The number of business group affiliates subject to restrictions on mutual investments and loan guarantees fell in June from a month earlier, the antitrust watchdog said Tuesday.
The Fair Trade Commission said the number of firms on its watchlist stood at 1,684 as of this month, down 23 from 1,707 on May 1. The firms belong to the country's 61 largest business groups.
A total of 17 companies were added, with 40 being removed as they were merged with other affiliates or sold off.
Ten business groups, including Samsung, SK, Hyundai Development, Hyundai Department Store and SeAH had more companies on the FTC's updated list, while Dongbu, CJ and Hankook Tire had less.
Of those added, 10 new companies were set up during the past month. Four others were added because conglomerates bought stakes in existing firms.
Under South Korea's fair trade law, affiliates of large business groups with assets of 5 trillion won ($4.5 billion) or more are restricted from making equity investments or offering loan guarantees to one another.
These rules are in place to prevent large companies from expanding their areas of business indiscriminately and to make certain they do not expose themselves to risks by overreaching their capabilities. (Yonhap)
