- Average internal shareholding ratio of 81 groups with owners: 62.4%; ownership by owner families: 3.7%
- Increase in voluntary elimination of circular shareholding structures among corporations
The Korea Fair Trade Commission (KFTC) analyzed and disclosed the shareholding status of 3,090 affiliated companies belonging to 81 business groups with controlling owners, out of the 92 business groups designated as public disclosure targets as of May 1, 2025.
1. Key Findings
Internal Shareholding Ratio
The internal shareholding ratio—the percentage of total issued shares in affiliated companies held by controlling owners, relatives, affiliates, nonprofit organizations, executives, and treasury stock—was 62.4% in 2025, a slight increase from 61.1% in 2024 (78 groups).
Over the past five years, owner-family shareholding has remained relatively stable (3.5%–3.7%), whereas the shareholding of affiliated companies has steadily risen (51.7% in 2021 → 55.9% in 2025). This increase reflects factors such as major mergers and acquisitions (M&A) and the designation of new holding-company groups (e.g., Hanjin, Hankook & Company, Global Sae-A, LIG, Bithumb).
Groups with the highest owner shareholding ratios were Krafton (29.8%), Booyoung (23.1%), Bando Holdings (19.3%), AmorePacific (17.1%), and DB (16.5%).
Those with the highest second-generation ownership included Nexon (64.5%), Bando Holdings (22.5%), Hankook & Company Group (21.7%), Sono International (10.8%), and Aekyung (10.6%).
Out of 79 groups, 414 affiliates held treasury shares, while companies under HYBE and Bithumb held none.
Among listed companies, 71 had treasury share ratios exceeding 5%. The top firms were Mirae Asset Life Insurance (34.2%), Lotte Holdings (32.3%), TY Holdings (29.2%), LS Inveny (28.7%), SK Inc. (24.6%), and Taekwang Industrial (24.4%).
Overseas Affiliates’ Investment Status
Among the analyzed groups, 34 groups operated 116 overseas affiliates investing directly or indirectly in 90 domestic affiliates.
Groups with the most investing overseas affiliates were Lotte (21), Hanwha (13), SK (11), Kakao (9), and Naver (7).
In 20 groups, owner families held 20% or more equity in 55 overseas affiliates, and in 5 of these groups, 10 overseas affiliates also invested directly or indirectly in domestic companies.
These were Lotte (Family Co., Lotte Green Service Co., Kwangyoon Co., China Rise Enterprise Ltd.), Sinokor (Sinokor Company Ltd.), Kolon (Attometal Tech Pte. Ltd.), OK Financial Group (Grita Co., J&K Capital Co., Yamajun Trading Co.), and Bithumb (SG Brain Technology Consulting Pte. Ltd.).
Regulated Private Interest Transactions
Under Article 47 of the Monopoly Regulation and Fair Trade Act, companies are restricted from providing undue benefits to controlling shareholders and their related parties to prevent market distortion and unjust wealth transfers.
In 2025, 958 companies (31% of all affiliates) in 81 groups were subject to this regulation:
- 391 companies were directly owned (20%+) by owner families.
- 567 were subsidiaries (50%+ owned) of those companies.
Circular and Cross-Shareholding
Corporate groups continued efforts to voluntarily dismantle circular and cross-shareholding structures.
For instance, KG Group reduced its circular shareholding loops from 10 to 2 and eliminated all cross-shareholdings before its 2020 designation.
Taekwang Group, which had two circular shareholding chains formed after 2018 mergers, has also completely resolved them.
Meanwhile, Hyundai Motor and BS Group maintained the same number of circular links as last year.
The newly designated Sajo Group initially had a large number of circular shareholdings (1,218 as of August 31, 2025) but has started to unwind them, announcing plans for further improvement.
Stock Compensation Agreements
This year, 13 business groups concluded 353 stock compensation contracts for performance rewards involving controlling owners, family members, and executives.
The types were:
- Restricted Stock Units (RSU): 188 cases
- Stock Grants: 51 cases
- Performance Stock Units (PSU): 107 cases
- Others: 7 cases
RSUs are transferred once vesting conditions are met; Stock Grants are immediate one-time stock rewards; PSUs are virtual shares tied to corporate performance metrics.
Notably, six groups entered into 16 stock contracts involving owners or their family members (12 individuals)—including Hanwha and Eugene Group, which both signed RSU agreements with second-generation successors in 2024.
2. Implications and Future Plans
The 2025 analysis shows continued stability in owner-family equity levels, rising affiliate ownership, and a gradual increase in internal shareholding ratios.
Importantly, the KFTC’s consistent public disclosure of corporate ownership data appears to have spurred voluntary market discipline, as evidenced by the decline in circular and cross-shareholding structures.
The KFTC plans to follow up with further disclosures, including the voting behavior of public-interest foundations, loan guarantee practices, governance structures, and intragroup transactions, to enhance transparency and encourage voluntary governance reform within major business conglomerates.