According to Yonhap, South Korea's Fair Trade Commission (FTC) approved Korea Railroad Corp.'s takeover of SR Corp. on Sunday, saying the deal is unlikely to restrict competition in the transportation industry. The watchdog said KORAIL, as a state-run company subject to government oversight, is unlikely to abuse its market position or harm consumers. It also said the high-speed rail sector is heavily regulated under the Railroad Service Act and other related laws, while ticket fares cannot exceed ceilings set by the transport and finance ministries. KORAIL cannot unilaterally raise fares, cut the number of seats, reduce service frequency or alter routes without approval from the land minister. The FTC and the land ministry signed a memorandum of understanding the same day to keep monitoring KORAIL's operations after the takeover, which is expected to be completed in September.