Seoul’s Watchdog Looking Into Mid-Sized Firms for Undue Support

(Bloomberg) -- South Korea’s corporate watchdog is looking into unfair inter-subsidiary transactions of mid-sized enterprises, reported Yonhap News.

“We’re seriously monitoring undue intra-group dealings at mid-sized companies with assets worth or under five trillion won ($4.3 billion),” the Fair Trade Commission Chairwoman Joh Sung-wook was quoted as saying in an interview. “We can’t identify them now, but there are a couple we’re watching.”

The anti-trust watchdog has been cracking down on undue intra-group transactions that favor companies owned by the founding family members of large conglomerates, which can frequently be intended to facilitate ownership succession.

To contact the reporter on this story: Kanga Kong in Seoul at kkong50@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Siraj Datoo, Karthikeyan Sundaram

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