Saenuri Party to Create Law to Tighten Control Over Conglomerates
Korea's ruling Saenuri Party is considering ways to tighten regulations on conglomerates, as part of its policy pledge of economic democratization.
An official from Park Geun-hye's presidential campaign says that, under the current legal system, it's difficult to effectively control family-owned conglomerates, known in Korea as chaebol, as regulations are dispersed in more than ten different laws, such as fair trade law and commercial law.
The official said this is why the party is carrying out discussions on creating a law that can integrate all these related regulations.
Once the law is enacted, conglomerates will be banned from setting up subsidiaries in sectors that are dominated by small and medium sized companies and will be required to increase the number of non-executive directors.
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