Conglomerate-affiliated firms decline amid portfolio restructuring: FTC

The antitrust regulator, the Fair Trade Commission (FTC), reported on Friday that the number of conglomerate-affiliated companies in the country fell slightly from three months prior. This occurred amid industry-wide efforts to restructure company portfolios. As of August 3, the 102 conglomerates in the country held 3,534 affiliates, down by four from the 3,538 recorded three months earlier, according to the FTC.

During this period, 79 companies were removed from the list of affiliates due to mergers, separations, and other changes, while 75 new affiliates were added. Among the conglomerates affected were SK Group, which reduced seven of its affiliated companies, and DB, which eliminated 11 firms. Hyosung also experienced changes, with six affiliates being dropped and subsequently adding 11 new ones. GS Group, on the other hand, gained nine new affiliates.

The FTC explained that large business groups have been restructuring their portfolios in pursuit of fresh business opportunities as the overall industrial landscape undergoes a transition. In accordance with Korean law, conglomerates with assets of 5 trillion won ($3.82 billion) or higher are required to disclose the status of their businesses and provide details of large-scale internal trade.