(1) A company shall accumulate as its capital reserve, the surplus amount which arises from capital transactions, as determined by Presidential Decree.
(2) In cases of a merger, or a division or merger after division as provided for in Article 530-2, the earned surplus reserve and other legal reserves of the non-surviving or divided company may be succeeded by the surviving company or the newly incorporated company as a result of the merger, division, or merger after division.[This Article Wholly Amended by Act No. 10600, Apr. 14, 2011]