Expansion of Conglomerates
According to the Fair Trade Commission, Korea’s 65 conglomerates gained 18 new affiliates last month, bringing the total number to 1,759.
Last month, 33 companies were made affiliates of 13 conglomerates, including Mirae Asset, LG, Kumho Asiana and KT. KDB Asset Management and Daewoo Securities officially became affiliates of Mirae Asset. LG Group made Farm Hannong, a company that specializes in crop protection products and fertilizer feeds, an affiliate after purchasing 100 percent of its shares. Kumho Asiana set up an air transport support service provider “AQ” as a subsidiary.
KT, the country’s second-largest mobile carrier, set up a real estate investment company and an information service company “WHOWHO & Company” and made them its affiliates.
On the other hand, 10 conglomerates, including Posco, Shinsegae and Hanwha, lost 15 affiliates through mergers, selling them or shutting down businesses. Posco sold shares of its affiliate Posco LED and merged its Posco Green Gas Technology affiliate.
Shinsegae merged its affiliate SM and Hanwha sold shares of its C-Space, excluding them from their affiliates. Seven conglomerates, such as KT and Hyundai Department Store, also unlisted a total of 11 companies from their affiliates through share sales and merger.