More firms subject to strict antitrust rules in April

Published : May 2, 2016 - 13:58 Updated : May 2, 2016 - 13:58

The number of Korean business groups' affiliates subject to restrictions on mutual investments and loan guarantees rose in April 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 1,741 on Monday, up five from the previous month.

Fair Trade Commission in Sejong City (Yonhap)

Such affiliates are owned by the country's 66 largest business groups.

Last month, the FTC added six companies including Kakao, the operator of Korea's top mobile messenger KakaoTalk, to its watch list, with two removed.

Ten business groups, including Samsung, Lotte and Kakao, increased the number of affiliates through stake purchases and establishments.

On the other hand, seven business groups, including Shinsegae, POSCO and GS, had fewer companies on the FTC's updated list.

Under Korea's fair trade law, the affiliates of large business groups with assets of 5 trillion won ($4.37 billion) or more are restricted from making equity investments in affiliates or offering loan guarantees to one another. (Yonhap)