[THE INVESTOR] The Trade Ministry reported on Oct. 11 that seven more South Korean companies are submitting their applications for voluntary corporate restructuring.

A government panel is set to hold a meeting Oct. 18 to decide whether to endorse proposed corporate restructuring moves by seven companies involved in such sectors as steel, shipbuilding equipment and materials, textile and solar power as reported by the ministry.

Last month, the government vowed to encourage local steel and petrochemical manufacturers to reduce output of oversupply items as part of its efforts to strengthen competitiveness of the local companies.

In August, the Special Act on the Corporate Revitalization, dubbed the “one-shot act,” came into effect to help businesses carry out an intra-corporate merger and spin-off through simplified procedures including exemptions from strict antitrust laws and financial market regulations.

Under the new law, the companies seeking to benefit from the fast track procedures are required to win government approval.

(theinvestor@heraldcorp.com)