Four South Korean firms gained government approval to carry out their voluntary corporate restructuring through fast-track legal and administrative procedures, the industry ministry said Wednesday.
The Ministry of Trade, Industry and Energy said a government panel chose four companies — including Taekyung Heavy Industries Co., a midsized ship materials manufacturer — to endorse their proposed restructuring efforts to boost competitiveness.
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Mytec Co., a vessel air cooler manufacturing firm, Hyundai Technology & Machinery Co., a construction machinery company, and Usis Co., a offshore plant designing service provider, were also on the list.
With the latest four firms, there are now 24 companies subject to the so-called “one-shot” act, as part of the Seoul government’s efforts to speed up corporate restructuring in struggling industries, including shipbuilding, steel and petrochemicals.
LG Chem, the country’s largest chemicals manufacturer, and Hanwha Chemical have also been included on the government-backed reform list.
The ministry said Taekyung Heavy will sell part of its ship material manufacturing lines and expand its business related to thermonuclear experimental reactor equipment, while Mytec and other selected companies will also make more efforts to diversify their business portfolios.
The law came into effect in August last year to help businesses conduct intracorporate mergers and spinoffs through simplified procedures that included exemptions from strict antitrust laws and financial market regulations. They will also be given tax benefits, and subsidies for research and development on corporate restructuring.
Under the new law, the companies that want to benefit from the fast-track corporate restructuring procedures are required to win government approval. (Yonhap)