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South Korean regulator fines SK Group for failure to sell brokerage stake

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South Korean regulator fines SK Group for failure to sell brokerage stake

South Korea's Fair Trade Commission fined conglomerate SK Group Ltd. 2.9 billion won for its failure to sell its 9.88% stake in SK Securities Co. Ltd. within a two-year grace period that expired in August 2017, Yonhap News Agency reported Feb. 1.

SK Group converted into a holding company in 2015 and was required to offload its stake in SK Securities by Aug. 1, 2017, to comply with a law that bars nonfinancial holding companies in South Korea from holding stakes in financial institutions. The group, however, violated the law since it could not sell the stake within the grace period, according to the report.

In addition to imposing the fine, the antitrust regulator ordered SK Group to sell its stake in the brokerage within one year.

While the conglomerate had entered into a contract in August 2017 to sell its stake in the brokerage to CAPE Investment & Securities Co. Ltd. unit Cape Investment, the contract was not followed through, according to the report.

As of Jan. 31, US$1 was equivalent to 1,068.64 South Korean won.