Large Corporations Increase 'Semiconductor and Automobile' Affiliates, Decrease Real Estate Affiliates

[Asia Economy Sejong=Reporter Dongwoo Lee] Domestic large conglomerates have recently increased investments in the semiconductor and automobile sectors over the past three months, while reducing subsidiaries related to real estate.

According to the "Status of Changes in Companies Belonging to Large Business Groups from August to October" announced by the Fair Trade Commission on the 8th, as of the end of last month, the number of companies belonging to large business groups was counted at 2,887. Among them, 27 groups incorporated 58 companies as subsidiaries, while 28 groups excluded a total of 57 companies from their subsidiaries. Reasons for exclusion include liquidation completion (30 companies), mergers and acquisitions (9 companies), share sales (6 companies), recognition of independent management (5 companies), and others (7 companies).

The groups with the most newly incorporated companies were SK (11 companies), KG (5 companies), Taeyoung (4 companies), and DaouKiwoom (4 companies). Conversely, the groups with the most excluded companies were IS Holdings (9 companies), Kakao (6 companies), Daebang Construction (4 companies), and Iljin (4 companies).

During this period, large business groups increased share acquisitions related to semiconductors and automobiles. SK acquired shares in Ki Foundry, a semiconductor foundry company, Samkang M&T, a manufacturer of offshore wind power substructures, along with two other companies incorporated simultaneously, and Logisoft, a driver dispatch solution company. Additionally, SK acquired environmental companies such as J.A. Green, a waste treatment company, DY Indus, and DY Polymer, manufacturers of recycled plastics.

KG acquired shares in Ssangyong Motor, an automobile manufacturer, and established three companies related to the acquisition, including Second Mobility Holdings. CJ acquired shares in Egg is Coming and Gil Pictures, broadcasting program production companies, while JoongAng acquired shares in Sublime, an entertainment management company.

The notable number of liquidations in real estate-related sectors is also worth attention.

Among large conglomerate subsidiaries, 21 companies related to real estate were excluded from business groups due to liquidation completion or mergers and acquisitions. These include nine companies such as Inu Construction, a real estate development company under IS Holdings, four companies such as DM Construction, a construction company under Daebang Construction, and real estate development companies under Coupang like Coupang Daegu FC First, as well as construction companies under SM such as STX Construction Asset Management, all of which were liquidated.

D&D Property Management, a real estate development company under SK, was excluded from the business group due to a merger, and Hanam Marbling City Development, a real estate development company under Joongheung Construction, was excluded due to a change in CEO.

On the other hand, eight real estate-related subsidiaries were incorporated into business groups through new establishment or share acquisition.

These include UBC Plus, a construction company under SM, Cheonan Eco Park, a real estate development company under Taeyoung, and Shinyoung Hwayang District Development PFV, a real estate development company under Shinyoung, among others.

Since the amendment of the Fair Trade Act implemented in December last year, there have also been cases where general holding companies established or held corporate venture capitals (CVCs) led by the companies.

Hyosung, a general holding company under Hyosung Group, newly established Hyosung Ventures, a CVC fully funded by Hyosung. CJ sold 100% of the shares of Timewise Investment, a CVC under the same group as C&I Leisure Industry, to CJ, a general holding company, and the CVC was renamed CJ Investment.

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