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South Korea: New legislation to break family-owned corporations’ market dominance

By  |  January 16, 2013
South Korea: New legislation to break family-owned corporations’ market dominance

South Korea’s Fair Trade Commission has announced it will prohibit family-owned businesses from what they consider as unfair trade practices, a ruling that now forbids the companies from offering project contracts to their affiliates. Additionally, the FTC announced it will also ban those companies from making cross-shareholding arrangements, which allow a few people with stake in a company to control decision-making at that company in addition to all of its subsidiaries. The measures are reportedly part of President-elect Park Geun-hye’s policy to reform the market, in which family-owned conglomerates are currently the economic dominators.

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    Full Content: Yonhap News Agency

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