KOREAN BUSINESS GROUPS BARRED FROM USING EXCESS INVESTMENTS.

AsiaPulse News, August, 2002

SEOUL, Aug 29 Asia Pulse - Samsung, LG, SK and six other business groups have been barred by the Fair Trade Commission from exercising voting rights in those affiliates in which they made equity investments in excess of legal limit.

The legal limit is 25 percent of the net worth of each business group.

Excess investments in non-core operations came to 2.9 trillion won (US$2.2 billion), as of April 1, according to the FTC.

SK Group led in excess investment, with 1.8 trillion won, followed by Kumho with 345.8 billion won, Hyundai with 234.2 billion won, Doosan with 223.7 billion won, and LG with 154.3 billion won. Samsung is relatively small with 6 billion won, and Hanwha with 3.9 billion won.

The number of affiliates to have been affected...