Article 5(Scope of related persons) #
(1) "Persons in a relationship prescribed by Presidential Decree" in Article 8 (2) of the Act and "persons in a relationship prescribed by Presidential Decree" in Article 13 (2) of the Act mean persons in any of the following relationships with the principal (hereinafter referred to as "related persons"): <Amended on Dec. 28, 2021>
1. Where the principal is an individual, any of the following persons:
(a) A spouse (including a person in a de facto marital relationship), a blood relative within the sixth degree, or a relative by marriage within the fourth degree;
(b) A corporation (including an association or foundation without corporate personality; hereafter in this Article the same shall apply) that, alone or together with persons in any of the relationships referred to in item (a), has invested or contributed at least 30/100 of the capital or exercises de facto control over significant managerial matters or an executive officer of such corporation (referring to a director, auditor, general partner, or any other person who is in any de facto equivalent position; hereafter in this Article the same shall apply);
(c) A corporation that, alone or together with persons in any of the relationships referred to in item (a) or (b), has invested or contributed at least 30/100 of the capital or exercises de facto control over significant managerial matters or an executive officer of such corporation;
2. Where the principal is a corporation, any of the following persons:
(a) An executive officer;
(b) An affiliated company (referring to an affiliate defined in subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act) or an executive officer of such affiliated company;
(c) An individual who, alone or together with persons in any of the relationships referred to in the items of subparagraph 1, has invested in or contributed to the principal at least 30/100 of the capital or exercises de facto control over significant managerial matters related to the principal, or an individual, corporation or its executive officer having any of the relationships referred to in the items of subparagraph 1 with such individual;
(d) A corporation that, alone or together with persons in any of the relationships referred to in items (a) through (c), has invested or contributed at least 30/100 of the capital or exercises de facto control over significant managerial matters or an executive officer of such corporation.
(2) Cases in which the principal "exercises de facto control over significant managerial matters" in paragraph (1) mean any of the following:
1. Cases of paragraph (1) 1 (b): Where the principal, alone or together with persons falling under paragraph (1) 1 (a), is able to appoint a representative or an executive officer of the relevant corporation;
2. Cases of paragraph (1) 1 (c): Where the principal, alone or together with persons in any of the relationships referred to in paragraph (1) 1 (a) or (b), is able to appoint a representative or an executive officer of the relevant corporation;
3. Cases of paragraph (1) 2 (c): Where the principal, alone or together with persons in any of the relationships referred to in the items of paragraph (1) 1, is able to appoint the representative or an executive officer of the relevant corporation;
4. Cases of paragraph (1) 2 (d): Where the principal, alone or together with persons in any of the relationships referred to in paragraph (1) 2 (a) through (c), is able to appoint a representative or an executive officer of the relevant corporation;
5. Cases of a corporation that has transactions in funds, assets, goods, services, etc. or has debt guarantees or loan deals with the principal in excess of an ordinary scale.
(3) "Person ... intends to acquire de facto control" in Article 8 (2) of the Act means any of the following persons:
1. A person, other than a shareholder or equity holder, who intends to exercise voting rights equivalent to 30/100 or more by agreement with shareholders or equity holders;
2. A shareholder or equity holder who intends to jointly exercise voting rights equivalent to 30/100 or more by agreement with other shareholders or equity holders (excluding a person who has obtained approval of the largest investor under Article 6 (1) 1);
3. A person who intends to exercise de facto control in the decision-making process with regard to the appointment or dismissal of the chief executive officer or an executive officer or the transfer and take-over of business of the relevant corporation.