1. Reason for proposal
The procedure of general holding companies and documents to be submitted to report the acquisition of stocks of small and medium enterprise startup investment companies and new technology business finance companies and investment status and details of financiers to small and medium enterprise startup investment companies and new technology business finance companies in accordance with Articles 20(4) and 20(5) of the Monopoly Regulation and Fair Trade Act (Act No. 17799, full revision on December 29, 2020) are prescribed. Likewise, the procedure for reporting the internal transactions of venture holding companies, procedure for prior request for establishment and conversion of venture holding companies, and documents to be submitted in accordance with the whole revision draft of the Enforcement Decree thereof (notification of legislation on June 4, 2021) and documents to be submitted and methods, etc. in relation to the annual business report of holding companies, etc. are improved.
2. Main content
A. Preparation of procedure for reporting the possession and operation of CVC of general holding companies
1) When general holding companies acquire or possess CVC stocks, the form of stock possession report and kinds of documents to be attached are prescribed (Establishment of Article 14(1) and Appendix Form 11 of the draft).
2) The reporting procedure and forms of documents to be submitted in relation to the liability for reporting of CVC investment status and funding details, etc. of general holding companies are prescribed (Establishment of Articles 14(1) through (2) and Appendix Forms 12 through 14 of the draft).
B. Preparation of procedure for reporting and requesting the internal transaction status of venture holding companies
1) The form for internal transaction status to be submitted together with the annual business report and preparation guideline is prepared for venture holding companies (Establishment of Article 11 and Appendix Form 10 of the draft).
2) The form for application to be submitted when requesting the establishment or conversion of venture holding companies is provided, and the kinds of documents to be attached are prescribed (Establishment of Article 15 through 18 and Appendix Form 15 of the draft).
C. Practicalization of documents to be submitted when reporting the business of holding companies and improvement of method of submission
1) A company that does not undergo external audit in accordance with the External Audit Act may submit a tax adjustment statement (or statement of accounts) instead of financial statements confirmed by a public accountant (Article 4(2) of the draft).
2) It is prescribed that holding companies may submit business report data in electronic document form with corporation signatures through enterprise group portal systems when submitting the annual business report (Establishment of proviso in Article 11 of the draft).
3) The preparation guideline and items of appendix form are clarified, amendments such as titles, terms, and provision numbers of acts and subordinate statutes are reflected to the notification to meet the revised upper acts and subordinate statutes, and terms of provisions are improved for easy understanding.
※ The full text of the draft of revision is available in the “Policy/System - Legislative/Administrative notification” menu in the website of the Fair Trade Commission (http://www.ftc.go.kr).
