The review about organizational change of agricultural company

Modern society can be called the legal entity era, as the role and status of legal entities are gradually increasing in terms of not only wealth ownership but also economic and social activities and functions. In particular, the emergence and development of for-profit legal entity has brought about groundbreaking changes to the legal entity system, and the functions and roles of for-profit legal entity is becoming more profound. Since all agricultural company is company under the commercial law and is company established for profit(see article 169 of the commercial law), agricultural company is for-profit company. In return for the benefits of support from the state and local governments and tax reductions, agricultural company must conduct business within the scope of the law on fostering and supporting agricultural and fisheries business entities. Agricultural company is revitalizing agriculture, improving national health, and contributing to strengthening national competitiveness by exporting. As of 2022, the number of such law on fostering and supporting agricultural and fisheries business entities has increased by 1,835(12.9%) compared to 2021. Through organizational changes, organizational efficiency can be improved by reducing time and costs. According to the law on fostering and supporting agricultural and fisheries business entities, an agricultural partnership can be reorganized into an agricultural company, but an agricultural company cannot be reorganized into an agricultural partnership. This is not desirable because (i) it conflicts with the fact that an agricultural partnership with limited liability for its members and associate members can be reorganized into an agricultural company, (ii) it contrasts with the fact that a company under the commercial law, in which members or shareholders have limited liability under the cooperatives law, can be reorganized into a cooperative under the cooperatives law, in which members have limited liability, and (iii) reorganization in the United States, the United Kingdom, and Japan is much freer than in Korea. Therefore, this article examines the fact that an agricultural company must be reorganized into an agricultural partnership and the direction of revision of regulations related to reorganization of agricultural company.