FTC to toughen penalties for regulatory filing violations by biz groups

By Kang Yoon-seung

SEOUL, Nov. 3 (Yonhap) -- South Korea's antitrust watchdog said Tuesday it will toughen penalties for business groups with assets of 5 trillion won (US$3.72 billion) or more for repeated violations of corporate disclosure rules.

The Fair Trade Commission (FTC) said the revised rules, which will take effect Monday, will raise fines by 10 percent for a first repeat violation, 30 percent for a second and 50 percent for a third or subsequent violation.

Under the law, large business groups are required to disclose major matters concerning unlisted affiliates and large-scale intragroup transactions.

As of May 1, 102 business groups met the criteria.

Under the current rules, fines are increased by 10 percent for four to six violations over a five-year period, including the year of inspection. A 20 percent increase applies to seven or more violations.

"The revision will strengthen market oversight (of business groups) and help effectively prevent the unfair concentration of economic power," the FTC said.

colin@yna.co.kr
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