FTC to allow expedited review for a wider range of companies

The Fair Trade Commission (FTC) will speed up the business combination evaluation process for some companies.

A Fair Trade Commission branch in Busan on Aug. 24 [NEWS1]

The Fair Trade Commission (FTC) will speed up the business combination evaluation process for some companies.

The antitrust regulator said on Monday it will allow a wider range of companies to go through the simplified evaluation and declaration process.

Those that invest in private equity funds, situations in which an executive of one company is appointed an executive at another company following an investment in that company and cases of investment in land and warehouses will be qualified for expedited review.

Investing in private equity funds is considered a business combination as it involves the acquisition of a stake. The appointment of an executive from one company to be an executive of another could limit competition so it must be evaluated.

Simplified evaluations take 15 days.

The change will go into effect starting on Dec. 30.

The FTC’s goal through the revision is to raise efficiency of the evaluation system and to promote investment between and among firms.

The change is “designed to support corporate activities and their investment by speeding up the evaluation and approval” of companies that have a low chance of limiting market competition.

The number of cases the FTC evaluated jumped to 1,113 in 2021 from 701 in 2018.

It will permit project financing vehicles to go through simplified declaration before filing for a simplified business combination.

A project financing vehicle is a special purpose company established to efficiently manage major property businesses and to run projects formed by financial companies, according to the FTC.

The regulator added that it is in the process of advancing the online system for registering business combinations to facilitate the process for companies.

BY JIN MIN-JI [jin.minji@joongang.co.kr]