Lotte Chemical's research center / Courtesy of Lotte Chemical

Korea's antitrust regulator said Tuesday it has approved Lotte Chemical's merger with a local copper foil producer as the move is not likely to hinder fair competition.

The review by the Fair Trade Commission (FTC) came after Lotte Chemical signed an agreement to purchase a 53.5-percent stake in Iljin Materials in October in a deal estimated at 2.7 trillion won ($2.17 billion).

Copper foil is as thin as one-fifteenth the width of human hair and is used as the anode current collector of lithium-ion battery cells for electric vehicles.

The merger between Lotte Battery Materials USA, a wholly owned subsidiary of Lotte Chemical, and Iljin Materials came in line with Lotte Chemical's plan to expand its presence in the rechargeable battery market.

Iljin takes up around 5 percent of the global market for copper foils, according to the FTC. Considering those used for batteries, its market share was estimated at 10 percent.

The FTC added the merger is not likely to completely overwhelm other rivals including SK and LG, whose business portfolios also include battery materials.

Lotte Chemical, meanwhile, announced in November it plans to raise 1.1 trillion won via a rights offering as part of efforts to secure funds for its acquisition of Iljin Materials. (Yonhap)