The number of South Korean business groups’ affiliates under tight restrictions on mutual investment and loan guarantees rose in July from a month earlier, the corporate watchdog said Tuesday.
The Fair Trade Commission said 1,277 firms were on its monthly watch list as of end-July, up nine 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 ($8.5 billion) or more.
Eight groups, like SK and Hanwha, added a combined 16 more affiliates through stake purchases and new corporate establishments.
At the same time, four conglomerates, including GS and Doosan, reduced the number of their affiliates by a combined seven companies, the FTC said.
Under South Korea’s fair trade law, the affiliates of such large listed business groups are restricted from making equity investments in affiliates or offering loan guarantees to one another. (Yonhap)