- The highest number of exclusions from affiliations in the past five years, with active restructuring through mergers and equity sales -
The Korea Fair Trade Commission (Chairman Han Ki-jeong, hereinafter referred to as the "KFTC") has disclosed the changes in the affiliated companies of large business groups (publicly designated business groups with assets of KRW 5 trillion or more) that occurred over the past three months (from November 2024 to January 2025).
As of November 1, 2024, the total number of affiliated companies under 88 large business groups was 3,284, which decreased by 79 to 3,205 as of February 3, 2025. During this period, 63 business groups experienced changes in their affiliated companies.
A total of 69 companies were newly affiliated with 38 business groups through company establishments (38 new companies, 3 spin-offs) and equity acquisitions (18 companies). Meanwhile, 148 companies were excluded from 44 business groups due to mergers (28 companies), equity sales (14 companies), and liquidation closures (51 companies).
The business groups with the most newly affiliated companies were Hanjin (8 companies), Hanwha (4 companies), and KT, MDM, and JoongAng (3 companies each). On the other hand, the business groups with the highest number of exclusions were Taeyoung (30 companies), Daishin Securities (16 companies), and SK (13 companies).
Three key characteristics were observed in these changes:
1. The highest level of downsizing through exclusions in the past five years
The most active downsizing of business groups through company exclusions was recorded in the past five years.
Taeyoung, which had the highest number of excluded companies, removed a total of 30 companies from its affiliates to improve its financial structure and management efficiency. This included selling its stake in EcoBit Co., Ltd., a waste management company, and merging BlueOne Leisure Co., Ltd. into its parent company, BlueOne Co., Ltd.
SK undertook business restructuring by merging SK Innovation Co., Ltd. with SK E&S Co., Ltd. in the energy sector and selling shares of ISCM Co., Ltd. in the semiconductor sector, leading to the exclusion of 13 companies.
Additionally, to strengthen business competitiveness and enhance management efficiency, Hanwha Industrial Solutions Co., Ltd. merged with Hanwha Vision Co., Ltd., Kakao Corp. absorbed Daum Global Holdings Co., Ltd., and DL sold its stake in Highway Solar Co., Ltd. A total of 148 companies were excluded from affiliations, marking the highest number in the past five years.
2. Expansion of logistics and transportation business through equity acquisitions and company establishments
In the logistics and transportation sectors, significant acquisitions and new company formations were made to strengthen business capabilities.
Hanjin incorporated three airline companies, including Asiana Airlines Co., Ltd., following the final approval of a corporate merger last year. Sono International added JC Aviation No.1 LLC, which holds shares in the low-cost carrier Air Premia Co., Ltd., to its affiliates.
Kumho Asiana established Kumho Mokpo City Bus Co., Ltd. for city bus operations, JoongAng founded DeliBox JoongAng Co., Ltd. for logistics and delivery services, and Eugene Group acquired shares in Alliance Co., Ltd., which specializes in appliance and furniture installation and delivery.
3. Business diversification through new company formations and equity acquisitions in energy, healthcare, and materials industries
To diversify its business, LS Group acquired shares in Yeosu Green Energy Co., Ltd., which is involved in LNG power generation, and established Incheon Clean Energy Hub Co., Ltd. for the hydrogen supply business.
Additionally, Kyobo Life Insurance established Kyobo Dasom Care Co., Ltd. in the healthcare sector, while BGF acquired shares in DaeWon Chemical Co., Ltd., which specializes in high-performance plastic materials.