"If It Doesn't Make Money, It's Cut"...Large Corporate Affiliates Down by 42 in Three Months

Korea Fair Trade Commission Releases Three-Month Snapshot of Changes in Large Corporate Groups
SK Excludes 34 Affiliates from the Group Through Divestments and Other Measures

It has been found that large corporate groups in Korea are boldly winding down low-profit, underperforming businesses and accelerating structural reform by pivoting toward new businesses such as bio and renewable energy.

"If It Doesn't Make Money, It's Cut"...Large Corporate Affiliates Down by 42 in Three Months

SK Ecoplant, which sold environmental subsidiaries including Rinyueoseu. The Asia Business Daily DB.

On the 10th, the Korea Fair Trade Commission released data on changes in the affiliates of 92 large business groups that occurred over the past three months (from November 2025 to January 2026. The survey showed that the total number of companies affiliated with large conglomerates stood at 3233, down by 42 from three months earlier.

The most notable characteristic of these changes is strategic restructuring focused on profitability. SK carried out the most aggressive "diet," excluding a total of 34 affiliates from the group through equity sales or mergers, including 25 environmental business affiliates such as Rinyueoseu and Rinyueon, which are engaged in waste treatment and other environmental services. Sono International and Kakao also contributed to portfolio optimization by divesting non-core affiliates related to architectural design and content production, respectively.

By contrast, Samsung newly established two companies, including Episnax Lab in the biotech field, and Samyang created a separate pharmaceutical and bio corporation through a spin-off. Kolon newly established Gyeongju Ungok Wind Power, while LG acquired a stake in a solar power generation company. BS also formalized its entry into new businesses by newly establishing three companies in the power transmission and distribution sectors.

Despite the overall trend of a decrease in affiliates, DB newly brought 11 companies into its group, making it the conglomerate that expanded its number of affiliates the most. Following DB, Eugene, NongHyup, and KT actively established or acquired stakes in real estate development and investment companies, thereby strengthening their asset portfolios.