(1) No domestic member company of a business group subject to disclosure (limited to a business group in which the same person is a natural person) shall make any undue benefits attributable to a related party (limited to the same person and his or her relatives; hereafter in this Article, the same shall apply), by doing any of the following acts with the related party, a domestic affiliate in which the same person alone or together with other related parties owns at least 20/100 of the total number of issued shares, or a domestic affiliate in which the affiliate alone owns more than 50/100 of the total number of issued shares; in such cases, the types of, and criteria for, the following acts shall be prescribed by Presidential Decree:
1. Making transactions under the terms and conditions that are substantially more advantageous than those applied or deemed to be applied to normal transactions;
2. Providing a business opportunity that will bring the company substantial benefits if it conducts such business directly or through any company controlled by it;
3. Making transactions in cash or other financial instruments with a related party under substantially advantageous terms and conditions;
4. Making transactions on a substantial scale without reasonable consideration of business ability, financial standing, credit rating, technological prowess, quality, price, or terms and conditions of the transaction, etc. or without comparison with other business entities.
(2) Paragraph (1)4 shall not apply to transactions prescribed by Presidential Decree as inevitable to achieve the purpose of the transactions, such as increase in corporate efficiency, security, and urgency.
(3) The other party to a transaction or the other party to be provided with a business opportunity under paragraph (1) shall neither make the transaction nor be provided with the business opportunity, if it might constitute any act prescribed in the subparagraphs of paragraph (1).
(4) No related party shall direct any third person to do any act prescribed in paragraph (1) or (3) or involve in such act.