Number of firms on antitrust watchlist up in May

The number of business group affiliates subject to restrictions on mutual investments and loan guarantees rose in May from a month earlier, the antitrust watchdog said Friday.

The Fair Trade Commission (FTC) said the number of firms on its watch list stood at 1,707 as of this month, up 11 from 1,696 on April 1. The firms belong to the country's 61 largest business groups.

A total of 14 companies were added, with three being removed as they were merged with other affiliates or sold off.

Seven business groups, including SK, Nonghyup and Kumho Asiana, had more companies on the watch list, while KT, LS, and Daewoo Shipbuilding and Marine Engineering had fewer.

Of those added, 11 new companies were established during the past month. Three others were added because conglomerates bought stakes in existing firms.

Under South Korea's fair trade law, affiliates of large business groups with assets of 5 trillion won (US$4.65 billion) or more are restricted from making equity investments or offering loan guarantees to one another.

These rules are in place to prevent large companies from expanding their areas of business indiscriminately and to make certain they do not expose themselves to risks by overreaching their capabilities.

(Yonhap)