From now on, the organized recruitment of key personnel from artificial intelligence (AI) startups, which involves taking over existing businesses, will also be subject to merger reporting and review.
The Fair Trade Commission announced that it has prepared a revised guideline for merger reporting, which will be open for public comment from September 9 to September 30.
Personnel acquisition transactions, known as Aqui-hire, involve signing contracts for personnel transfer and technology collaboration instead of typical business transfer agreements, effectively producing similar results. This practice has gained attention as global tech giants have been aggressively recruiting key personnel from AI startups.
The Fair Trade Commission clarified that such transactions could fall under the category of 'business transfers' as defined by the Fair Trade Act.
The revision allows for the consideration of organized personnel and the technology and knowledge they possess as essential components of a business, particularly in advanced industries.
If key personnel are transferred to the acquiring company and can continue the existing business of the transferring company, criteria will be established to interpret this as having acquired a 'substantial part' of the business.
The guidelines for determining the acquisition amount in personnel acquisition transactions and the interpretation of compliance actions will also be refined. This is due to the understanding that personnel acquisition transactions can be dispersed across various contracts, such as the release of non-compete agreements and technology collaboration, making it difficult to apply existing business transfer criteria directly.
This revision is being pursued based on information exchange with foreign competition authorities, including the European Union, Germany, and the United Kingdom. The Fair Trade Commission plans to review the comments received during the public notice period and finalize the revised guidelines after deliberation and resolution in a plenary session.
The Fair Trade Commission announced that it has prepared a revised guideline for merger reporting, which will be open for public comment from September 9 to September 30.
Personnel acquisition transactions, known as Aqui-hire, involve signing contracts for personnel transfer and technology collaboration instead of typical business transfer agreements, effectively producing similar results. This practice has gained attention as global tech giants have been aggressively recruiting key personnel from AI startups.
The Fair Trade Commission clarified that such transactions could fall under the category of 'business transfers' as defined by the Fair Trade Act.
The revision allows for the consideration of organized personnel and the technology and knowledge they possess as essential components of a business, particularly in advanced industries.
If key personnel are transferred to the acquiring company and can continue the existing business of the transferring company, criteria will be established to interpret this as having acquired a 'substantial part' of the business.
The guidelines for determining the acquisition amount in personnel acquisition transactions and the interpretation of compliance actions will also be refined. This is due to the understanding that personnel acquisition transactions can be dispersed across various contracts, such as the release of non-compete agreements and technology collaboration, making it difficult to apply existing business transfer criteria directly.
This revision is being pursued based on information exchange with foreign competition authorities, including the European Union, Germany, and the United Kingdom. The Fair Trade Commission plans to review the comments received during the public notice period and finalize the revised guidelines after deliberation and resolution in a plenary session.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.