Amid growing global attention on the Middle East due to an armed conflict between Israel and the Palestinian militant group Hamas, the number of overseas subsidiaries established by large Korean companies has surpassed 110 in major Middle Eastern countries, according to a survey.
The Korea CXO Institute, which specializes in corporate analyses, released the results of an analysis of overseas subsidiaries established by 82 large Korean companies in Middle Eastern countries on Oct. 25. The 82 companies were selected as large Korean companies by the Korea Fair Trade Commission (KFTC). The Middle Eastern countries were 16 countries including Saudi Arabia. The survey targeted overseas affiliates in which Korean companies hold 50 percent or greater stakes.
The Middle East refers to the Islamic region of West Asia and North Africa, excluding Turkey. The survey covered Lebanon, Bahrain, Saudi Arabia, Syria, the United Arab Emirates, Yemen, Oman, Jordan, Iraq, Iran, Israel, Egypt, Qatar, Kuwait, Cyprus, and Palestine.
According to the findings, 82 Korean business groups have 113 foreign subsidiaries in 10 Middle Eastern countries. By country, they have 44 subsidiaries in the United Arab Emirates alone. Samsung Group has the most with 10, and LG Group has seven. They have 24 subsidiaries in Saudi Arabia, the second most among those Middle Eastern countries. Among Korean groups, Samsung has the largest number of subsidiaries in Saudi Arabia with four.
The 82 Korean business groups have 11 subsidiaries each in Oman and Egypt. The two nations are followed by Israel (8), Jordan and Iran (4 each), Cyprus (3), and Bahrain and Kuwait (2 each). In the case of Samsung, the company operates 10 corporations in the UAE, followed by Israel (5) and Saudi Arabia (4). Samsung is doing its business in the UAE through Samsung Gulf Electronics Co. Ltd., an electronics sales company established by Samsung Electronics, and SAM Gulf Investment Limited, an investment company controlled by Samsung C&T.
Three of Samsung’s four corporations in Saudi Arabia are construction-related players. These include Samsung C&T Corporation Saudi Arabia, the majority shareholder of which is Samsung C&T.
Hyundai Motor Group has eight subsidiaries in key Middle Eastern countries. In particular, it has three affiliates each in the United Arab Emirates and Egypt. In the UAE, the Korean automotive group has Kia Middle East & Africa FZE (Kia MEA), a company that manufactures finished vehicles and provides sales support. In Egypt, Mobis Auto Parts Middle East Egypt is active as a company that sells auto after-sales parts. In Saudi Arabia, the Middle East Engineering Development Co. has been engaging in business for over 40 years. The company was established by Hyundai Engineering & Construction in November 1978.