Industrial, financial, tax and competition policies, intentionally or unintentionally, can have various effects on the business strategy and corporate governance of large business group. To avoid or to utilize these effects, large business group cannot help employing political actions. As regulations on large business group have been tightened since the 1970s, the need for corporate political action has increased. Nonetheless, there has been little interest in the business-state relations in the Korean academy of management. We can identify two reasons for this. First, theoretical frameworks that can analyse competition policies from the perspective of large business group rather than the state have not been put in place. Second, the main focus of the existing literature has been not on large business group, but rather on the state. To fill this vacuum, this article analyses the transformation of Fair Trade Act of 1981, making two contributions. First, it is based on a perspective of corporate political strategy to highlight the role of large business group. This perspective can help explain corporate political actions by assuming that large business group influences the contents and methods of regulations. Second, it examines how corporate political actions have evolved over the past decades. The main finding is that large business group used to pursue illegal financial incentive strategy as well as information strategy in the past, but preferred legal information strategy after 2000 with specific type of financial incentive strategy.