FTC Survey Shows Increase of Seven Conglomerate-Affiliated Companies


By Kang Yoon-seung

SEOUL, Aug. 8 (Yonhap) — According to the Fair Trade Commission (FTC), the number of conglomerate-affiliated firms under stricter supervision has risen by seven from the previous count.

The total number of conglomerates is now 81, after Daewoo Shipbuilding & Marine Engineering Co. was taken over by Hanwha Group. These companies have 3,083 affiliates as of last Wednesday, up from the previous 3,076. The FTC removed 59 firms and added 66 others to the list.

Hanwha Group and POSCO Group have gained nine and six affiliates respectively, while Sampyo Group, a construction materials giant, has shed 20 affiliates. The FTC noted that some conglomerates have been actively expanding their power generation and energy businesses by creating new firms or buying up shares.

South Korean law states that conglomerates with assets of 5 trillion won (US$3.82 billion) or higher must reveal the status of their businesses, as well as information on major internal trades. Companies with assets of 10 trillion won or higher are subject to additional regulations, such as a ban on cross-shareholding and loan guarantees among affiliates.


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