The number of business group affiliates subject to restrictions on mutual investments and loan guarantees declined in January from a month earlier, the antitrust watchdog said Thursday.

The Fair Trade Commission (FTC) said the number of corporate affiliates on the watch list stood at 1,700 as of Wednesday, down 46 from the previous month.

The decline was attributable to the exclusion of 34 affiliates of the crisis-ridden Tong Yang Group from the list as the conglomerate no longer met the business group designation standard, with some of its affiliates recently launching corporate rehabilitation process, the watchdog said.

Under South Korea's fair trade law, affiliates of large business groups with assets of 5 trillion won ($4.7 billion) or more are restricted from making equity investments or offering loan guarantees to one another. (Yonhap News)