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Conglomerates' bid to ease commerce, finance separation should be 'last resort': FTC

Published: 23 Nov. 2025, 12:32

JIN MIN-JI
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Fair Trade Commission (FTC) chairperson Ju Biung-ghi speaks during a press conference held at the government complex in Sejong on Nov. 21. [FTC]

Relaxing Korea’s longstanding separation of commerce and finance would be a last resort measure to meet conglomerates’ calls for greater investment in the booming AI and semiconductor sectors, said the Fair Trade Commission (FTC) on Friday.

“This regulatory framework has been in place for decades,” said Ju Biung-ghi, chairperson at the antitrust regulator, to reporters following a press conference which took place at the government complex in Sejong on Friday. “Changing this framework simply because of a few individual cases requires extreme caution, as uncertainty in the industry is also strong. Any change must have a clear and compelling reason.”

Ju’s remarks follow SK Group Chairman Chey Tae-won’s comments on the need for regulatory relaxation that would enable conglomerates to pour larger investments into high-tech strategic industries like chips in the form of funds to stay ahead in global economic competition. Chey said that the 150 trillion won ($102 billion) National Growth Fund — to be used in high-tech strategic industries over the next five years — simply isn’t enough.

Korea prevents industrial capital, such as that of large corporations, from managing financial companies like banks, and constrains the operation of funds to prevent conflicts of interest and reduce systematic risk. However, companies have signaled the need to relax this regulation, arguing that they need more capital to facilitate massive investments in advanced technologies, similar to how U.S. tech giants are investing trillions of dollars into technology and building related infrastructure by raising capital through banks.

The discussion began in October, when President Lee Jae Myung ordered a review of relaxing regulations within the scope of safeguards while ensuring safety from monopolistic practices. Finance Minister Koo Yun-cheol reiterated this stance on Wednesday, saying the discussion could be held within a scope that does not undermine the fundamental spirit of the law.

“The most important question is how we can stimulate investment in advanced strategic industries. If easing the separation of finance and industry proves necessary as one way to achieve that, we can consider the option,” Ju said, but added, "When companies reinvest the earnings at their own responsibility, that is when the most accountable and risk-minimizing investments can be made. That is self-evident.”

Ju also warned stronger regulatory measures in response to Chey’s remarks on the need to revisit aspects of the Fair Trade Act regulating companies by size, as Korea is no longer in the era of rapid growth.

“Conglomerates like Samsung Electronics and SK hynix have achieved tremendous growth under the current regulatory framework. If the existing regulations on conglomerates aren’t functioning as intended, then they should be strengthened, and corporate transparency — including disclosure requirements — must be further reinforced,” Ju added.

The FTC reaffirmed that, in line with the pledge outlined in the U.S. fact sheet, Korea will not discriminate against foreign companies in the pending online platform regulations.

“We are working to improve the system so that effective and timely measures can be taken in the rapidly changing platform market,” Ju said. But he admitted that “it is true that there are still trade-related issues that make progress difficult.”

The regulation on online platforms has been met with strong backlash by the U.S., which points it as one of the key nontariff barriers against the country. Tech giants like Google, Apple and Meta argue that the regulation disproportionately impacts them.

BY JIN MIN-JI [[email protected]]