Eugene affiliates taken off list banning mutual investments

The antitrust watchdog said yesterday it has taken 29 companies off a list that limits mutual investments and loan guarantees.

The Fair Trade Commission said the number of corporate affiliates on the list stood at 1,802 of 62 business groups, down from 1,831 tallied in the previous month.

The decline comes mostly from the exclusion of Eugene from the business groups subject to the restraints as the assets of its affiliates fell to 2.45 trillion won following the sale of its stakes in Hi-Mart to Lotte Shopping. Eugene has 25 affiliates under its wing.

Under the nation’s fair trade law, affiliates of large business groups with assets of 5 trillion won ($4.61 billion) or more are restricted from making equity investments in or offering loan guarantees to one another. The rule is aimed at preventing the distortion of conglomerate governance structures.