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FTC probes chaebols¡¯ internal transactions

Posted December. 05, 2000 13:04,   


The Fair Trade Commission (FTC) has cracked down on four major Korean business groups -- Hyundai, Samsung, LG and SK -- to investigate for irregular internal transactions and found 2.5 trillion won worth of such transactions among group companies.

FTC chairman Lee Nam-Kee reported the findings asked by members of the National Assembly about the investigation on the groups' illegal transactions among subsidiaries.

Lee said that it was disclosed that large corporations helped their affiliated firms in improper ways by issuing black promissory notes or by channeling funds through offshore duty-free areas.

He also noted that all of the four chaebol groups were found to have engaged in unfair internal transactions as well as having two or three subsidiaries with no legal relationship.