[Edaily Reporter Shin Ha-yeon ] Ju Byung-ki, Chairman of the Fair Trade Commission, stated that raising the mandatory ownership stake requirement for listed subsidiaries and sub-subsidiaries of holding companies from the current 30% to 50% is necessary in light of the intent of the regulation, even if it causes difficulties in raising capital.

During the National Assembly’s Political Affairs Committee’s comprehensive parliamentary audit on the 21st, Chairman Ju responded to a point raised by Song Eun-seok, a member of the People Power Party, who argued that tightening regulations could stifle corporate fundraising. Chairman Ju acknowledged, “It is true that there will inevitably be difficulties in securing external funding,” but added, “Considering the intent behind the regulations on holding companies, we have no choice but to proceed this way.”

Chairman Ju explained, “Under a holding company structure, significant control can be exercised even with a small stake, so regulations are in place to minimize this,” adding, “The ownership requirement for unlisted companies is 50 percent, but a special exception was applied only to listed companies, lowering it to 30 percent.”

He continued, “Since listed companies should actually be held to a higher standard of accountability, we do not grant them special exemptions,” adding, “If we abolish the special exemption for listed companies and raise the ownership threshold to 50%, the incentive for dual listings—an issue highlighted by financial authorities—will also decrease.”

He also emphasized the need to strengthen sanctions to prevent repeated collusion. When Yu Dong-su, Chair of the Policy Committee, pointed out that Hansol Paper Co., Ltd.(213500)had been caught engaging in collusion nine times and asked whether institutional improvements were planned, Chair Ju stated, “Since South Korea is a developed nation, sanctions must be enforced effectively in accordance with developed-country standards,” adding, “Only by imposing penalties that significantly exceed the amount of unjust enrichment can we prevent illegal acts in advance.”

He also mentioned support measures for companies harmed by unfair practices. Chairman Ju highlighted the situation where affected companies cannot receive compensation through administrative fines, saying, “I believe that social justice regarding damages from unfair practices can be better upheld if litigation support or business management assistance is provided through a victim relief fund.”

Han Kyung-rok, CEO of Hansol Paper Co., Ltd., who appeared as a witness that day, responded regarding compensation for affected companies, “We will review the compensation procedures and take appropriate measures within our capacity.”

Regarding the preliminary review of Uber’s acquisition of Delivery Hero, Chairman Joo said, “We will closely examine and review the impact on small business owners, riders, and the competitive order.”

KoreanAirLines(003490)He also stated that the committee would continue to monitor concerns regarding monopolistic practices and fare increases following the merger between Asiana Airlines(020560) and another company. When Rep. Park Sang-hyuk of the Democratic Party of Korea pointed out the potential for infringement on consumer benefits, Chairman Joo replied, “We will keep this in mind,” adding, “We will continue to conduct thorough monitoring for each route where compliance oversight remains.”