À̹ÌÁö È®´ë Owners and families of large business groups in South Korea still commanded over 170 companies outside the corporate family tree even after converting business structure to holding system, according to the antitrust agency Monday.
According to the latest finding by Fair Trade Commission (FTC), a total 23 large business groups in Korea were under a holding structure as of end of September, up from 22 last year. They refer to the business groups whose total assets of the parent company combined with those under the family tree - son and grandson included – take up more than half of total assets of the conglomerate.
Three – Lotte, Hyosung, and HDC – shifted to a holding company structure over the past year, and Aekyung newly joined as a large business group while under holding company system. Meritz Financial Group, Hanjin Heavy Industries, and Hansol, meanwhile, dropped out of the category.
Of 23 transformed large business groups, 21 were run by owner family name, with average share ownership of the holding company at 27.4 percent by owners and 49.7 percent by their families as of end of September.
When compared to last year, overall share ownership fell from 28.2 percent and 44.8 percent, respectively, data showed, but total shares owned by the owner and his or her family group increased this year. This comes as shares owned by leaders of Hyosung and Aekyung are relatively low at 9.4 percent and 7.4 percent each while those owned by their families are higher at 53.3 percent and 45.9 percent.
À̹ÌÁö È®´ë Data showed that large business groups that shifted into holding company system owned 760 of 962 affiliates under its arm, which translates into 79 percent transfer rate or the number of holding company and subsidiaries, sub-subsidiaries, and sub-sub subsidiaries divided by the number of entire affiliates.
On the other hand, FTC data showed that owner family of large business groups directly controlled 170 affiliates outside holding company system, raising concerns about risks over private interest and unfair internal transactions. A total 81 companies were subject of private-interest regulation and 28 in regulation blind area, indicating that 64 percent of 170 companies or 109 companies are under potential risk of the owner and their families abusing power for private interest.
FTC data, meanwhile, showed that average internal transaction of large business groups with holding company system reached 15.83 percent as of end of September, down from 17.16 percent last year. The figure is still higher than 9.87 percent average of remaining 59 large business groups.
By Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]