'Look Again at Top-30 Rules'

A senior Ministry of Finance and Economy official said Tuesday that the system of controls on the 30 largest business groups may be overhauled in the second half of the year.

The antitrust controls, introduced in 1987, may be outdated as a way to prevent concentration of economic power by large businesses, Deputy Minister of Finance and Economy Kwon O-kyu said. "The economy was much smaller and it was also closed when the system was initiated," he said.

"There are a number of issues that make the system unsuitable for the more open and larger economy we have," Mr. Kwon said. "The government will review the system, including whether it is appropriate to reduce the number of controlled groups from the current 30."

Antitrust laws place restrictions on transactions, share ownership and debt guarantees for the top 30 business groups, commonly called chaebol. There have been many calls from the business community to relax the controls in order to reinvigorate Korea's business climate.

Mr. Kwon said any changes to the antitrust restrictions will be linked to efforts to improve responsible management and shareholder rights.

The government is also reported to be considering amendments to over 20 additional laws that levy restrictions based on the top 30-group designation.

The government may also shift a significant portion of business regulation to commercial and financial laws rather than antitrust statutes. Unfair relationships between a parent company and subsidiaries, for example, may be controlled by writing the rights and responsibilities of firms into the commercial law, another ministry official said.

While recognizing there are flaws in the system, the Fair Trade Commission said it is too early to seriously consider an overhaul. The current top 30 designation must be maintained, it said.

Mr. Kwon said amendments to the antitrust laws may come as early as this fall.

by Song Sang-hoon