Loan guarantees among conglomerates' affiliates nearly double

SEOUL, Aug. 29 (Yonhap) -- Loan guarantees made among affiliates of South Korea's major conglomerates nearly doubled this year, the corporate watchdog said Monday.
   According to the Fair Trade Commission (FTC), loan guarantees made among the affiliates of the nation's 55 conglomerates came to 2.93 trillion won (US$2.72 billion) as of April 5, compared with 1.52 trillion won tallied a year earlier.
   The sharp increase is attributed to affiliates of three business groups being added to the government's watch list that limits mutual investments and loan guarantees. Eugene, Daesung and Taekwang were included in the list last April.
   Of the three, Eugene saw loan guarantees made among its affiliates reach the largest amount, 1.19 trillion won, followed by Daesung and Taekwang with 192.1 billion and 60 billion, respectively, the FTC said.
   Under the fair trade law, affiliates of large business groups with assets of 5 trillion won or more are limited from making equity investments and loan guarantees in one another. The rule is aimed at preventing the distortion of conglomerate governance structures.
   kokobj@yna.co.kr
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