Conglomerate-affiliated firms decline amid portfolio restructuring: FTC

The Fair Trade Commission (FTC) reported on August 14 that the number of conglomerate-affiliated firms in South Korea dropped slightly, coinciding with industry-wide portfolio restructuring initiatives. As of August 3, the 102 conglomerates in the country were linked to 3,534 affiliates, a reduction of four compared to the 3,538 affiliates recorded three months prior, according to the FTC.

During this period, 79 companies were removed from the conglomerate-affiliated list due to mergers, separations, and other organizational changes. Conversely, 75 new companies were added to the list. Among the major conglomerates, SK Group reduced the number of affiliated firms by seven, DB removed 11 companies, and Hyosung decreased its affiliate count by six. Hyosung, on the other hand, increased its affiliate portfolio by 11 firms, while GS Group expanded its affiliate base by nine.

The FTC explained that the decline in conglomerate-affiliated firms is part of a broader portfolio restructuring strategy undertaken by large business groups. In line with South Korean regulations, conglomerates with assets exceeding 5 trillion won (approximately US$3.82 billion) are required to disclose their business status and details of large-scale internal trade activities.