A set of financial regulations key to President Park Geun-hye’s economic democratization pledges was approved Monday by the parliamentary National Policy Committee’s review board, raising hopes for their legislation within the year.

Proposed revisions passed by the subcommittee include changes to the Fair Trade Act that will prevent conglomerates’ subsidiaries from making further investments in affiliates.

Once approved at the committee’s general meeting and the National Assembly’s plenary session, the measure will apply to conglomerates whose affiliates have more than 5 trillion won ($4.7 billion) combined assets.

However, it will not apply in unavoidable situations such as when companies go into court receivership and when the creditors give their approval during restructuring processes.

The board also approved the proposal to temporarily lower the maximum annual interest rate third-tier lenders can place on loans to 34.9 percent until the end of 2015. The rate ceiling is currently at 39 percent.

By Choi He-suk (cheesuk@heraldcorp.com)