According to Article 523 of the Commercial Act, merging corporation can provide cash with new shares to the shareholders of merged corporation as consideration of merger. The cash which is to be paid by merging corporation to the shareholders of merged corporation plays an important role in coordinating the discord on allotment rate of new shares between the merging corporation and the merged corporation.
This study aims to see how to abolish or relax restrictions on the purpose or the limit of payment of the cash as a part of merger consideration. This paper makes a survey on each considerations of corporate restructuring measures, analyzes current provisions and regal theories of Korea and other countries on the cash as merger consideration, and finally presents some opinions upon abolishment of restriction on the purpose and relaxation of restriction on the limit of payment of the cash as merger consideration.