16 business items selected to restrict entry of large companies

16 business items selected to restrict entry of large companies A presidential panel on shared growth released Tuesday a list of 16 business items, to which entry of large companies will be restricted. The Commission on Shared Growth for Large and Small Companies has continued discussions on 45 items since May along with local conglomerates. According to the panel, the first batch included traditional fermented sauces such as gochujang, doenjang and ganjang; food items including makgeolli or rice liquor and sundae or Korean sausage; manufacturing parts of vehicles; and other smaller businesses. The selected items were also categorized into three parts depending on the allowable scope of business activities by large companies. For solid laundry soap, the panel recommended large firms to withdraw their businesses in phases. In case of traditional pastes, which faced resistance from companies, it was suggested that large firms not enter the government procurement market such as military supply and to refrain from merger and acquisition of smaller makers. For makgeolli, which is soaring in popularity, the panel urged large firms to focus on overseas markets while the domestic market is led by smaller companies. Decisions on some controversial items such as tofu, vehicle navigation systems and desk-top computers were delayed until next month when the announcement of the remaining 29 will be made. “We have been in discussions with large companies during the selection process. We will continue to maintain a consultative body to reach an agreement,” said a commission official. “We will also announce the results of our surveillance on their fulfillment on a regular basis.” The day’s announcement faced less resistance from larger firms as they have already prepared for it during the discussions over the past months. LG Household & Health Care, a major personal care goods maker, earlier decided to stop producing solid laundry soap, while CJ CheilJedang and Daesang Corporation, both major traditional paste makers, have also agreed not to join the process of government procurement.(The Korea Herald, Sep. 28th, 2011)