue a certificate of registration of a facilities-based telecommunications business operator or a certificate of report. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 25, 2019; Dec. 9, 2022>
(11) Cases where the impact on competition in the facilities-based telecommunications business is insignificant as referred to in the proviso, with the exception of the subparagraphs, of Article 18 (2) and (11) of the Act shall be respectively cases where a person falling under any subparagraph of Article 18 (1) of the Act (excluding persons who fall under Article 18 (1) 3 and 6 of the Act and the facilities-based telecommunications business operators designated and publicly notified under Article 39 (3); hereafter in this Article referred to as "transferee, amalgamator, etc.") falls under any of the following cases by engaging in an act referred to in any subparagraph of Article 18 (1) of the Act (excluding acts referred to in Article 18 (1) 3 and 6 of the Act; hereafter in this paragraph referred to as "acquisition, merger, etc.") against a facilities-based telecommunications business operator whose turnover in the facilities-based telecommunications business during the immediately preceding year is less than 50 billion won in cases of the business possessing line equipment, and less than 100 billion won in cases of the business other than the business possessing line equipment (hereinafter referred to as "business not possessing line equipment") in the facilities-based telecommunications business: <Added on Apr. 14, 2015; Jun. 25, 2019; Dec. 28, 2021>
1. Where any of the following relationship (hereinafter referred to as "dominance relation") is not established by the relevant acquisition, merger, etc.:
(a) Where the shareholding ratio of the transferee, amalgamator, etc. is at least 50/100 (including shares; hereafter in this paragraph, the same shall apply);
(b) Where the shareholding ratio of the transferee, amalgamator, etc. is less than 50/100, in any of the following cases:
(i) Where the transferee, amalgamator, etc. is the largest shareholder and, based upon the degree of dispersion, is able to exercise control over the company by exercising the shareholder's right;
(ii) Where the transferee, amalgamator, etc. supplies at least 50/100 of raw materials and is a market-dominating enterpriser defined in subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act in the field of production of raw materials;
2. Where the transferee, amalgamator, etc. acquires common telecommunications business of a common telecommunications business operator in which the dominance relation has already been established;
3. Where the transferee, amalgamator, etc. merges a corporation, which is a common telecommunications business operator, in which the dominance relation has already been established.
(12) Under the proviso, with the exception of the subparagraphs, of Article 18 (2) of the Act and paragraph (11) of that Article, the Minister of Science and ICT may grant authorization to a person falling under paragraph (11) after examining only the appropriateness of the measures for protection of users prescribed in Article 18 (2) 4 of the Act, following consultations with the Fair Trade Commission as prescribed in Article 18 (6) of the Act. <Added on Apr. 14, 2015; Jul. 26, 2017>
[This Article Wholly Amended on Feb. 28, 2012]