26 firms off antitrust watch list during May-July period
[THE INVESTOR] The number of Korean business groups’ affiliates under tight restrictions on mutual investment and loan guarantees fell sharply in the May-July period, the country’s corporate watchdog said on Aug. 2.
The Fair Trade Commission said 2,057 firms were on its watch list as of end-July, down 26 from three months earlier.
Under the Korean fair trade law, affiliates of large conglomerates with assets exceeding 10 trillion won (US$9.36 billion) are restricted from making equity investments among them or offering loan guarantees to each other.
In the latest update, Samsung Group retained the top rank with 62 affiliates under its wing worth a combined 399.2 trillion won in assets, followed by Hyundai Motor Group with 56 affiliates, or assets of 223 trillion won, and SK Group with 190 trillion won.
The number of conglomerates subject to stricter regulatory filings increased to 60 from 57, according to the FTC.
The conglomerates are required to make public major management decisions regarding their non-listed affiliates and are barred from engaging in excessive trading among affiliates.
By Song Seung-hyun and newswires (firstname.lastname@example.org)