The government said on the 11th it will ease the separation of industrial and financial capital rules for holding companies of semiconductor corporations. As a result, a grandson company of a holding company such as SK hynix will be allowed to establish a company that engages in financial lease operations. In addition, when setting up the company, SK hynix will be able to hold only 50% equity, making it possible to attract outside investment. Currently, it must hold 100% equity, but the regulation will be eased.
The Ministry of Economy and Finance stated accordingly during a briefing to President Lee Jae-myung that day. The government said it will relax the mandatory equity ratio for great-grandchild companies of holding companies of semiconductor corporations from 100% to 50%. It also decided to allow great-grandchild companies of holding companies of semiconductor corporations to engage in financial lease operations.
For example, SK hynix, a grandson company of SK Holdings, will be able to have a great-grandchild company that conducts financial lease operations. The market expects the new great-grandchild company to build a plant for SK hynix and lease that plant to SK hynix.
Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of the Ministry of Economy and Finance, said, "(The principle of separating industrial and financial capital) will not be touched at all," and added, "This is to ease regulations from a financial perspective to help raise funds in areas that require large-scale investment."
However, the government plans to ease the mandatory equity ratio only for holding companies that undergo review and receive approval from the Fair Trade Commission. The Korea Fair Trade Commission (FTC) will also examine the feasibility of the business plan, including local investment plans, and the level of equity capital. (Related article☞[Exclusive] Government eases separation of industrial and financial capital… allowing great-grandchild financial businesses if "business feasibility" and "funding shortage" are proven)