FTC not to designate public firms as 30 biz conglomerates

The government has postponed plans to designate large public corporations competing with private firms on its list of the nation`s 30 leading conglomerates or ``chaebol.`` The two eligible corporations are the Korea Electric Power Corporation (KEPCO) and the Korea National Housing Corporation (KNHC). Current law disqualifies Korea Telecom from receiving that status. Analysts said the delay may mean that the government is backing down from its original blueprint for designating conglomerates.

The Fair Trade Commission (FTC)`s draft amendment to the enforcement decree of the Fair Trade Law was passed in a meeting of vice ministers Thursday. Pending cabinet approval, the revision will go into force on Apr. 1. An official of the commission said the government planned to include on its list of the 30 largest conglomerates those large-scale public corporations or subsidiaries capable of competing with private firms with three billion won or more in capital holdings. However, the FTC decided to put the plan on hold after the ministry of planning and budget announced plans to privatize, consolidate or streamline the affiliates of KEPCO by the end of the year, he said. The original plan could be revived and reviewed next year in the event that the planning and budget ministry`s blueprint is not implemented, the official added.

[Yonhap]