South Korea’s antitrust regulator has launched a probe into LG Group for allegedly awarding lucrative contracts to their affiliates, an official said on March 19.
The investigation, by the Fair Trade Commission, is believed to be focusing on the conglomerate’s holding firm LG Corp., LG Electronics and LG Chem.
The action is intended to determine if the conglomerate was involved in systematically giving favors to affiliates at the expense of other companies.
“Such actions undermine open competition and do not help the free market,” a FTC official said.
LG insiders also confirmed that the commission is looming into various matters, though not providing any further details.
Under the current law, violators could face fines of up to 5 percent of their annual sales.
By Ram Garikipati and newswires (email@example.com)