April 19, 2024
Industrials
FTC to review chaebol transactions since 2012
[THE INVESTOR] South Korea’s antitrust agency said on March 27 it will review transactions of conglomerates for trade practices that gave unfair profits to their chiefs and owner families.
The review by Fair Trade Commission concerns 225 affiliates of large business groups in which the stake held by the group chief and family exceed the threshold value stated in related regulations.
For listed companies, the threshold is 30 percent, and 20 percent for unlisted companies. In the review, the FTC plans to analyze the companies’ transactions since 2012.
The FTC plans to focus on uncovering any new measures designed to bypass regulations restricting transactions designed to give concerned individuals unfair profits.
“The so-called ‘toll duty’ that evades the law by including a new affiliate in existing deals between two affiliates and other new practices will be looked into,” FTC Vice Chairman Shin Young-son said.
Shin said that the review is being conducted on schedule, and that political issues have no bearing on it.
By Choi He-suk (cheesuk@heraldcorp.com)
The review by Fair Trade Commission concerns 225 affiliates of large business groups in which the stake held by the group chief and family exceed the threshold value stated in related regulations.
For listed companies, the threshold is 30 percent, and 20 percent for unlisted companies. In the review, the FTC plans to analyze the companies’ transactions since 2012.
The FTC plans to focus on uncovering any new measures designed to bypass regulations restricting transactions designed to give concerned individuals unfair profits.
“The so-called ‘toll duty’ that evades the law by including a new affiliate in existing deals between two affiliates and other new practices will be looked into,” FTC Vice Chairman Shin Young-son said.
Shin said that the review is being conducted on schedule, and that political issues have no bearing on it.
By Choi He-suk (cheesuk@heraldcorp.com)
