The range of relatives of the total number of conglomerates is narrowed from 6 blood relatives/4 blood relatives to 4 blood relatives/3 blood relatives.
As a result, the number of relatives who must submit and disclose various materials is expected to decrease by half from about 10,000 to 5,000.
However, if there is a person born out of wedlock legally recognized by the head of state, a new rule has been introduced to consider the birth father or mother as a relative.
The Fair Trade Commission announced that the amendment to the Enforcement Decree of the Fair Trade Act, which contained these contents, had passed the cabinet meeting.
The amendment will go into effect immediately after being approved by the President.
The existing Enforcement Decree of the Fair Trade Act stipulates the range of relatives included in the same person as 6th degree blood relatives and 4th degree relatives, and it has been pointed out that the burden on companies is excessive.
If the same person falsely submits or omits data related to relatives, he or she is subject to sanctions by the Fair Trade Commission, but it is not easy to learn more about distant relatives.
Accordingly, the FTC reduced the scope of kinship to 4th degree blood relatives and 3rd degree relatives, and stipulates that 5th and 6th degree relatives and 4th degree relatives are exceptionally included as relatives only when they own 1% or more of stocks in a company controlled by the same person. changed.
As of May this year, the number of relatives in 66 conglomerates with total heads is 10,026, but if the new regulations are applied, the number will decrease by 49.5% to 5,059.
However, the Fair Trade Commission newly established a rule that 'the same person, according to the Civil Act, the birth father and mother of a person born out of wedlock' is also regarded as a relative.
The purpose is to eliminate regulatory blind spots as they are the major shareholders of affiliates and sometimes subsidize the controlling power of the same person.
According to the revision of the enforcement ordinance, when designating a conglomerate group in May next year, Kim Hee-young, a live-in partner of SK Group Chairman Chey Tae-won, and Kim Hye-ran, known as the common-law spouse of SM Group Chairman Woo Oh-hyun, are expected to be recognized as relatives of Chairman Chey and Chairman Woo, respectively.
However, Mr. Kim is already included in SK's same-person related person as the representative of the TNC Foundation.
(Photo = Provided by Yonhap News TV, Yonhap News)