FTC puts another firm on watch list

Korea’s antitrust watchdog said Tuesday that it has placed one more company on its watch list that limits mutual investments and loan guarantees.

The Fair Trade Commission said the number of corporate affiliates on the list stood at 1,851 of 63 business groups this month, up from 1,850 tallied in the previous month.

Eight companies were newly added to the list as they were created or conglomerates bought stakes in other companies.

Meanwhile, seven firms were removed from the list, the watchdog noted.

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

The rule is aimed at preventing the distortion of conglomerate governance structures. (Yonhap News)