Probe into in-house trading at conglomerates

The Fair Trade Commission (FTC) will begin an investigation into illegal in-house trading at the nation`s four largest conglomerates -- Hyundai, Samsung, LG and SK -- on August 16.

The FTC will also investigate second and third generation chaebol-owned venture companies, spinoff companies, and the conglomerates` restructuring headquarters on suspicions that they are being used to pass on illegal inheritance gifts.

The newly appointed Fair Trade Commissioner, Lee Nam-Ki, revealed at a press conference August 9 that the investigation will begin August 16 instead of August 31 as originally planned and will last from one month to 45 days.

Commissioner Lee asserted that second or third generation chaebol-owned venture firms will be investigated for traces of any illegal support from their parent companies. He stated that e-Samsung, which is owned by Lee Jae-Yong, son of Samsung Chairman Lee Kun-Hee, will be included in the investigation. Commissioner Lee further asserted that the investigation will be far more intensive than past probes and will include probes into spinoff companies and the abuse of power by the conglomerates` restructuring headquarters. The FTC plans to select 5 to 6 affiliates and 30 to 40 spinoff companies of the conglomerates for its investigation.