Five South Korean firms received government approval to carry out their voluntary corporate restructuring through fast-track legal and administrative procedures, the industry ministry said Thursday.
The Ministry of Trade, Industry and Energy said a government panel chose five companies, including LG Siltron Inc., which manufactures wafers for semiconductors; ITC Co., a cable supplier; and Shin Pung Textile Co. to endorse their proposed restructuring efforts to boost competitiveness.
With the latest addition, there are now 37 companies subject to the "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 list.
The ministry said LG Siltron will sell its old lines and expand facilities for high-end semiconductors, while ITC and other selected companies will take steps 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.
Local companies that want to benefit from the fast-track corporate restructuring procedures are required to win government approval. (Yonhap)