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Korean Conglomerates Added 24 Subsidiaries in One Month
Business Expansions
Korean Conglomerates Added 24 Subsidiaries in One Month
  • By Jung Suk-yee
  • April 4, 2017, 04:45
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The number of companies belonging to the 27 Korean business groups subject to cross-shareholding restrictions increased by 24 in a month and totaled 1,155 as of April 1.
The number of companies belonging to the 27 Korean business groups subject to cross-shareholding restrictions increased by 24 in a month and totaled 1,155 as of April 1.

 

The Fair Trade Commission of Korea announced on April 3 that the number of companies belonging to the 27 South Korean business groups subject to loan guarantee and cross-shareholding restrictions increased by 24 in a month and totaled 1,155 as of April 1. In comparison to last month, 34 have been newly added and 10 have been excluded.

The number of subsidiaries increased in Hanwha, Kumho Asiana, CJ, Nonghyup and POSCO. Yangju Environment became one of the subsidiaries of Hanwha and Hanwha Engineering & Construction is the largest shareholder in the sewage and wastewater treatment company.

Kumho Asiana set up Kumho Invest as an investment firm and incorporated it as a subsidiary. CJ acquired shares of Songrim FS, a food manufacturer. POSCO incorporated Poca-Stem, which conducts research and development related to natural sciences, as its subsidiary. Global Marine Financing and its 29 subsidiaries became those of Nonghyup.

Eight business groups, including Hanjin, OCI, LG and Lotte, excluded 10 companies from their lists of subsidiaries. For example, Hanjin sold its shares in Hanjin Shipping Gyeongin Terminal and Hanjin Shipping, recently declared bankrupt, was excluded as well.

LG and OCI sold their shares in Farm Biotech and Etec Infra, respectively. Lotte sold its shares in Universal Studios Korea Resort Asset Management Corporation and liquidated Igis I Corporation. In addition, Mirae Asset, POSCO, KT and Daelim excluded four companies by means of merger and so on.