South Korea's major conglomerates have been trimming non-core businesses while expanding into high-value future industries such as AI and semiconductors over the past three months, reshaping their corporate portfolios in the process.

The Korea Fair Trade Commission on Friday released data on affiliate changes among 102 publicly disclosed business groups with assets of 5 trillion won ($3.53 billion) or more, covering May through July this year.

The Teheran-ro area in Gangnam-gu, Seoul [Yonhap]
The Teheran-ro area in Gangnam-gu, Seoul [Yonhap]

The total number of affiliates across these groups fell by four, from 3,538 on May 1 to 3,534 on Aug. 3. Forty-nine business groups saw changes in their affiliate rosters during the period.

Through new incorporations and equity acquisitions, 75 companies joined the fold across 35 groups — 50 through new establishment, two through corporate splits and nine through share acquisitions. In the other direction, 79 companies were removed from 28 groups, including six through absorption mergers, eight through equity sales and 16 through liquidation.

Hyosung added the most new affiliates among all groups, bringing in 11 companies. GS followed with nine and Daemyung Chemical with seven. On the removal side, DB shed the most with 13 companies, followed by Hyosung with eight and SK Group with seven.

The latest changes reflected a broader push to shed non-core operations and streamline business portfolios. SK Group removed five companies from its affiliate roster, including SK D&D, which is involved in real estate development. CJ Group removed two companies, including animal feed manufacturer CJ Feed & Care, while Wonik removed three, including film and content production company Fladdy.

New additions, meanwhile, were concentrated in high-value future industries, including AI, semiconductors and silicon anode materials.

To advance their AI data center businesses, Samsung added Korea AI Computing Center, a public-private joint venture, and Flakt Group Korea, a cooling and air-conditioning solutions company, as affiliates. GS added four companies including GS AI Infra, while OCI added SGC Data Power and SGC AI Infra to its group.

Additions also continued in the semiconductor and battery materials sectors. Hansol brought in Will Technology, a manufacturer of semiconductor inspection components, while Hyosung added HS Hyosung Energy Solution Korea, a maker of silicon anode materials.

Several groups also moved to separate companies controlled by relatives of the group's designated owner or by executives of member companies. Lyne, newly designated this year, removed four companies including Shindo, which is controlled by a family member, while Woongjin removed four — including Geonjin Construction, controlled by relatives and executives — from its affiliate roster.

Heesung removed three companies including Heesung Holdings, and QCP Group removed Pen Investment, through means such as recognition of independent management, executive resignations and completion of liquidation.

Among existing business groups, Joonghung Construction removed KI Consulting, Hyosung removed six companies including Jeil Silup, and Bando Holdings removed three companies including W&Partners, through recognition of independent management by family members.


y2k@heraldcorp.com