PROPOSED AMENDMENTS
South Korean regulator targets family-run firms
The steps are expected to be proposed to the National Assembly in November and are in line with campaign promises made by President Moon Jae-in
South Korea’s antitrust watchdog has proposed new rules for family-run conglomerates to make it harder for such businesses to muscle through their agendas at the expense of minority shareholders. The proposed amendments to existing regulations would require a newly created holding company to own at least 30% in an entity it wants to treat as a listed subsidiary and at least 50% for an unlisted unit, according to a draft of the Fair Trade Commission. The current minimums are 20% for listed and 40% for unlisted. The steps are expected to be proposed to the National Assembly in November and are in line with campaign promises made by President Moon Jae-in to reform chaebol. These family-owned conglomerates account for more than 50% of total market value on the benchmark Kospi index.
The draft amendments to the Monopoly Regulations and Fair Trade Act, first enacted in 1980, reflect changes in the country’s economic environment, the regulator said on Friday. "Conglomerates will find...
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