The head of South Korea's antitrust watchdog has called on the controlling families of conglomerates to exert long-term efforts to limit the possession of shares in unlisted companies. 

Fair Trade Commission(FTC) Chairman Kim Sang-jo said Thursday that it would be desirable for controlling families to only hold shares in key affiliates. 

Kim made the remarks in a news conference, following a meeting with the heads of the nation’s top ten business groups at the Korea Chamber of Commerce and Industry. 

He explained that their possession of shares at unlisted, non-flagship affiliates lead to the practice of intra-group dealings.  

The chairman denounced inter-affiliate dealings as a malpractice that gives unfair profits to controlling families at the sacrifice of small and mid-sized companies, while paving the way for illicit managerial succession and the concentration of economic power.  

Regarding criticism over the FTC’s policy on revamping conglomerates, Kim said that his agency will listen to all criticism and pursue the policy in a balanced manner. He added that the commission will consistently implement the policy over a time frame of three to five years.