- Decrease in total merger reviews due to the expansion of exemptions for merger notifications -
- Active M&A activity in eco-friendly energy, semiconductor and automotive materials/components/equipment, and medical/beauty sectors -
In 2024, the Korea Fair Trade Commission (KFTC), chaired by Han Ki-jeong, reviewed a total of 798 corporate mergers, a decrease of 129 cases compared to the previous year. While global corporate merger activities showed a slight recovery, the total number of merger reviews decreased by 13.9% from the previous year due to the expansion of exemptions for merger notification requirements in August 2024. The decrease in the number of merger reviews and the absence of large-scale international mergers resulted in a total merger amount of 276 trillion KRW, a 35.9% decline from the previous year.
Breakdown by Company Type (Based on Reporting Company)
Among the total mergers, domestic companies were responsible for 622 cases, accounting for 77.9% of all reviews. The total merger value involving domestic companies was 55 trillion KRW, representing 20.0% of the overall merger value.
Among these, conglomerates (designated business groups) conducted 197 merger cases, making up 31.7% of domestic mergers, with a total merger value of 28 trillion KRW, which is 50.7% of the total domestic merger amount. By business group, SK Group (16 cases), Hyundai Motor Group (12 cases), and Hanwha Group (10 cases) reported the highest number of mergers.
Foreign companies were involved in 176 mergers, with a total merger value of 221 trillion KRW. Among these, the number of foreign mergers involving domestic companies remained unchanged from the previous year at 49 cases, but the total merger value increased from 8.4 trillion KRW to 10.5 trillion KRW.
Breakdown by Industry (Based on Target Company)
By industry, manufacturing accounted for 301 cases (37.7% of the total), while service industries accounted for 497 cases (62.3% of the total). In the manufacturing sector, the electrical and electronics industry recorded 94 cases, and the machinery and metal industry recorded 92 cases. In the service sector, the financial industry had the highest number of mergers (165 cases), followed by information and communications/broadcasting (61 cases).
Notably, in the manufacturing sector, there was active merger activity in eco-friendly energy (43 cases in renewable energy generation, 15 cases in secondary batteries), semiconductors and automotive-related materials/components/equipment (28 cases each), and medical/beauty (27 cases). In the service sector, aside from finance, mergers were most frequent in software development and supply (31 cases) and broadcasting/film content production and distribution (15 cases).
Breakdown by Merger Method
Regarding the methods of corporate mergers, the most common was stock acquisition (315 cases, 39.5%), followed by joint venture establishment (155 cases, 19.4%), mergers (131 cases, 16.4%), executive interlocking (104 cases, 13.0%), and business transfer (93 cases, 11.7%).
In-Depth Review and Regulatory Actions
The KFTC conducted in-depth reviews of 36 mergers that required careful examination of potential anti-competitive effects. Among these, two cases—HD Hyundai Heavy Industries' acquisition of STX Heavy Industries and Kakao's acquisition of SM Entertainment—were determined to have significant competition concerns and were subjected to corrective measures. Additionally, the Megastudy acquisition of Gongdangi was prohibited as corrective measures alone were deemed insufficient to address competition concerns.
Furthermore, the KFTC imposed fines totaling 4.2 billion KRW on 42 cases that violated merger notification requirements.
Policy Improvements and Future Plans
The KFTC has continuously improved the merger notification and review system to reduce administrative burdens and enhance efficiency. Last year, the KFTC expanded exemptions for merger notifications, enabled online submission of all merger reports (via mna.ftc.go.kr), introduced a pre-consultation process, and modernized merger review criteria to reflect the digital economy.
Recently, with the emergence of new types of mergers, such as the recruitment of key personnel in AI and other new industries, the KFTC is reviewing the need for further regulatory improvements to respond effectively to these trends.