FTC to look into holding companies’ revenue sources

Korea’s corporate watchdog said Thursday it will look into holding companies’ revenue sources and other details as part of efforts to improve their management transparency.

The Fair Trade Commission (FTC) said it has asked a total of 62 holding companies to submit related data by mid-April.

The FTC plans to iron out a set of measures to boost their management transparency.

The number of holding companies in the country increased sharply last year amid government efforts to encourage businesses to adopt more transparent shareholding structures.

There were 193 holding firms last year, up from 162 a year earlier.

It marked the largest year on year rise since the holding company system was introduced in 1999 under the fair trade law, the FTC said.

Korea’s conglomerates have been under fire for years as they largely rely on controversial cross-shareholding arrangements among their affiliated companies to strengthen their owner families’ control over the entire group.

Yonhap