South Korea’s antitrust watchdog said Tuesday that it has placed two more companies on its watch list that limits mutual investments and loan guarantees.
According to the Fair Trade Commission, the number of companies on the list stood at 1,580 from a total of 55 business groups as of Monday, compared with 1,578 affiliates a month earlier.
A total of 12 business groups, including SK and GS, added 17 affiliates through new business launches, purchases of shares and other corporate acquisitions, the FTC said.
Meanwhile, 15 companies from eight conglomerates such as CJ and Hyundai Department Store were excluded from the list due to such reasons as mergers and selling off of stakes.
Under Korea’s fair trade law, affiliates of large business groups with assets of 5 trillion won ($4.76 billion) or more are banned from making equity investments in one another. The rule is aimed at preventing the distortion of conglomerate governance structures.
(Yonhap News)
