Ministry of Commerce, Provisions for the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors

Promulgated: August 25 2011
Effective: September 1 2011

Main contents: The contents of the Provisions are largely similar to the Tentative Provisions on Matters Relevant to the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors issued earlier in the year, except for the addition of Article 9, which states that the determination as to whether an acquisition of a domestic enterprise by a foreign investor falls within the scope requiring a security review shall be made based on the substantive details and actual effect of the transaction. A foreign investor may not attempt to circumvent the security review by any means, including but not limited to holding on the behalf of another, a trust, multi-level reinvestment, lease, loan, control by agreement, offshore transaction or other such means.

Related legislation: Circular on the Establishment of a System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors, Feb 3 2011, CLP 2011 No.2 p.57; and Tentative Provisions on Matters Relevant to the Implementation of the System for Security Review of Acquisition of Domestic Enterprises by Foreign Investors, Mar 4 2011, CLP 2011 No.3 p.33