Active Exclusion of Affiliated Incorporation in Real Estate Development and Management Construction Sector
Large business groups with assets exceeding 5 trillion won have acquired or newly established 15 companies in the renewable energy sectors such as solar power and secondary batteries over the past three months.
The Fair Trade Commission disclosed the status of changes in subsidiaries belonging to large business groups (May to August 2024). As of the 1st of this month, there are 88 large business groups and 3,292 affiliated companies, a decrease of 26 compared to the 3,318 companies recorded in May three months ago.
Through company establishment and equity acquisition, 60 companies were incorporated into subsidiaries across 32 groups, while 86 companies were excluded from subsidiaries in 31 groups due to mergers, equity sales, or liquidation.
The groups with the most newly incorporated companies are Hanwha (8 companies), followed by Shinsegae, SM, and Global Se-ah (4 companies each). The groups with the most excluded companies are Youngone (26 companies), CJ (7 companies), and Daishin Securities (5 companies).
In the renewable energy sectors such as solar power, secondary batteries, and bioenergy, equity acquisitions to expand business capabilities led to 15 companies being incorporated into subsidiaries across 6 groups. Hanwha incorporated the most companies in the renewable energy field during this period by establishing five companies related to solar power generation including Gyeongnam Insight Rooftop Solar No.1, as well as Hanwha Momentum related to secondary battery equipment, and Buyeo Bio and Yeosu Eco Energy related to eco and bioenergy.
Lotte established Lotte Infrasell related to secondary battery materials, LG established LG Uplus Volt Up related to electric vehicle charging infrastructure supply, and LS established Energy Link Naju related to electric vehicle charging services and renewable energy.
There was also active incorporation and exclusion of subsidiaries in the real estate development, management, and construction sectors. Six companies from six groups were incorporated, including Hyundai Motor’s HMG Service related to business facility management, SM’s HNI Inc. related to residential building construction, and Janggeum Shipping’s Busan New Port Ungdong Development related to real estate development and supply. Meanwhile, seven companies from seven groups were excluded, including Lotte’s Eunpyeong PFV, Kakao’s Kakao Space, HDC’s HDC Next Consignment Management Real Estate Investment Company, and Hoban Construction’s Smart City The One PFV.
Twenty-four companies including Hwashin belonging to Youngone, four companies including Pungwon Development belonging to Daishin Securities, three companies including Earth Eight belonging to HYBE, and three companies including The Wing Holdings belonging to Paradise were excluded from subsidiaries after reviewing applications for independent management by relatives.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
