(1) The Fair Trade Commission shall designate a business group whose total assets calculated as prescribed by Presidential Decree are at least five trillion won as a business group subject to disclosure, as prescribed by Presidential Decree; and shall designate, among the designated business groups subject to disclosure, a business group whose total assets are at least the amount equivalent to 5/1000 of the gross domestic product as a business group subject to limitations on cross shareholding, as prescribed by Presidential Decree. In such cases, the Fair Trade Commission shall give notice of such designation to a domestic member company of a designated business group and a public interest corporation that is a related party to the same person who controls the company, as prescribed by Presidential Decree.
(2) Article 21 through 30 and 47 shall begin to apply from the date of receiving notice under the latter part of paragraph (1) (including notice of inclusion under Article 32(4)).
(3) Notwithstanding paragraph (2), where a company which receives notice as a domestic member company of a business group subject to limitations on cross shareholding following designation as a business group subject to limitations on cross shareholding under paragraph (1) or following inclusion in a domestic affiliate of a business group subject to limitations on cross shareholding under Article 32(1), violates Article 21(1) or (3) or 24 as at the time of receiving such notice, the following shall apply:
1. Where the company violates Article 21(1) or (3) (including where the company violates Article 21(3) as any company that issued shares acquired or owned by it is newly included in its domestic affiliates), that paragraph shall not apply for one year from the date of designation or inclusion;
2. Where the company violates Article 24 (including where the company violates that Article as any company receiving debt guarantees from it is newly included in its affiliates), that Article shall not apply for two years from the date of designation or inclusion; provided, Article 24 shall not apply by the date of completion of rehabilitation procedures, where rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act have been initiated for a company under the provision, with the exception of the subparagraphs, of this paragraph; and by the date of completion of rehabilitation procedures for a company receiving a debt guarantee, limited to the debt guarantee, where another company under the provision, with the exception of the subparagraphs, of this paragraph has a debt guarantee for the company for which rehabilitation procedures have been initiated.
(4) The Fair Trade Commission may request materials prescribed by Presidential Decree, such as the general status of a company, the composition of shareholders and executive officers of a company, the current status of related parties, and the current status of shareholdings, from a company or its related parties for designating a business group under paragraph (1).
(5) A domestic member company of a business group subject to disclosure (excluding a company that is in the process of liquidation or has been suspending its business for at least one year) shall be audited by a certified public accountant, and the Fair Trade Commission shall use the statement of financial position amended in accordance with the audit opinion of the certified public accountant. <Amended on Jan. 21, 2025>
(6) The standards and methods for calculating the amount equivalent to 5/1000 of the gross domestic product under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree.