South Korea’s fifth-largest conglomerate Lotte Group was excluded from supervision by financial authorities, in line with its disposal of financial subsidiaries earlier this year, the Financial Services Commission said Wednesday.
With this, the number of those subject to financial supervision came to six -- Samsung, Hyundai Motor, Hanwha, Kyobo Life Insurance, Mirae Asset Financial Group and DB Group.
“The current regulations state that financial groups with assets of 5 trillion won ($4.28 billion) or more that operate two or more of the designated business categories will come under supervision,” the FSC said in its regular meeting.
Earlier this year, a consortium led by private equity MBK Partners acquired Lotte Card with 79.83 percent stake. JKL Partners became the largest partner of Lotte Insurance with 53.49 percent stake.
The given procedures were completed in October, leaving Lotte Group with only its credit loan subsidiaries among its conventional financial business.
The comprehensive supervision of financial groups was introduced in July last year, responding to customer demands for enhanced risk control.
By Bae Hyun-jung (email@example.com)