A significant shift in investment has been observed towards sectors like secondary batteries. (Image courtesy of Yonhap)
SEJONG, Feb. 7 (Korea Bizwire) – Over the past three months, large corporate groups in South Korea, each with assets exceeding 5 trillion won, have been active in expanding their presence in advanced industries, acquiring or establishing eight companies in sectors such as semiconductors and secondary batteries.
The real estate development and construction sectors also saw significant changes, with companies being both added to and removed from corporate families.
The Korea Fair Trade Commission announced these developments in its report on changes within major corporate groups from November 2023 to January 2024.
As of February 1, there were 81 major corporate groups with a total of 3,043 affiliated companies, marking a decrease of 41 companies compared to the count three months prior.
The report highlighted that 49 companies were newly affiliated with 27 groups through establishment or acquisition, while 90 companies were removed from 41 groups due to mergers, sales of shares, or liquidation.
Among the groups, SK led with six new companies, followed by Hyundai Motor with four, and Hanwha with three.
The review period saw notable activity in advanced industries such as semiconductors, secondary batteries, automobiles, and biotechnology, with companies focusing on expanding their business capabilities through acquisitions and new ventures.
For example, SK acquired ISC, a semiconductor test equipment parts company, and Hyundai Motor established Mobiont, a producer of core components for automobile modules.
In the realm of real estate development, management, and construction, there was a lively exchange of companies being added to and removed from corporate groups. Shinsegae and seven other groups added 10 companies, while Lotte and 11 other groups saw 17 companies being removed from their corporate families.
Furthermore, amendments to the Enforcement Decree of the Fair Trade Act have made it possible for corporate groups to permanently remove university-industry cooperation technology holding companies and their subsidiaries from their affiliations.
As a result, six groups, including Samsung’s Sungkyunkwan University Technology Holding and Posco’s Pohang University of Science and Technology Holding, have removed 10 companies from their corporate structures.
Kevin Lee (kevinlee@koreabizwire.com)
