South Korea's antitrust regulator on Thursday approved the launch of a hydrogen power company jointly established by SK Energy Co. and three other local partners, concluding the new firm is unlikely to impede competition within the market.

The decision came after SK Energy earlier announced its plan to establish SL Energy Solution, in which it will hold a 29.9 percent stake, with LS Electric Co. also holding an equivalent stake.

The newly established entity will primarily focus on generating hydrogen power in urban areas at gas stations and other designated locations.

It plans to participate in the government's hydrogen energy bidding market, scheduled to kick off in 2024.

"As numerous private bidders are expected to participate in the market, and considering the government determines the volume and buyers, we have concluded that the new company will not significantly hinder competition," the Fair Trade Commission said.

The commission said the latest approval is expected to induce more companies to participate in the hydrogen market. It also vowed to promptly review mergers of energy-related firms to support the growth of the market's ecosystem. (Yonhap)