Number of conglomerate-affiliated firms up 7 in latest survey: FTC

Korea's antitrust regulator said Tuesday the number of conglomerate-affiliated companies subject to tighter supervision increased by seven from the previous tally.

The total number of conglomerates came to 81, after Daewoo Shipbuilding Marine Engineering was removed following its takeover by Hanwha Group, according to the Fair Trade Commission (FTC).

The 81 conglomerates held 3,083 affiliates as of last Wednesday, rising from the previous tally of 3,076. The FTC removed 59 firms from the list, while adding 66 others.

Hanwha Group and POSCO Group added nine and six affiliates, respectively, while Sampyo Group, a construction materials giant, offloaded 20 affiliates, the regulator said.

"Some conglomerates have been actively establishing new firms or acquiring shares to expand their power generation and energy businesses," the FTC said.

Under Korean law, conglomerates with assets of 5 trillion won ($3.81 billion) or higher are obligated to disclose the status of their businesses, along with details of large-scale internal trade.

Those with assets of 10 trillion won or higher have more strings attached, including a ban on cross-shareholding and loan guarantees among affiliates. (Yonhap)