The South Korean antitrust watchdog on Monday said it will lift the price ceiling on promotional giveaways, offered by companies to attract more customers, as part of its deregulation drive.

Under the current Fair Trade Commission guidelines, a business is not allowed to provide free gifts worth 20 million won ($16,780) or more to those who buy their goods. The price restriction was adopted in 1982 in order to keep customers from overspending.

Leading tire maker Hankook Tire Co. was ordered to cancel a promotional event that offered to give away a car worth 35 million won last year.

The FTC said it will remove the price limit around next month as customers are rarely tempted to make rash decisions and usually make smart choices after comparing prices over the Internet.

The removal will pave the way for new businesses to enter the market and help customers buy goods at cheaper prices, the watchdog said. (Yonhap)