On September 26, 2017, the State Council of South Korea approved an Amended Enforcement Decree of the Monopoly Regulation and Fair Trade Act ("Amended Decree"), which, among other amendments, revises the merger control thresholds.
Currently, a transaction is reportable if one party's total amount of worldwide assets or turnover is equal to KRW200 billion (approximately €149.8 million/US$177.6 million) or more, and the other party's amount of its worldwide total assets or turnover is KRW20 billion (approximately €14.9 million/US$17.7 million) or more.
The Amended Decree raises the above thresholds to KRW300 billion (approximately €224.9 million/US$266.3 million) and KRW30 billion (approximately €22.4 million/US$26.6 million), respectively. This will reduce the number of notifiable transactions.
In addition, the threshold of the local nexus test has increased from KRW20 billion to KRW30 billion (approximately €22.4 million/US$26.6 million). The local nexus test applies, in addition to the above thresholds, if (i) both parties to the transaction are foreign companies (where each party had Korean sales of KRW20 billion), or (ii) one party subject to the reporting requirement is a domestic company and the other party is a foreign company (where the foreign company had Korean sales of KRW20 billion).
The Amended Decree entered into force on October 19, 2017.