Conglomerates tightening grip over affiliates via non-profit foundations: FTC
SEJONG, July 1 (Yonhap) -- South Korea's corporate watchdog said Sunday that the country's family-controlled business groups are strengthening their control over affiliates through non-profit foundations they control.
In December last year, the Fair Trade Commission (FTC) started an investigation into such organizations after foundations and organizations came under fire for their roles in expanding business group owners' control over various companies.
According to the FTC, 51 conglomerates subject to a slew of strict regulations had set up 165 foundations with average assets of 123 billion won (US$110 million) by the end of 2016.
The corporate watchdog said that group founding family members, heads of affiliated companies and related parties took board seats at 138 foundations.
Sixty-six non-profit organizations, or 40 percent, hold stocks in 119 companies affiliated with the conglomerates, accounting for 74 percent of stocks held by such organizations as assets.
In a meeting with chiefs of the country's top five conglomerates in November last year, FTC Chairman Kim Sang-jo said the corporate watchdog would look at non-profit foundations run by large conglomerates.
Meanwhile, the government is moving to revise relevant laws to ban these organizations from wielding voting rights in group affiliates.
sam@yna.co.kr
(END)
-
(Yonhap Interview) Fintech startup AIM aims to bring professional wealth services to ordinary investors
-
N.K. leader declares victory in fight against COVID-19: state media
-
N. Korea appears to release border dam water without prior notice: official
-
Yoon hails launch of country's 1st lunar orbiter
-
Gov't, ruling party to push for regulatory reforms
-
(Yonhap Interview) Fintech startup AIM aims to bring professional wealth services to ordinary investors
-
7 dead, 6 missing in heaviest rainfall in 80 years
-
(5th LD) 8 dead, 7 missing in record rainfall in Seoul, surrounding areas
-
N. Korea appears to release border dam water without prior notice: official
-
(LEAD) 7 dead, 6 missing in heaviest rainfall in 80 years
-
N.K. leader declares victory in fight against COVID-19: state media
-
Seoul to build deep underground rainwater tunnels in 6 flood-prone areas
-
Heavy rain casualties rise to 11 deaths, 8 missing
-
(LEAD) China says S. Korea has vowed to limit THAAD operation, heralding continued diplomatic row
-
(2nd LD) Unification ministry expresses regret over 'groundless claims' on origin of its COVID-19 outbreak