[THE INVESTOR] The number of Korean firms subject to restrictions on mutual investments and loan guarantees rose in July from a month earlier, the antitrust watchdog said on Aug. 1.

The Fair Trade Commission said the number of firms on its monthly watch list stood at 1,781 as of end-July, up 11 from the previous month.

The firms are affiliates of the country’s 65 largest business groups, including Samsung Group, Hyundai Motor Group and Kakao.

Nine business groups, including Hanwha, CJ and Kakao, put more affiliates under their wing through stake purchases and establishments.

On the other hand, eight conglomerates, including POSCO, GS and Doosan, had fewer companies on the FTC’s updated list.

Under South Korea‘s fair trade law, the affiliates of large business groups with assets of 5 trillion won (US$4.37 billion) or more are restricted from making equity investments in affiliates or offering loan guarantees to one another.

Starting in September, the antitrust watchdog will change the regulations to subject groups with 10 trillion won or larger assets to the restrictions, as part of its efforts to pave the way for local midsized business groups to conduct more activities.

As a result, the number of conglomerates subject to the tough FTC surveillance will drop to 28 from the current 65.

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