• SK FTC issued a corrective order to K Cube Holdings, an affiliate of Kakao Co. Ltd, for violating restrictions on voting rights of financial companies and insurance companies.

Violations

• Rules state that a company that belongs to a business group subject to cross-investment restrictions, and engages in the financial or insurance business, cannot exercise its voting rights on the stocks of domestic affiliates that it acquires or owns.
• K Cube had exercised its voting rights on the stocks of Kakao, which was in contravention of articles 11, 16 and 66 of the monopoly regulation and fair trade act.
• As there was one decision in which the result of the decision was reversed due to the exercise of K Cube's voting rights, it was deemed that the violation was serious.
• A prohibition order was issued to prevent similar acts in future, and a complaint filed.