In acquiring shares in a Korean entity, foreign investors often neglect to take into consideration that their transactions might be subject to the filing of a report with the Korea Fair Trade Commission (the “KFTC”), especially when the contemplated transaction is not a 100% acquisition. In fact, a transaction which does not involve a merger or 100% acquisition, such as the acquisition of a minority shareholding or establishment of a joint venture, may become subject to the filing of a ‘business combination’ report with the KFTC, a failure of which may lead to an administrative fine as well as the KFTC’s order of corrective measures such as, among others, the prohibition of the transaction, a disposition of shares (ownership interest acquired) or a transfer of business.