FTC probes LG for allegedly granting favors to affiliates

Korea’s antitrust regulator has launched a probe into LG Group for allegedly awarding lucrative contracts to affiliates, an official said Tuesday.

The investigation, by the Fair Trade Commission (FTC), is believed to be focusing on the conglomerate’s holding firm, LG Corp, LG Electronics and LG Chem.

The action is intended to determine whether the conglomerate was involved in systematically giving favors to affiliates at the expense of other companies.

LG Group insiders also confirmed that the commission is looking into various matters, though it did not provide any additional details.

Under the current law, violators could face fines of up to 5 percent of their annual sales.

Korea has been pushing to crack down on unfair business practices and to level the playing field for smaller firms.

Yonhap