S Korea proposes tighter rules for family-run 'chaebol' conglomerates

South Korean 10,000 won note is seen on U.S. 100 dollar notes in this picture illustration taken in Seoul, South Korea, December 15, 2015. REUTERS/Kim Hong-Ji

South Korea’s antitrust watchdog proposed new rules for family-run conglomerates to make it harder for such businesses to muscle through their agendas at the expense of minority shareholders.

The proposed amendments to existing regulations would require a newly created holding company to own at least 30 percent in an entity it wants to treat as a listed subsidiary and at least 50 percent for an unlisted unit, according to a draft the Fair Trade Commission released in Seoul. The current minimums are 20 percent for listed and 40 percent for unlisted.

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