Mutual investment limited company group designation situation (as of May 15, 2019)
Table, ranking, number of companies, total assets, name of company group (unit: company, trillion won)
(Note) notation is “the same person”. A corporation / owner who controls a business group defined in Article 2 (definition) of the Fair Trade Act.
(Source) Korea Fair Trade Commission
Korea: No change in concentration on top senior executives-Cross-funded corporate group
May 17, 2019
Korea Fair Trade Commission: (Refer to the attached document)
On May 15, 34 corporate groups (so-called zaibatsu) were designated as “reciprocal investment limited corporate groups”.
Every year since 1987, the FTC has designated and announced business groups with assets of a certain size or more.
Specification criteria:
Total assets of 10 trillion won (about 920 billion yen, 1 won = about 0.092 yen) or more.
If designated as a “group of companies with mutual investment restriction”,
(1) Duties to announce internal transactions and stock ownership,
(2) Prohibition of unfair profit provision to general corporate group,
(3) Intra-group mutual investment, prohibition of new circulating investment,
(4) Prohibition of debt guarantee within the group,
(5) Restrictions on the exercise of voting rights to financial insurance.
The table below shows 34 business groups (1,421 affiliated companies) designated as “restricted mutual investment limited business groups”.
Two business groups increased from 2018, and Internet service giant Cacao was newly designated.
34 groups:
With the top five groups such as Samsung and Hyundai Motor occupying 60% of the total assets, the concentration of wealth in the upper groups has not changed.
-JETRO
https://www.jetro.go.jp/biznews/2019/05/900ee9ba63ce2d9c.html