The number of conglomerate affiliates subject to regulations on private benefit appropriation exceeds 1,000

According to an analysis released by the Fair Trade Commission on the 3rd, the number of companies subject to regulations on private gain appropriation surpassed 1,000 for the first time this year, reaching 1,047. This is the result of expanded regulatory scope aimed at monitoring unfair internal transactions such as the concentration of work orders to the family of the owner. This year, among 102 conglomerate groups subject to disclosure with assets of 5 trillion won or more, 89 groups with an owner and 3,293 affiliated companies were analyzed. Of these, 91 companies from eight groups newly included in the conglomerate groups this year had a significant impact, and in particular, it was found that Line, Daemyung Chemical, Woongjin, Iljin Global, and Hyesung increased the number of companies subject to regulation. The FTC also said that the use of stockbased compensation among conglomerate groups has increased significantly. Stock grant agreements signed last year totaled 585 cases, up 65.7% from the previous year, with Samsung, SK, Hanwha, Doosan, and Amorepacific accounting for a large share. In addition, while circular shareholding has decreased significantly, the gap between the low direct ownership stakes and the high internal ownership stakes of the owner family still remains, according to the analysis.