- Incorporation of many affiliates in high-tech industries such as semiconductors, secondary batteries, and bio -
The Fair Trade Commission (Chairman Han Ki-jung) disclosed the current status of changes in affiliated companies in large corporate groups (company groups subject to disclosure of assets of 5 trillion won or more) that occurred over the past three months (November 2023 to January 2024).
The number of affiliates of large corporate groups decreased by 41 from "23.11.1. 3,084" to "24.2.1. 3,043. (47 large corporate groups that had changes in affiliated companies during the period)
Forty-nine companies were incorporated from 27 groups due to the establishment of companies (22 new, 6 split companies) and the acquisition of shares (16 companies), and 90 companies were excluded from 41 groups due to the merger (30 companies), the sale of shares (14 companies), and the settlement of liquidation (19 companies).
The groups with many newly incorporated companies are in the order of ｢SK｣ (6), ｢Hyundai Motor자동차 (4), ｢Hanhwa｣LS‧ and ｢DL｣ (3 each), and the groups with many excluded companies are in the order of ｢Nongshim10 (10), ｢SK｣ and ｢Kakao｣ (8 each), and ｢Boseong｣ (5).
Compared to the last change, the number of companies incorporated into the company establishment decreased (△14), and the number of companies excluded from the merger increased (21), resulting in an overall decrease (△41).
The change in affiliated companies showed three characteristics as follows.
First, in the high-tech industries such as semiconductors, automobiles, secondary batteries, and bio, a number of equity acquisitions and company establishments were made to expand business capabilities, and eight companies from four groups were incorporated.
｢SK｣ acquired ISC Co., Ltd., a semiconductor test equipment parts company, and was incorporated into its subsidiaries, ISCM Co., Ltd., ITTC Co., and ProWell Co., Ltd.
｢Hyundai Motor Company｣ established Mobiant Co., Ltd., a producer of automobile modules and core parts, and ｢LS｣ established LSL&F Battery Solution Co., Ltd., a precursor company for secondary battery anode materials, and ｢Lotte｣ acquired Terrazen Health, a genetic testing company.
Second, the incorporation and exclusion of affiliates were active in the real estate development, management, and construction fields.
Ten companies in eight groups, including Shinsegae Property Investment Co., Ltd., which establishes and operates real estate investment companies in Shinsegae, NS Partners Co., Ltd., which develops officetels and non-residential buildings in DL, and STX Construction Industry Co., Ltd., which develops real estate in SM, were incorporated, 17 companies in 12 groups, including Lotte Tech D&D Co., Ltd. of Lotte, Seosan Techno Valley of Hanwha Co., Ltd., K Global General Private Real Estate Investment Co., Ltd. No. 2 of GS Co., Ltd., and Plus2 percent of Kakao Co., Ltd., were excluded.
Finally, the revision of the Enforcement Decree of the Fair Trade Act (enforced on December 21, 2023) made it possible to permanently exclude industrial-academic cooperation technology holding companies and subsidiaries belonging to business groups, excluding 10 companies from six groups, including Sungkyunkwan University Technology Holding Co., Ltd. of Samsung, Pohang University of Science and Technology Holding Co., Ltd. of POSCO, and Ulsan University Technology Holding Co., Ltd. of HD Hyundai.