Number of Affiliates in Large Corporate Groups Decreases by 4 in Three Months

According to the 'Status of Changes in Companies belonging to Large Corporate Groups' announced by the Fair Trade Commission (FTC) on the 14th, the total number of affiliates of major groups such as Samsung and Hyundai Motor decreased by 4 over the past three months (May 1 to August 3). Large corporate groups designated by the FTC refer to large corporate groups that have core companies. During this period, 35 groups newly incorporated 75 companies through new establishments, but 79 companies left the fold due to mergers, etc., a larger number. The changes in figures show that large business groups are promoting restructuring to secure new growth engines while organizing non-core businesses. The Fair Trade Commission analyzed that which businesses to incorporate and shed has become a key factor determining the competitiveness of large business groups.

Along with investment in cutting-edge industries, restructuring of non-core businesses with declining profitability was also carried out. DB saw the largest number of affiliate departures at 13, followed by SK with 7. SK removed five companies, including real estate developer SK D&D Co., Ltd., from its affiliates, while CJ removed two companies, including animal feed manufacturer CJ Feed&Care Co., Ltd.

Regarding new incorporations, Hyosung added 11 companies, GS added 9, and Daemyung Chemical added 7. Samsung incorporated Korea AI Computing Center Co., Ltd. for its AI data center business and Flact Group Korea Co., Ltd., a cooling and air conditioning solution company, as affiliates. GS incorporated four companies, including GS AI Infra Co., Ltd., as affiliates. Hansol incorporated Weltek Co., Ltd., a semiconductor inspection component manufacturer, while Hyosung incorporated HS Hyosung Energy Solution Korea Co., Ltd., a silicon anode material manufacturer.

Movements to clean up governance structures were also confirmed. Line, which was newly designated as a large corporate group this year, removed four companies, including Sindor, a family-owned company, from its affiliates. Woongjin also excluded four companies, including Geonjin Construction, which are family and executive management companies, to improve dominance and transparency. An official from the Fair Trade Commission analyzed that companies are concurrently pursuing M&A focused on cutting-edge industries and the sale of non-core businesses.