(1) Where a company (hereafter referred to as "parent company") holds more than half of the total number of issued and outstanding shares in another company (hereafter referred to as "subsidiary company"), the subsidiary company may not acquire shares in the parent company, except in the following cases: <Amended by Act No. 6488, Jul. 24, 2001>
1. In cases of an all-inclusive exchange and all-inclusive transfer of shares, the merger of companies or the acquisition of the entire business of another company;
2. Where it is necessary to do so to achieve the objective in the course of exercising the rights of the company.
(2) In cases falling under paragraph (1), the subsidiary company shall dispose of the shares of the parent company within six months of the acquisition thereof.
(3) If a parent company and its subsidiary company in aggregate hold, or a subsidiary company by itself holds, more than half of the total number of issued and outstanding shares in another company, such another company shall be deemed a subsidiary company of the parent company for the purpose of this Act. <Amended by Act No. 6488, Jul. 24, 2001>[This Article Newly Inserted by Act No. 3724, Apr. 10, 1984]