KFTC Notes HYBE, with 33.9% Internal Transactions, as Company Requiring Ongoing Monitoring

The seven business groups newly designated this year as subject to disclosure (Hyundai Marine & Fire Insurance, Youngone, Daishin Securities, HYBE, Sono International, Wonik, Paradise) had a total internal transaction ratio of 6.0% across all domestic and overseas affiliates, with internal transaction amounts totaling 1.9 trillion won.

HYBE had the highest internal transaction ratio at 33.9%. HYBE also had the largest internal transaction amount at 700 billion won.

The KFTC stated, “It is difficult to conclude that a high internal transaction ratio and amount alone indicate a high likelihood of unfair internal transactions,” but added, “A positive correlation between the ownership stake of the controlling family and the internal transaction ratio continues to persist, so the need for monitoring is considerable.”