November 29, 2024

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The photo shows Fair Trade Commission in the central administrative city of Sejong. (Yonhap)

South Korea’s Fair Trade Commission is seeking to set up a new team dedicated solely to overseeing merger and acquisition deals among local and foreign businesses, according to industry sources on Sunday.

The plan was reportedly included in a recent report on the antitrust watchdog’s reorganization submitted to the Ministry of the Interior and Safety.

Currently, the FTC is responsible for reviewing the legitimacy of M&A deals and other antitrust issues involving Korean companies if the deal size exceeds 200 billion won ($152 million).

The new plan follows an increasing number of large-scale international deals led by Korean companies especially in such fields as aviation, semiconductors and shipbuilding.

According to the FTC, the number of M&A review cases involving foreign entities almost tripled to 180 last year from 53 in 2009.

Adding to that is a lack of workforce in the review division. Last year alone, only eight employees handled some 1,113 cases.

With the new team, the overall screening process is expected to get speedier and more efficient.

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)