Innocean, GS E & C, etc. Only 5% of the voting rights of financial insurers

The outline of the revision of the entire law on fair trade that will be transformed into 38 years have come out. The Fair Trade Commission's Special Committee, a consultative body of the Fair Trade Commission, will significantly increase the number of regulated companies and limit the voting rights of affiliates held by major corporations, financial corporations and public companies to 5%. It is the intention to unfairly prevent from benefiting from the expansion of dominance through the work of the total number of households.

The Special Committee recommended the FTC's final report on the revision of the Fair Trade Anti-Trade Act. Professionals and lawyers, including 22 specialists, discussed the amendment of the fair trade law through 24 internal discussions and two public debates since its launch in March.

The special committee urged the government to tighten regulations to work in the final. Listed companies with more than 30% of the total number of family members and large unaffiliated subsidiaries of more than 20% are subject to regulation. The special committee proposed that the stake be reduced to 20% without listing or unlisted shares. There is no reason to change the regulations between listed and unlisted companies. In this way, 24 like Innocean, Hyundai Glovis, SKD & D and GS E & C will be followed by the Fair Trade Commission. In addition, the Company plans to regulate a subsidiary that holds more than 50% units in regulated affiliates. The FTC said that if the special proposal is made, the current number of regulated companies, which are 203, will increase to 441.

The special committee also recommended that "the total number of family members strengthens control of the group by means of financial affiliates "and that they restrict the voting rights of their affiliates. Currently, the financial and insurance companies of large companies can exercise their voting rights up to 15% with the participation of related parties only in the decision on the defense of management rights such as the appointment of non-financial corporations, the amendment of the Articles of Association and the merger. The Special Committee recommended that the limit on voting rights be reduced to 5% and that no merger between affiliates unrelated to hostile takeovers or mergers be allowed. At the end of March, the Samsung Samsung and Samsung Fire & Marine subsidiaries held respectively 8.27% and 1.45% of Samsung Electronics.

The Special Committee decided that the same regulations as the financial and insurance subsidiaries should be applied to public corporations. Professor Yoo Jin-soo, professor of economics at the Sookmyung Women's University, said, "The regulation of voting rights of financial and insurance companies is such that the total number of households should not increase their dominant position. "The money we put in it should not be used to expand our dominance."

The special commissioner suggested that the prosecution should review and maintain the current system in order to revise the ex-prison system, which would allow the prosecution to investigate cases of violation of the Fair Trade Act. There was not a member who completely abolished the opinion. The committee also presented the FTC with a plan to provide information to the prosecution investigation information obtained through the voluntary system of reduction and exemption from self-reporting. .

In addition, the Special Committee proposed that the criteria for the designation of a group of large corporations (limited investment group) totaling more than 10 trillion won be changed to 0.5% or more of the product. nominal gross domestic product (GDP). The recommendation also included measures to reduce the prevailing market operator's estimate of 50% to 40%.

Yoon Chang-hyun, professor of business administration at Seoul University, said, "Of course, illegal activities like running away must be eradicated." However, excessive regulation should be as cautious as it is difficult. He said. The FTC plans to prepare a government bill next month on the basis of this special recommendation and submit it to the National Assembly.

Hanam and Jang Won-suk reporter [email protected]