The number of companies subject to regulatory supervision will nearly triple if the Korean Fair Trade Commission’s (KFTC) proposed stiffer guidelines on inter-affiliate trading are enforced, according to a corporate analysis on Wednesday, August 1.
CEO Score, a website that appraises conglomerates, projected 623 firms will come under monitoring for illegal internal business transactions under the suggested new rule, up 175.7% from the current 226 companies.
The KFTC announced last month that it will seek to revise the law on private contracts between affiliates, a wide practice in the corporate community in which companies do business with each other, funneling profits to owners of the business group while skirting fair competition.
Full Content: Korea Herald
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