On May 7, 2026, the Fair Trade Commission (FTC) of South Korea took center stage with a series of sweeping announcements that are set to reshape the landscape for the nation’s largest business groups. In a move that highlights both regulatory vigilance and the evolving nature of corporate governance, the FTC revealed new disclosure requirements, the largest-ever roster of publicly disclosed business groups, and a dramatic shift in the internal structure of one of Korea’s major conglomerates, Daekwang Group.
The FTC’s latest initiative is the launch of a comprehensive “Large Business Group Disclosure Briefing,” scheduled for May 11 to 13 at the Korea Chamber of Commerce and Industry. According to 뉴시스 and 전자신문, this event will bring together representatives from a record 102 business groups—an all-time high, up from 92 last year—after the addition of 11 new groups and the exclusion of one, Youngwon. The briefing will focus on clarifying disclosure obligations under the Fair Trade Act, with special attention to large-scale internal transactions, disclosures for unlisted companies, and the changing nature of controlling persons within business groups.
This year’s briefing is particularly timely, as it follows the FTC’s April 30 designation of the 2026 business groups. For the first time, the FTC will deliver tailored guidance for groups that have recently switched their controlling person (known as “dongil-in”) from a corporate entity to a natural person. The most notable case is Coupang, where Kim Beom-seok has been designated as the controlling person—a landmark application of the legal entity controlling person exception first introduced in 2024. As 전자신문 reported, this change means Coupang will now face expanded disclosure requirements, including annual reports on overseas affiliates, details of internal transactions with related companies, and more rigorous scrutiny of unlisted company activities.
“If the controlling person is a natural person, disclosure obligations expand to include overseas affiliates’ general and shareholder status, internal transactions with affiliates with high special relationship shareholding, and unlisted company disclosures,” the FTC explained, according to 전자신문. Violations of these new obligations could result in corrective orders and fines of up to 100 million KRW, as outlined in the agency’s guidelines.
The FTC’s push for transparency is not limited to the capital. Officials plan to take their message on the road, with regional “visiting disclosure briefings” set for later in 2026 in cities like Busan and Gwangju. There are also plans for online explanatory videos to be published on the FTC’s official YouTube channel, “공정거래위원회TV,” ensuring that even the most remote or time-pressed business groups have access to the latest compliance information. “In the second half of the year, we will also conduct ‘visiting disclosure briefings’ for business group affiliates located in regional areas,” an FTC official told 뉴시스.
While the FTC’s new disclosure regime is grabbing headlines, Daekwang Group is making waves of its own. Within just a year of being designated a publicly disclosed business group, Daekwang has excluded 27 companies from its affiliate roster—a move that, according to 블로터, was made possible after the FTC recognized independent management by relatives of Chairman Jo Young-hoon. The excluded affiliates were primarily small real estate project financing and special purpose companies, most of which were either minor players or in the process of being wound down.
Despite this dramatic reduction in the number of affiliates—from 49 last year to just 22 now—Daekwang’s financial standing has only grown stronger. As of 2026, the group reported total disclosed assets of 6.7236 trillion KRW, up by about 516 billion KRW from the previous year, and maintained its 81st place in the national rankings. The group’s capital dipped slightly, from 1.3131 trillion KRW to 1.2918 trillion KRW, while total liabilities increased from 5.2082 trillion KRW to 5.4318 trillion KRW. Analysts suggest this reflects Daekwang’s strategy of shedding non-core, family-owned affiliates to focus on its main businesses, such as Daekwang Rojebian, and to streamline its governance structure.
“Daekwang Group simplified its business portfolio and clarified governance by excluding affiliated companies owned by relatives, preventing potential succession disputes,” 블로터 observed. The FTC confirmed that none of the excluded companies had significant internal transactions with the group, with the sole exception of Busan Eco 5 PFV. Neither Chairman Jo nor his children hold stakes in these spun-off firms, further underscoring the clean break. The move also aligns with regulatory requirements: when a business group’s controlling person and their relatives hold less than 3% of the shares in a listed company (or less than 10% in an unlisted one), and there have been no overlapping executives or debt guarantees for a year, the FTC can approve such a separation.
The FTC’s annual briefings have become a fixture for compliance officers and legal teams across Korea’s biggest companies, but this year’s event stands out for its scale and the specificity of its guidance. For the first time, the agency will offer one-on-one consultations to address the unique situations of individual business groups. The FTC is also doubling down on education, with plans to produce and distribute explanatory videos covering major disclosure topics—large internal transactions, unlisted company disclosures, and overall group status.
For business groups whose controlling person is now a natural person, the new rules mean more paperwork—and potentially more headaches. Annual disclosures must now cover not just domestic affiliates but also overseas subsidiaries where the controlling person and their relatives hold significant stakes. Internal transactions with companies owned by the controlling person or their family must also be reported, even if those companies are small or have completed their business operations. And if these obligations are not met, companies could face corrective orders or fines.
But for regulators and stakeholders alike, these changes are seen as necessary steps to ensure greater transparency and accountability in South Korea’s powerful conglomerates, known as chaebol. The FTC’s efforts to clarify the rules and offer direct, practical guidance—both in person and online—reflect an understanding that compliance is not just about ticking boxes, but about fostering a culture of openness and fair play.
As the dust settles from these latest moves, both the FTC and Korea’s business giants appear determined to adapt. Whether it’s Daekwang Group’s bold restructuring or Coupang’s expanded disclosure duties, the message is clear: in an era of heightened scrutiny and evolving regulation, the only constant is change.