Number of firms on antitrust watch list unchanged in Aug.

SEOUL, Aug. 31 (Yonhap) -- The number of business group affiliates subject to restrictions on mutual investments and loan guarantees remained unchanged in August compared with a month earlier, the antitrust watchdog said Monday.

The Fair Trade Commission (FTC) said the number of firms on its watch list came in at 1,674 this month, as nine conglomerate affiliates were added while nine were removed. The companies belong to the country's 61 largest business groups.

Six business groups, including LG, Lotte and Shinsegae, had more companies on the FTC's updated list, while six others, including GS, CJ and Kumho Asiana, had fewer.

SK, Hansol and Hankook Tire had new units added and existing ones removed, according to the watchdog.

Of those added, five new companies were set up during the past month, while four others were acquired through stake purchases.

Of those removed, four were merged, three were sold in stake sales and two were liquidated.

Under South Korea's fair trade law, affiliates of large business groups with assets of 5 trillion won (US$4.2 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.

mil@yna.co.kr
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