Thirty-five conglomerates earned 1.28 trillion won ($1.07 billion) last year by selling brand licenses to their affiliates, South Korea’s antitrust watchdog said, amid concerns that such transactions may help owners of conglomerates pocket profits.
Brand commission fees earned by 35 conglomerates last year rose 11.5 percent on-year, the Fair Trade Commission said in a statement.
LG and SK topped the list by charging their affiliates 268.4 billion won and 233.2 billion won, respectively, last year.
Hanwha, Lotte and CJ also earned 152.9 billion won, 103.2 billion won and 97.8 billion won each in brand license fees, according to the FTC. (Yonhap)