FTC Fines KPIC 31 Million Won for 'Violating Holding Company Restrictions'

2026.10.26. The Fair Economy — The Fair Trade Commission has decided to issue a corrective order (prohibition order) and a fine of 31 million won (about $22,500) to KPIC Corporation, a general holding company that owned shares in a financial company. KPIC held 333,333 shares, a 6.67% stake, in SparkLabs Partners for about one year and six months, in violation of holding company restrictions.

The Fair Trade Commission announced on the 25th that it made this decision because KPIC Corporation violated Article 18, Paragraph 2, Item 5 of the Fair Trade Act.

This provision bars general holding companies from owning shares in domestic companies engaged in financial or insurance business, in order to curb the concentration of economic power that results from industrial capital owning financial capital. SparkLabs Partners falls under "other financial investment business (K64209)" in the Korean Standard Industrial Classification.

KPIC owned shares in SparkLabs Partners from July 5, 2023, to December 31, 2024. The company, which converted to a general holding company on December 6, 2013, had total assets of 454.514 billion won (about $329 million) as of the end of 2024. As it had converted before the asset requirement for holding companies was raised from 100 billion won to 500 billion won on July 1, 2017, it was able to maintain its holding company status until June 30, 2027.

However, as of the end of 2024, it failed to meet the holding ratio requirement of 50% or more among the holding company criteria and was excluded from holding company status as of December 31, 2024. The holding ratio is the proportion of a holding company's total assets accounted for by the value of its subsidiaries' shares. Although KPIC is no longer a holding company, the FTC decided to issue a corrective order and impose a fine to prevent the same violation from recurring should it become a holding company again.

The FTC explained that the significance of this action lies in strictly addressing violations committed during the period when the company was a holding company, thereby enhancing accountability and awareness of legal compliance among holding companies.