(1) No domestic member company of a business group subject to limitations on cross shareholding which engages in financial business or insurance business shall exercise its voting rights in shares of its domestic affiliates that it has acquired or owned; provided, this shall not apply in any of the following cases:
1. Where such company acquires or owns the relevant shares to engage in financial business or insurance business;
2. Where such company acquires or owns the relevant shares by obtaining approval, etc. under the Insurance Business Act, etc. to efficiently operate and manage insured assets;
3. Where a resolution is adopted on any of the following matters at a general meeting of shareholders of the relevant domestic affiliate (limited to a listed corporation); in such cases, the number of voting shares out of the shares of the affiliate shall not exceed 15/100 of the total number of shares (excluding the number of non-voting shares under Article 344-3(1) and 369(2) and (3) of the Commercial Act; hereafter in this Article, the same shall apply) issued by the affiliate, including the number of shares that can be exercised by persons other than those prescribed by Presidential Decree from among related parties to the affiliate:a. Appointment or dismissal of an executive officer;b. Amendment to the articles of incorporation;c. Merger of the affiliate with another company or transfer of all or substantial part of its business to another company; provided, this shall not apply where the other company is an affiliate.
(2) No public interest corporation (referring to a public interest corporation, etc. under Article 16 of the Inheritance Tax and Gift Tax Act; hereinafter the same shall apply) that is a related party to the same person who controls a member company of a business group subject to limitations on cross shareholding shall exercise voting rights in the shares of a domestic affiliate controlled by the same person among the shares that such corporation has acquired or owned; provided, this shall not apply in any of the following cases:
1. Where a public interest corporation owns the total number of shares issued by the relevant domestic affiliate;
2. Where a resolution is adopted on any of the following matters at a general meeting of shareholders of the relevant domestic affiliate (limited to a listed corporation); in such cases, the number of voting shares out of the shares of the affiliate shall not exceed 15/100 of the total number of shares issued by the affiliate, including the number of shares that can be exercised by persons other than those prescribed by Presidential Decree from among related parties to the affiliate:a. Appointment or dismissal of an executive officer;b. Amendment to the articles of incorporation;c. Merger of the affiliate with another company or transfer of all or substantial part of its business to another company; provided, this shall not apply where the other company is an affiliate.