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Number of firms on antitrust list dips in Feb.

All News 10:37 February 29, 2016

SEJONG, Feb. 29 (Yonhap) -- The number of South Korean business groups' affiliates subject to restrictions on mutual investments and loan guarantees dipped in February from the previous month, the antitrust watchdog said Monday.

The Fair Trade Commission (FTC) said the number of firms on its monthly watch list came in at 1,658 on Monday, down by two tallied on Feb. 1.

Such affiliates are owned by the country's 61 largest business groups.

A total of seven business groups, including Samsung, Hanwha and Booyoung increased the number of their affiliates through stake purchases and establishments.

On the other hand, eight business groups, such as SK, POSCO and Taeyoung had fewer companies on the FTC's updated list.

Under South Korea's fair trade law, the affiliates of large business groups with assets of 5 trillion won (US$4.02 billion) or more are restricted from making equity investments in affiliates or offering loan guarantees to one another.

These rules are in place to prevent large companies from expanding their areas of business indiscriminately and to make certain they do not expose themselves to risks by overreaching their capabilities.

yonngong@yna.co.kr
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