2125 Companies Affiliated with Large Corporations... Decreased by 10 in the Last 3 Months

[Sejong=Asia Economy Reporter Joo Sang-don] The number of subsidiaries belonging to large business groups (59 groups) decreased by 10, from 2,135 as of November 1 last year to 2,125 as of January 31 this year.

The Fair Trade Commission recently disclosed on the 3rd the changes in subsidiaries of large business groups that occurred over the past three months.

During this period, 32 groups incorporated a total of 66 companies as subsidiaries. The reasons for incorporation were company establishment (28 new, 10 spin-offs), equity acquisition (21), and others (7). Meanwhile, 27 groups excluded a total of 76 companies from their subsidiaries during the same period.

The groups with the most newly incorporated companies during this period were 'Kakao (9)' and 'SK (7)'. The groups with the most excluded companies were 'Lotte (11)' and 'SM (11)'.

Key features include major mergers and acquisitions in sectors such as internet-only banks and broadcasting and telecommunications. Kakao acquired shares of Korea Kakao Bank from Korea Investment Finance, becoming the largest shareholder and incorporating Korea Kakao Bank as a Kakao subsidiary. Additionally, LG acquired CJ Hello and CJ Hello Hana Broadcasting from CJ, incorporating them as LG subsidiaries.

There were also cases of divestment of financial and insurance companies to comply with holding company regulations prohibiting general holding companies from owning shares in financial and insurance companies and prohibiting subsidiaries of general holding companies from controlling financial and insurance companies. Lotte sold eight financial and insurance companies, including Lotte Card and Lotte Insurance, excluding them from its affiliates. LG's LG Sangsa lost control as the managing partner of Global Dynasty Overseas Resource Development Private Equity Fund (PEF), excluding the PEF from its affiliates.

Along with this, business structure reorganization through company spin-offs and mergers and acquisitions was carried out. Nine business groups, including POSCO, established a total of 10 companies through spin-offs and incorporated them as subsidiaries. Fourteen groups, including SM, merged a total of 39 companies into subsidiaries, dissolving them.

This content was produced with the assistance of AI translation services.