Korea & Company Sanctions on 'Violation of Holding Company Restrictions' by the Fair Trade Commission

Korea & Company has been sanctioned by the Fair Trade Commission for violating the holding company's ban on owning shares in the financial industry.

The FTC's first subcommittee voted for corrective action and a fine of 1 million won for violating Korea & Company's holding company conduct restrictions.

General holding company Korea & Company held 4,4452 shares of Yuanta Securities Co., a local company operating in the financial industry from April 2, 2021 to August 18, 2023.

This was acquired in 1999 by Atras BX, a subsidiary of Korea & Company, and became owned by Korea & Company when Atras BX was merged in April 2021.

The Fair Trade Act prohibits general holding companies from holding financial and insurance stocks and provides a two-year grace period for financial and insurance stocks held before the transition to a holding company, but Korea & Company was converted to a holding company in July 2013 and is not eligible.

In response, the Fair Trade Commission imposed corrective measures on Korea & Company for violating the Fair Trade Act's restriction on conduct of holding companies and others, and imposed fines by applying an 8% imposition standard rate, which is a "serious violation."