Conglomerate-affiliated firms decline amid portfolio restructuring: FTC
The antitrust regulator said Friday that the number of conglomerate-affiliated companies fell slightly from three months earlier, amid industrywide portfolio restructuring efforts. The country's 102 conglomerates held 3,534 affiliates as of Aug. 3, down by four from 3,538 tallied three months earlier, according to the Fair Trade Commission (FTC). Over the period, 79 companies were removed from…
The Fair Trade Commission (FTC) reported on Friday that the count of conglomerate-affiliated firms dropped marginally compared to three months ago, in line with industry-wide efforts to restructure portfolios. As of August 3, the 102 conglomerates in the country were associated with 3,534 affiliates, a decrease from the 3,538 previously recorded.
The reduction was attributed to 79 companies being removed from the list due to mergers, separations, and other adjustments, while 75 new entities were added. Notable changes included SK Group eliminating seven of its affiliated companies, DB removing eleven, and Hyosung cutting six. Conversely, Hyosung also expanded its network by adding eleven new firms, while GS Group welcomed nine fresh affiliates.
The FTC noted that large-scale business groups have been undergoing portfolio restructuring to pursue new business prospects amidst a shift in the broader industrial environment. Under Korean regulations, conglomerates with assets exceeding 5 trillion won ($3.82 billion) are required to disclose their business status and details of significant internal transactions.
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