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Since the enactment of the Monopoly Regulation and Fair Trade Act(hereinafter referred as the ¡°KFTA¡±) in 1980, a full-scale revision of the KFTA was submitted to the 20th National Assembly in order to respond to changes in the economic environment and market conditions and to meet the demands of the Fair Trade Market. The regulation of large business groups seems to be an important point among the issues of KFTA amendment in 2018. These impose restrictions on the establishment of Holding Company, limitations on Cross Shareholding and Circular Shareholding, debt guarantees for affiliates and disenfranchisement of voting rights of finance companies or insurance companies. The Fair Trade Commission¡¯s designation of Large Business Groups subject to restrictions on Cross Shareholdings is an important threshold for economic concentration. The designation of Large Business Groups has been changed many times, and revised dualized system, the Business Groups subject to disclosure and the Business Groups subject to Limitations on Cross Shareholding. The total assets of the Business Groups subject to disclosure are five trillion won or more, and among the designated group of business entities subject to disclosure, the Business Groups subject to Limitations on Cross Shareholding are designated as stipulated in the Presidential Decree. The KFTA revision criteria for Designation of Large Business Groups is related to the country¡¯s Gross Domestic Product. It is hard to expect t hat the amendment will be passed by the 20th National Assembly because of conflicting views on the parties. We look forward to the realization of the fundamental principles of a market economy that respects economic freedom and creativity, and the constitutional value of preventing market domination and abuse of economic power, and pursuing balanced growth and stability of the national economy through harmonization among economic actors.
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