[Monitor] Conglomerates collect nearly W1tr in trademark fees: FTC

Based on a survey of 57 conglomerates, 20 holding or representative firms received a total of 931.4 billion won ($866.2 million) in brand commission fees in 2016, the Fair Trade Commission said.

The FTC, which has been moving to tighten its grip over the brand commission fees, said Tuesday that it has prepared a revision to regulations that would require the holding companies to detail and publicize the collection status of their trademarks.

Brand commission payments, though not prohibited by the law, have often been criticized as an expedient way for conglomerate heads to rake in profits as there is no detailed criteria for the due amount.

Trademark fees usually account for 0.2-0.3 percent of a corresponding affiliate’s total sales, regardless of the net profit. (khnews@heraldcorp.com)