Chaebol increase their subsidiaries by 18
Published: 01 Jun. 2016, 20:59
According to the Fair Trade Commission on Wednesday, 33 companies were made affiliates of 13 conglomerates, including the country’s largest brokerage firm, Mirae Asset, along with LG, Kumho Asiana and KT.
Last month, KDB Asset Management and Daewoo Securities officially became affiliates of Mirae Asset. The acquisition of Daewoo Securities included some smaller affiliates, including a company that specializes in private equity. As a result, the number of new affiliates acquired by Mirae Asset last month totaled nine.
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 for 424.5 billion won ($356.3 million). LG also acquired smaller affiliates that operated under Farm Hannong, which boosted the number of its new affiliates to nine last month.
Kumho Asiana and KT both added affiliates by creating new businesses. The nation’s second-largest airline group set up an aircraft carrier support company, while KT, the country’s second-largest mobile carrier, set up a real estate investment company and information service company last month.
On the flip side, 10 conglomerates, including Hanwha, Posco and Shinsegae, lost 15 affiliates through mergers, selling them or shutting down businesses.
Posco sold its affiliate Posco LED, which was established in 2010 to specialize in industrial lighting, to a consortium led by E-Mart. It merged its Posco Green Gas Technology affiliate, which specializes in synthetic natural gas, into the main company, part of a corporate restructuring that has been in progress since last year.
BY LEE HO-JEONG [[email protected]]
with the Korea JoongAng Daily
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