SEOUL, Dec. 1 (Yonhap) — South Korea’s antitrust regulator said Wednesday it has decided to impose a combined 2.37 billion-won (US$2 million) fine on SYS Holdings and its affiliate for the parent company’s illegal support.
SYS Holdings, a leasing company, provided real estate collateral for free to its affiliate SYS Retail, an operator of an electronics goods discount outlet, between December 2009 and November 2021, according to the Fair Trade Commission (FTC).
The move helped SYS Retail easily take 195 rounds of low-interest rate loans worth a total of 659.5 billion won from two banks.
On the back of the lending, the loss-making company’s bottom line has improved since 2013.
The FTC said SYS Holdings’ practice helped SYS Retail avert the risk of bankruptcy and strengthen its market status, hampering market competition.