The number of South Korean business groups' affiliates subject to restrictions on mutual investments and loan guarantees declined in December from the previous month, the antitrust watchdog said Thursday.

The Fair Trade Commission said the number of firms on its watch list came in at 1,658 as of Thursday, down 10 from the previous month.

Such affiliates are owned by the country's 61 largest business groups.

Samsung, CJ, Doosan and nine other groups reduced the number of their affiliates through stake sales and mergers.

On the other hand, eight business groups, including Hanwha, Shinsegae and Hansol, had more 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 ($4.26 billion) or more are restricted from making equity investments in affiliates or offering loan guarantees to one another. (Yonhap)