The country's antitrust regulator has reportedly asked Hanwha Group to produce measures to address concerns of possible monopoly in relation to its plan to acquire Daewoo Shipbuilding and Marine Engineering.

An official at the Fair Trade Commission(FTC) said on Monday that the merger may result in restricting competition in the market, adding certain measures are needed to address these concerns.

The official reportedly said that affiliates of Hanwha Group have significantly large shares in the market of weapons systems mounted on warships, indicating that they have market dominance.

The official added that under the circumstances, Hanwha's takeover of a shipbuilder that makes warships raises concerns that it will disadvantage competing shipbuilders.

The official stressed that multiple local shipbuilders also raised such concerns regarding the merger. 

Meanwhile, Hanwha said that it has not received any specific proposals from the FTC on corrective measures to resolve the concerns.

Excluding the FTC, seven competition authorities, including the European Union and China, have approved the merger.