Head of Fair Trade, Kim Sang-jo to break partition regulation… More enterprise M&A expected”
Kwon Dae-gyung | kwon213@ | 2018-03-02 11:14:10
18th Anniversary Innovation Growth 2018
(1) Let`s get rid of high-tech new industry regulations
Kim Sang-jo, chairman of the Fair Trade Commission, pointed out that he would drastically expand regulatory mergers and acquisitions (M & A) with bold regulatory reforms for innovation growth. In the past, it is difficult to respond properly in the era of the Fourth Industrial Revolution, where the cross-cutting regulatory system and the M & A standards are spreading across the heterogeneous industries and technologies.
"Big corporations, in the past, were not well aware of M & A as a means of exponential expansion," Kim said in an interview on the occasion of the 18th anniversary of the founding of the magazine, It is time to do it. "
Chairman Kim`s remarks were evaluated as an expression of willingness to reshape the M & A system, which is surrounded by a strict market definition and a barrier to restrict competition, in line with the merged industry era.
Meanwhile, Chairman Kim also said that it is difficult to respond properly to the era of the fourth industrial revolution with the past view that the M & A is regarded as `Scarlet Letter`. "It should not be done in the era of the fourth industrial revolution, But rather a management approach that should be encouraged. " In particular, Chairman Kim said, "Companies should secure the power of innovation through M & A, especially venture businesses should be a means of reward for their efforts." "He added.
Therefore, the FTC will support various forms of M & A. First of all, we decided to discard the announcement of the number of subsidiaries of cross-shareholding-restricted business group every month and to submit data that analyzes M & A characteristics every three months. It seems to be a stepping stone to take a closer look at M & A cases occurring between domestic and foreign industries and companies, and to reflect them in regulatory reforms and M & A evaluation standards.
"In the era of the Fourth Industrial Revolution, there are too many problems beyond the competence of the competitors in the past," Kim said. "If you judge the uncertainties of the future based on past standards, I can do it. " The trend of fair competition and M & A policy has changed in line with the new market environment.
However, Mr. Kim pointed out that there is a need for a more rigorous standard in recognizing exceptions related to fair competition and M & A. Kim said, "In the process of regulatory reform, we should not follow the old way of recognizing exceptions by realistic needs." Putting one exception in the end will eventually lead to the failure of regulatory principles and distrust of the people. "In particular, Chairman Kim explained, "There is a demand that we should not include an in-house venture in an affiliate. We should pay attention to defining such an exception." Instead of immediately recognizing the need for exception recognition, it is necessary to take a different approach to realizing the demand and analyzing it to reflect on the regulatory reform proposal or to achieve the practical effect of the requirement if it is difficult.
Meanwhile, Chairman Kim said that aggressive investigations and sanctions should be made on market-dominant abuse of Internet platform providers, including Google and Naver. Chairman Kim said, "In the early stage of the platform business, when a specific business is a monopoly, new entrants cannot enter, and the network effect is so strong." In view of the fact that the abuse of market dominant position, "He said. Kim said, "Whether a domestic company or an overseas company is actively investigating and sanctioning the abuse of dominance of platform operators," said Kim. "Some companies are considering whether to violate the Fair Trade Act."
Sejong city=Kwon Dae-gyung kwon213@dt.co.kr
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(1) Let`s get rid of high-tech new industry regulations
Kim Sang-jo, chairman of the Fair Trade Commission, pointed out that he would drastically expand regulatory mergers and acquisitions (M & A) with bold regulatory reforms for innovation growth. In the past, it is difficult to respond properly in the era of the Fourth Industrial Revolution, where the cross-cutting regulatory system and the M & A standards are spreading across the heterogeneous industries and technologies.
"Big corporations, in the past, were not well aware of M & A as a means of exponential expansion," Kim said in an interview on the occasion of the 18th anniversary of the founding of the magazine, It is time to do it. "
Chairman Kim`s remarks were evaluated as an expression of willingness to reshape the M & A system, which is surrounded by a strict market definition and a barrier to restrict competition, in line with the merged industry era.
Meanwhile, Chairman Kim also said that it is difficult to respond properly to the era of the fourth industrial revolution with the past view that the M & A is regarded as `Scarlet Letter`. "It should not be done in the era of the fourth industrial revolution, But rather a management approach that should be encouraged. " In particular, Chairman Kim said, "Companies should secure the power of innovation through M & A, especially venture businesses should be a means of reward for their efforts." "He added.
Therefore, the FTC will support various forms of M & A. First of all, we decided to discard the announcement of the number of subsidiaries of cross-shareholding-restricted business group every month and to submit data that analyzes M & A characteristics every three months. It seems to be a stepping stone to take a closer look at M & A cases occurring between domestic and foreign industries and companies, and to reflect them in regulatory reforms and M & A evaluation standards.
"In the era of the Fourth Industrial Revolution, there are too many problems beyond the competence of the competitors in the past," Kim said. "If you judge the uncertainties of the future based on past standards, I can do it. " The trend of fair competition and M & A policy has changed in line with the new market environment.
However, Mr. Kim pointed out that there is a need for a more rigorous standard in recognizing exceptions related to fair competition and M & A. Kim said, "In the process of regulatory reform, we should not follow the old way of recognizing exceptions by realistic needs." Putting one exception in the end will eventually lead to the failure of regulatory principles and distrust of the people. "In particular, Chairman Kim explained, "There is a demand that we should not include an in-house venture in an affiliate. We should pay attention to defining such an exception." Instead of immediately recognizing the need for exception recognition, it is necessary to take a different approach to realizing the demand and analyzing it to reflect on the regulatory reform proposal or to achieve the practical effect of the requirement if it is difficult.
Meanwhile, Chairman Kim said that aggressive investigations and sanctions should be made on market-dominant abuse of Internet platform providers, including Google and Naver. Chairman Kim said, "In the early stage of the platform business, when a specific business is a monopoly, new entrants cannot enter, and the network effect is so strong." In view of the fact that the abuse of market dominant position, "He said. Kim said, "Whether a domestic company or an overseas company is actively investigating and sanctioning the abuse of dominance of platform operators," said Kim. "Some companies are considering whether to violate the Fair Trade Act."
Sejong city=Kwon Dae-gyung kwon213@dt.co.kr