Article 11-2(Cross-border acquisition, merger, etc. of target institutions holding national core technology) #
(1) Where a target institution holding national core technology that has been developed with government subsidies for research and development intends to engage in foreign investment such as cross-border acquisition, merger, joint venture, etc. (hereinafter referred to as "cross-border acquisition, merger, etc."), as prescribed by Presidential Decree, it shall obtain prior approval from the Minister of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Aug. 20, 2019; Oct. 1, 2025>
(2) Where a target institution under paragraph (1) becomes aware that a foreigner determined by Presidential Decree (hereafter in this Article referred to as "foreigner") has been conducting cross-border acquisition, merger, etc., it shall without delay report such fact to the Minister of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Aug. 20, 2019; Oct. 1, 2025>
(3) Upon receipt of a report from a target institution under paragraph (2), the Minister of Trade, Industry and Resources may request the foreigner who intends to conduct cross-border acquisition, merger, etc. to cooperate in the procedure for approval under paragraph (1). The foreigner so requested in such cases shall comply with the request, in the absence of special circumstances. <Added on Aug. 20, 2019; Oct. 1, 2025>
(4) Upon receipt of an application for approval under paragraph (1), the Minister of Trade, Industry and Resources may grant approval after review of the ripple effects of divulgence of industrial technology on national security and national economy due to cross-border acquisition, merger, etc., consultation with the heads of the relevant central administrative agencies, and deliberation by the Committee. In such cases, the Minister of Trade, Industry and Resources may attach conditions deemed necessary when granting approval. <Added on Aug. 20, 2019; Jan. 21, 2025; Oct. 1, 2025>
(5) Where a target institution which holds and manages any national core technology other than that subject to approval under paragraph (1) intends to conduct cross-border acquisition, merger, etc., it shall report thereon to the Minister of Trade, Industry and Resources in advance. <Added on Aug. 20, 2019; Oct. 1, 2025>
(6) Where a target institution under paragraph (5) becomes aware that a foreigner has been conducting cross-border acquisition, merger, etc., it shall without delay report such fact to the Minister of Trade, Industry and Resources. <Added on Aug. 20, 2019; Oct. 1, 2025>
(7) Upon receipt of a report under paragraph (5), the Minister of Trade, Industry and Resources shall review the impact of cross-border acquisition, merger, etc. on national security and other factors, and shall accept the report if it has no serious impact on national security and conforms to this Act. <Added on Jan. 21, 2025; Oct. 1, 2025>
(8) Where the Minister of Trade, Industry and Resources deems that the divulgence of national core technology under paragraphs (1), (5), and (6) is likely to have a material impact on national security, he or she may issue an order for such measures as suspension or prohibition of cross-border acquisition, merger, etc. and restoration to the original state after consultation with the head of the relevant central administrative agency and deliberation by the Committee. <Amended on Mar. 23, 2013; Aug. 20, 2019; Jan. 21, 2025; Oct. 1, 2025>
(9) Where a person who intends to engage in cross-border acquisition, merger, etc. under paragraphs (1), (5), and (6) has any questions about the following matters with respect to the relevant cross-border acquisition, merger, etc., he or she may request the Minister of Trade, Industry and Resources to conduct a prior review, as prescribed by Presidential Decree: <Amended on Mar. 23, 2013; Aug. 20, 2019; Jan. 21, 2025; Oct. 1, 2025>
1. Whether the national core technology in question is related to national security;
2. Whether the cross-border acquisition, merger, etc. in question is subject to approval under paragraph (1) or subject to reporting under paragraphs (5) and (6);
3. Other questionable matters regarding the relevant cross-border acquisition, merger, etc.
(10) Where a target institution holding national core technology falls under any of the following cases, the Minister of Trade, Industry and Resources may order such institution to take necessary measures, such as suspension or prohibition of cross-border acquisition, merger, etc. and restoration to the original state; provided, in cases falling under subparagraph 2, he or she shall request the head of an intelligence and investigation agency to conduct investigation and have the findings thereof reported to the Committee for deliberation: <Amended on Jan. 21, 2025; Oct. 1, 2025>
1. Where it proceeds with cross-border acquisition, merger, etc. without obtaining approval under paragraph (1) or filing a report under paragraph (5);
2. Where it proceeds with cross-border acquisition, merger, etc. after obtaining approval under paragraph (1) or making a report under paragraph (5) by fraud or other improper means.
(11) The Committee may listen to the opinions of target institutions in any of the following cases: <Amended on Aug. 20, 2019; Jan. 21, 2025>
1. Deliberation on applications for approval under paragraph (1);
1-2 Deliberation on reporting under paragraphs (5) and (6);
2. Deliberation on suspension, prohibition, restoration to the original state, etc. regarding cross-border acquisition, merger, etc. which has a material impact on national security under paragraph (8);
3. Deliberation on any loss sustained by a target institution as a result of the measures under paragraph (8);
4. Deliberation on suspension or prohibition of cross-border acquisition, merger, etc., restoration to the original state, etc. regarding improper approval or false reporting under paragraph (10).
(12) The Minister of Trade, Industry and Resources may require specialized committees by field to review an application for approval under paragraph (1) or reporting under paragraphs (5) and (6), and may request the head of a relevant central administrative agency or the head of a target institution to provide necessary cooperation such as submission of data. In such cases, the head of the relevant central administrative agency or the head of the target institution shall cooperate unless there is a compelling reason not to do so. <Amended on Mar. 23, 2013; Aug. 20, 2019; Jan. 21, 2025; Oct. 1, 2025>
(13) Details regarding approval under paragraph (1), reporting under paragraphs (2), (5), and (6), and measures such as suspension, prohibition, restoration to the original state, etc. under paragraphs (8) and (10) and procedures therefor shall be prescribed by Presidential Decree. <Amended on Aug. 20, 2019; Jan. 21, 2025>
[This Article Added on Jul. 25, 2011]