Number of Subsidiaries Under Large Corporations Increases by 44... Impact of 'Green New Deal' on Expansion of Renewable Energy Businesses

Fair Trade Commission, Recent 3-Month Changes in Subsidiaries of Large Business Groups

[Sejong=Asia Economy Reporter Joo Sang-don] It has been revealed that the number of subsidiaries belonging to large business groups increased by 44 over the past three months. This is due to large business groups expanding their renewable energy-related businesses in accordance with the Green New Deal policy.

On the 1st, the Fair Trade Commission disclosed changes in the subsidiaries of large business groups that occurred over the past three months (November 1, 2020 to January 31, 2021).

According to this, as of the 31st of last month, the total number of subsidiaries belonging to large business groups was 2,369, an increase of 44.

During the period from November 1, 2020 to January 31, 2021, 34 groups incorporated a total of 97 companies as subsidiaries, while 24 groups excluded a total of 53 companies from their subsidiaries.

The groups with the most newly incorporated companies were SK (22), Samchully (10), and GS (7), while the groups with the most excluded companies were Hanwha (8) and IMM Investment (5).

Regarding the cause of the increase in subsidiaries of large business groups, the Fair Trade Commission analyzed that it was because large business groups expanded their businesses in the renewable energy sector following the Green New Deal policy after the outbreak of COVID-19. In fact, OCI absorbed and merged Gunjang Energy centered on SGC Energy (formerly Samkwang Glass), and spun off SGC Solutions to launch SGC Group, a comprehensive energy company based on renewable energy. SK acquired shares in 16 companies including environmental platform company Environmental Facility Management and Solis, which operates renewable energy businesses, and newly established Ariul Happy Solar, a solar power generation company.

Some large business groups also restructured their business structures by splitting existing companies to strengthen business competitiveness. Daelim, centered on holding company DL, split its construction division into DL E&C and its petrochemical division into DL Chemical. CJ spun off the existing Tving business unit, which operates the online video service (OTT) business of CJ ENM, to establish Tving. Naver spun off Snow to establish Cake, which operates an English education mobile application business, and Cream, which operates a sneakers trading platform business.