Tong Yang Magic fined by FTC

2010-03-30 13:38

The Fair Trade Commission said yesterday it has fined oven maker Tong Yang Magic 173 million won ($143,700) for breaching cross-investment rules.
Under the current law, affiliates under designated business groups are not allowed to invest each other.
According to the watchdog, while Tong Yang Major owns 46.4 percent stake in Tong Yang Magic and Tong Yang Magic owns 1.05 percent stake in Hanil Synthetic Fiber, Tong Yang Major`s merge of Hanil Synthetic Fiber on May 13, 2008 generated cross-investment between Tong Yang Major and Tong Yang Magic under the Tong Yang Group.
The FTC said it had given Tong Yang Magic a six-month grace period until November but the two companies did not take any step to sell the related stakes.
With the fine, the FTC ordered Tong Yang Magic to sell the stake within six months.
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