FTC-regulatory filing

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.

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