Over the past three months, major domestic conglomerates have reduced their affiliated companies by eight through splitting or merging subsidiaries.
The Fair Trade Commission announced on the 8th that among 88 large business groups from August to October this year, 46 experienced changes in their affiliated companies, with the total number of affiliated companies decreasing from 3,292 to 3,284, a reduction of eight.
Due to company establishment (36) and equity acquisition (18), 60 companies were newly affiliated within 31 groups, while 68 companies were excluded from affiliation in 29 groups due to mergers and acquisitions (24), equity sales (7), and liquidation closures (22).
The groups with the most newly affiliated companies were Hanwha (10), SM (5), and SK and Shinsegae (4 each), while the groups with the most excluded companies were Daishin Securities (11), SK and Wonik (6 each), and Youngone (5).
The Fair Trade Commission stated, "The main characteristic of these changes in affiliated companies is that many business structure reorganizations within corporate groups were carried out through splitting and merging companies to strengthen business capabilities and improve management efficiency."
SK established SK Speedmate by splitting the vehicle maintenance and management division from SK Networks to enhance business specialization and management efficiency, and SK Livio merged with SK TBM Giostone, a related biodegradable material business, to create synergies and improve efficiency in eco-friendly businesses.
Hanwha established Hanwha Industrial Solutions by splitting related divisions from Hanwha Aerospace to strengthen its video security, artificial intelligence (AI), and semiconductor equipment businesses, and Hanwha Energy merged with Hanwha Convergence to enhance competitiveness in energy-related businesses.
Additionally, DK Tech, affiliated with Kakao, merged with Kakao Brain; Line Games, affiliated with Naver, merged with Space Dive Games, Zero Games, and Leg; and Hyundai Department Store, part of Hyundai Department Store Group, merged with Hyundai Shopping.
There were also cases of company establishment and equity acquisition aimed at business diversification through new business initiatives. POSCO established POSCO Zhongtai Air Solutions related to high-purity rare gas production, and SM acquired shares in Hans Intech and Hans Chemical, manufacturers of synthetic resin films, incorporating them into their affiliates.
Furthermore, Netmarble acquired Coway Life Solutions related to the silver care business, Samchully established Samchully EV for electric vehicle sales, and HiteJinro established Jinbaek Global to enter the cosmetics business.
There were also cases of establishing companies or acquiring shares to expand business capabilities in the renewable energy sector. In the solar power field, Hyundai Motor Company established Naju Hobae Flower Sunlight Power Plant, and Hanwha established Insight Rooftop Solar No. 6. In the hydrogen fuel cell sector, Hanwha established Yeosu Eco Power and Yeosu Pure Power, and HD Hyundai established HD Hydrogen.
Additionally, in the renewable energy sector, LS acquired shares in LFMS, and Kumho Petrochemical established Kumho Green Bio Busan.
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