MagnaChip Sale Requires Korean Government's Approval
The OLED display driver IC technology of MagnaChip, which is planning to sell itself to Chinese private equity firm Wise Road Capital, has been designated as a national core technology of South Korea. A cross-border M&A of a South Korean company that has a national core technology requires a government approval. The South Korean government is going to initiate related procedures soon.
Earlier, it was predicted that the sale would be done smoothly. This is because the OLED display driver IC technology of MagnaChip is not classified as an advanced technology in most cases.
However, the Committee on Foreign Investment in the United States initiated its examination last month and the prediction of the likelihood is now more difficult. The US$1.4 billion deal now requires an approval from each of the U.S. and South Korean governments and the U.S. government’s decision is likely to act as a decisive factor.