South Korea Faces Policy Rift as Antitrust Watchdog Resists Deregulation

The rules, introduced in 1982, bar conglomerates from holding majority stakes in banks or other financial firms. They were created to stop major business groups from tapping financial subsidiaries as a source of improper funding. But momentum to revisit the decades-old framework has surged in recent weeks, per a statement circulated after Lee and OpenAI CEO Sam Altman met last month and agreed on the need for more flexible capital regulations that would support fast-expanding tech sectors such as AI.

Industry leaders argue the current restrictions make it difficult for companies like Samsung Electronics and SK hynix to secure timely funding for the massive investments required to meet growing global demand for memory chips used in AI data centers. Business groups say the existing system puts them at a disadvantage in the intensifying international race for AI leadership.

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KFTC Chairperson Ju Biung-ghi, however, remains unconvinced that easing the rules is the right path. He noted that the latest debate appears to tilt toward helping “certain companies,” which he described as “inappropriate.” “The principle of separating industrial and financial capital has remained in place for decades, so it is not proper for the KFTC to consider its deregulation due largely to complaints from only a few companies,” Ju told reporters during a press conference Friday.

Ju stressed that loosening the separation rule should be viewed only as a “last card,” and he urged policymakers to examine alternative measures before considering deregulation. He also emphasized the need for public agreement on any major shift in policy. “When pushing for the deregulatory drive, we need to build a social consensus and take a more cautious approach,” Ju said. “The problem is that companies keep making complaints on regulations.”

Source: Korea Times