Business
Commercial Act company forms with chaebol-focused fair-trade rules
The Commercial Act provides the corporate forms, with the chusik hoesa joint-stock company dominant. The Monopoly Regulation and Fair Trade Act imposes distinctive controls on large business groups.
Key rules
- Jurisdiction — Company registration through the court registry; competition enforcement by the Korea Fair Trade Commission.
Governing law
- Commercial Act of Korea
- Monopoly Regulation and Fair Trade Actfully amended 2020
- Foreign Investment Promotion Act
In practice
Rules aimed at large conglomerates restrict cross-shareholding, debt guarantees between affiliates and unfair internal dealing, and require disclosure of group structures. The 2020 fair-trade overhaul introduced private injunctive relief and expanded liability for intra-group transfers of value. Foreign investment is largely liberalised under the Foreign Investment Promotion Act, with notification rather than approval in most sectors, though defence, broadcasting and some network industries remain restricted. A minimum of one director suffices for smaller companies, with an audit committee required above thresholds.