[
THE INVESTOR] The number of South Korean business groups‘ affiliates under tight restrictions on mutual investment and loan guarantees rose slightly in June from a month earlier, the corporate watchdog said on July 3.
The Fair Trade Commission said that 1,268 firms were on its monthly watch list as of end-June, up five from the previous month.
They are owned by the country’s 31 largest business groups, including
Samsung Group and
Hyundai Motor Group, with assets of 10 trillion won (US$8.5 billion) or more.
Ten groups, like
SK and
CJ, added a combined 16 more affiliates through stake purchases and new corporate establishments.
At the same time, seven conglomerates, including GS and
Doosan, reduced the number of affiliates by 11 companies from under their wings, the FTC said.
Under South Korea‘s fair trade law, the affiliates of such listed large business groups are restricted from making equity investments in affiliates or offering loan guarantees to one another.
By Alex Lee and newswires (
alexlee@heraldcorp.com)