In the past three months, major South Korean conglomerates have actively integrated subsidiaries focused on artificial intelligence (AI) data centers, semiconductors, and silicon anode materials, aiming to enter high-value future industries. During this period, the total number of affiliated companies decreased by four as non-core businesses were streamlined.
The Fair Trade Commission released data on August 14 detailing changes in the number of companies affiliated with large conglomerates over the last three months. The report covers companies belonging to conglomerates with assets exceeding 5 trillion won from May to July of this year.
The number of companies affiliated with 102 large conglomerates fell from 3,538 on May 1 to 3,534 on August 3, a decrease of four. During this time, 49 conglomerates experienced changes in their affiliated companies. A total of 75 companies were newly integrated into 35 conglomerates through the establishment of 52 new companies and the acquisition of nine others. Conversely, 79 companies were removed from 28 conglomerates due to mergers, sales, and liquidations.
The conglomerates with the most new subsidiaries included Hyosung with 11, GS with nine, and Daemyung Chemical with seven. DB had the highest number of companies removed from its affiliation, totaling 13, followed by Hyosung with eight and SK with seven.
Companies are restructuring their business portfolios by divesting non-core operations. SK excluded five companies, including SK D&D, which is involved in real estate development, from its affiliates. CJ removed two companies, including CJ Feed & Care, a manufacturer of animal feed, while Wonik excluded three companies, including the film production company Plady.
In contrast, there has been significant activity in establishing companies and acquiring stakes in future industries such as AI and semiconductors. Samsung integrated the public-private joint venture Korea AI Computing Center and cooling and air conditioning solutions company Flakt Group Korea into its subsidiaries for its AI data center business.
GS added four AI infrastructure-related companies, including GS AI Infrastructure, while OCI integrated SG Data Power and SG AI Infrastructure. Hansol included semiconductor inspection parts manufacturer Wiltech Technology as a subsidiary, and Hyosung added HS Hyosung Energy Solutions Korea, a silicon anode material manufacturer, to its portfolio.
There were also exclusions of companies controlled by relatives or executives of the same individual. Line, which was newly designated as a large conglomerate this year, excluded four companies, including Shindo, which is controlled by relatives. Woongjin excluded four companies controlled by relatives and executives, while Heesung excluded three companies controlled by executives, and QCP Group excluded one company controlled by an executive through methods such as recognizing independent management, resignations, and liquidations.
Among existing conglomerates, Jungheung Construction excluded KI Consulting, Hyosung excluded six companies including Jeil Industrial, and Banholings excluded three companies including W&Partners through recognition of independent management of relatives.
* This article has been translated by AI.
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