The number of business group affiliates subject to restrictions on mutual investments and loan guarantees edged up by one in January from a month earlier, South Korea's antitrust watchdog said Friday.

The Fair Trade Commission (FTC) said the overall number of firms on its watch list stood at 1,676 belonging to 63 business groups as of this month, from 1,675 tallied in early December.

A total of 18 firms -- including affiliates belonging to Lotte Group, the country's largest retail conglomerate, and No. 1 steelmaker POSCO -- made the list for the first time.

Companies were added because business groups took over shares or opted to create new companies from scratch, to better meet their respective conditions.

On the other hand, former companies of the Samsung and Doosan groups, as well as fixed line operator KT Corp., were taken off due to the selling of shares by the conglomerates and other liquidation processes. A number of companies belonging to Hyundai Motor Group, SK and GS groups also shrank through mergers and other sell-off arrangements.

Under South Korea's fair trade law, affiliates of large business groups with assets of 5 trillion won (US$4.6 billion) or more are restricted from making equity investments or offering loan guarantees to one another. (Yonhap)