Four South Korean conglomerates – Korea Investment, KT&G, Harim and KCC – newly joined the country’s large business club this year after each group’s total assets have increased to exceed $8.82 billion, according to the nation’s antitrust agency.
Following the upgrade, the four large conglomerates are put on the antitrust agency’s watch list, meaning that they will be subject to tougher antitrust regulations, such as prohibition of cross shareholding ties among affiliates, new circular equity investment, inter-affiliate debt guarantee and stricter disclosure rules under the Fair Trade Act. Financial and insurance units of these business groups will be allowed to exercise voting rights only in a restricted manner.
The Korea Fair Trade Commission announced Monday a total of 31 local business groups with over $8.82 billion in total assets as of the end of last year were designated as large conglomerates that are automatically included in its watch list for this year.
Full Content: Korea Biz Wire
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