The government will ease regulations, and provide financial and tax incentives for M&As in order to stimulate M&A market. In a press briefing jointly held with the Ministry of Finance and Strategy and Financial Services Commission, the government announced measures to stimulate M&A market as part of efforts to realize President Park’s Three Year Plan for Economic Innovation.
The government will ease regulations that restrict the participants of M&As such as PEFs and strategic investors throughout the M&A cycle from fund creation and investment, management and sale stages.
The M&A fund within the Growth Ladder Fund will be expanded to 1 trillion won over the next 3 years, and those who carry out M&As through stock exchanges will be provided with increased tax incentives. Moreover, taxes for the merger of listed companies will be reduced.
Upon implementation of such measures, it is expected that startups and SMEs investment to grow which will eventually boost Korea’s economic growth further.