The total number of conglomerates eligible to make loan guarantees fell from last year's 61 following the implementation of a new antitrust law in September that puts companies with assets of 10 trillion won or over on the FTC watch list.

Those under FTC surveillance are restricted from making equity investments or offering loan guarantees to one another.

The FTC said five companies were engaged in in-house loan guarantee practices -- Hyundai Department Store, Hanjin, GS, Doosan and Hyosung.

Such cross-loan guarantees have been banned in Asia's fourth-largest economy since 1998, as they were regarded as one of the main reasons that brought about the 1997 Asian financial crisis. (Yonhap)