South Korea's corporate watchdog chief said Tuesday that the revision to the fair trade law was approved by the Cabinet, with the parliament set to deliberate on the bill next month.

In August, the Fair Trade Commission proposed the revision that centers on tougher regulations on conglomerates and unfair business practices.

Under the proposed revision, the number of conglomerate subsidiaries subject to inter-affiliate trading regulations will be increased threefold.  

The revision to the law also bans inter-affiliate trading within a business group whose founding family members hold over 20 percent stakes in both listed and unlisted companies, and over 50 percent in their affiliates.

Under the proposal, the corporate watchdog will surrender its own right to file complaints in major cases, such as over price rigging, in a move to support effective law enforcement and better protect consumers' rights.

For the last 38 years, the FTC has been the only entity that can bring antitrust trade cases to court through the state prosecutors' office. This is aimed at preventing a flood of lawsuits from being filed against firms by individuals and civic groups, which the business community claims could disrupt their normal operations.

The National Assembly is set to review the revision proposal next month during its regular session. (Yonhap)