Korean Conglomerates Operate 140 Subsidiaries in the Middle East... Samsung Leads with 28

Concentration in UAE (56) and Saudi Arabia (38)

"Prolonged Instability May Trigger Financial Risks"

Amid rapidly changing geopolitical conditions in the Middle East, including military clashes between the United States and Iran, it has been found that major South Korean conglomerates currently operate a total of 140 overseas subsidiaries in Middle Eastern countries. In particular, Samsung Group has established 28 overseas subsidiaries across the Middle East, making it the domestic group with the largest number of local bases in the region.

Foreigners at Incheon Airport watched related news on June 1 as tensions in the Middle East escalated sharply due to attacks by the United States and Israel, leading to cancellations of routes including flights to Dubai. Photo by Yonhap News Agency

On March 4, the Korea CXO Institute released an analysis titled "Status of Overseas Subsidiaries in Middle Eastern Countries by 92 Major Korean Conglomerates." According to the findings, 92 domestic groups are operating a total of 140 overseas subsidiaries across 10 Middle Eastern countries. While this accounts for only 2.2% of the total 6,362 overseas subsidiaries of the 92 groups as of last year, it is analyzed that, given the domestic economy's high dependence on energy, the impact of changes in local conditions is considerable.

By country, the United Arab Emirates has the largest concentration, with 56 subsidiaries. This is followed by Saudi Arabia (38 subsidiaries), Oman (12 subsidiaries), and Egypt (11 subsidiaries). Israel has 8 subsidiaries, while Iran and Oman—which have been targeted by U.S. attacks—each have 4 subsidiaries. Cyprus has 3, and both Bahrain and Kuwait have 2 subsidiaries each.

By conglomerate, Samsung has established a total of 28 subsidiaries, showing the most active expansion into the Middle East. Samsung operates 10 subsidiaries in the United Arab Emirates, 6 in Saudi Arabia, and 5 in Israel. Major affiliates such as Samsung Electronics, Samsung C&T, and Samsung Bioepis have entered the local markets.

Hyundai Motor, LG, and GS Group each operate 14 subsidiaries. Notably, Hyundai Motor increased its number of Middle Eastern subsidiaries by 6 compared to 2023, indicating heightened interest in the region. LG has secured production and sales bases for home appliances, focusing on the United Arab Emirates (7 subsidiaries) and Saudi Arabia (3 subsidiaries). GS mainly operates construction-related subsidiaries, with 8 in Oman, 4 in the United Arab Emirates, and 2 in Saudi Arabia.

In addition, CJ Group (8 subsidiaries), Hanwha Group (7 subsidiaries), SK and KCC Group (5 each), Jungheung Construction Group (4), DL, HD Hyundai, OCI, Korea H, LX, OK Financial, Hankook & Company, and Hoban Construction Group (3 each), as well as Doosan, LS, SeAH, and Nexon Group (2 each), and HMM, KT&G, Global SeAH, Naver, Netmarble, Lotte, Amorepacific, Kakao, and POSCO (1 each), have overseas affiliates in Middle Eastern countries.

Oil-Sun Oh, Director of the Korea CXO Institute, commented, "Should the crisis in the Middle East become prolonged, disruptions in oil supply could become a reality, inevitably leading to rising energy prices and increased logistics costs. This would reduce the profitability of export and import companies across the board and could trigger a chain of financial risks, such as tightening corporate liquidity." He added, "It is necessary to implement proactive liquidity management and risk response systems tailored to the expanding market uncertainty."

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