South Korea’s Fair Trade Commission (KFTC) reviewed 798 merger cases in 2024, representing a 13.9% decline from the previous year due to expanded exemptions for low-risk transactions. The total transaction value also dropped by 35.9% to KRW 276 trillion, partly due to the absence of large-scale international mergers.
Key Trends in 2024:
- Domestic vs. Foreign Mergers: Domestic firms accounted for 622 mergers (77.9% of total cases) with a combined value of KRW 55 trillion, while foreign-led mergers totaled 176 cases, valued at KRW 221 trillion.
- Industry Breakdown: Manufacturing saw 301 mergers (37.7%), with activity in eco-friendly energy, semiconductors, and medical sectors. The services sector led with 497 mergers (62.3%), particularly in finance, IT, and media.
- Review Outcomes: KFTC conducted in-depth reviews on 36 cases, imposing corrective actions on two high-risk mergers—HD Hyundai’s acquisition of STX Heavy Industries and Kakao’s acquisition of SM Entertainment. One deal, Megastudy’s acquisition of Gongdangi, was blocked.
To enhance regulatory efficiency, KFTC introduced digital filing systems, pre-review procedures, and modernized standards for assessing mergers in emerging industries like AI. It plans to continue streamlining reviews for low-risk deals while scrutinizing mergers that may stifle innovation or harm consumers.
