Watchdog removes 29 firms from watch list

South Korea’s antitrust watchdog said Tuesday that it has taken 29 companies off the list that limits mutual investments and loan guarantees.

The Fair Trade Commission said the number of corporate affiliates on the list stood at 1,802 of 62 business groups, down from 1,831 tallied in the previous month.

The decline comes mostly from the exclusion of Eugene from the business groups subject to the restraints as the assets of its affiliates fell to 2.45 trillion won ($2.26 billion) following the sale of its stakes in Himart to Lotte Shopping. Eugene has 25 affiliates under its wing.

Under South Korea’s fair trade law, affiliates of large business groups with assets of 5 trillion won 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)