Slimming Down and Focusing on AI and Semiconductors: Number of Affiliates in Major Conglomerates Drops by 4 in the Last 3 Months

The Number of Affiliates Down by Four in Three Months to 3,534

Clear Trend Toward "Selection and Concentration" in Areas Like AI

Major conglomerates in South Korea are accelerating their 'restructuring and business transformation' pace by decisively selling off or liquidating non-core businesses, while concentrating resources on future high value-added advanced industries such as artificial intelligence (AI) and semiconductors. Even amid an internal drive to streamline operations to cope with economic uncertainties, the 'selection and concentration' strategy—investing extensively to secure new growth engines—is becoming increasingly apparent.

According to the 'Status of Changes in Companies Affiliated with Large Business Groups in the Recent Three Months (May–July 2026)' released by the Fair Trade Commission on the 14th, the number of companies affiliated with the 102 business groups subject to public disclosure with assets of 5 trillion won or more fell from 3,538 as of May 1 to 3,534 as of August 3, marking a decrease of four. During this period, 35 groups newly incorporated 75 companies, while 28 groups excluded 79 companies from their affiliates.

The most notable feature of the recent changes in affiliates is a reorganization of business portfolios through the disposal of non-core operations. SK Group has reduced its exposure to real estate-related businesses by removing five companies—including SK D&D Co., Ltd., a real estate development company—from its affiliates. CJ Group streamlined two companies, including CJ Feed & Care Co., Ltd., an animal feed producer. Similarly, Wonik Group removed three companies, including Plaidy Co., Ltd.—a content production company—thereby shedding business areas that are distant from their core operations.

On the other hand, investments in advanced future industries such as AI, semiconductors, and secondary battery materials have become even bolder. In particular, major conglomerates have been intensifying affiliate incorporations to secure leadership in the AI data center market. Samsung Group has brought into its fold the Korea AI Computing Center Co., Ltd.—a public-private joint venture—and Plact Group Korea Co., Ltd., a data center cooling and air conditioning solutions provider. GS Group newly incorporated four companies, including GS AI Infra Co., Ltd. Similarly, OCI Group accelerated its AI infrastructure business by adding SGC Data Power Co., Ltd. and SGC AI Infra Co., Ltd. to its affiliates.

Mergers and acquisitions (M&As) and establishment of new subsidiaries to strengthen technological competitiveness also continued. Hansol Group joined the semiconductor belt with its acquisition of Will Technology Co., Ltd., a manufacturer of semiconductor inspection components. Hyosung Group broadened its future energy business spectrum by establishing and incorporating HS Hyosung Energy Solution Korea Co., Ltd., a manufacturer of next-generation battery materials, specifically silicon anode materials.

Meanwhile, conglomerates newly designated as large business groups this year, as well as established players, have been actively pursuing affiliate spin-offs and organizational streamlining through independent management by relatives and executives. Line Group, newly added to the list of large business groups this year, excluded four companies—including Sindo Co., Ltd., a relative-controlled entity—from its affiliates through forms such as independent management and liquidation. Woongjin Group also removed four companies, including Geonjin Construction Co., Ltd., which are controlled by relatives or executives, through separate management and liquidation. Huiseong Group and QCP Group reorganized executive-controlled companies by means of executive resignations and liquidations.

Existing conglomerates such as Joongheung Construction (KI Consulting Co., Ltd.), Hyosung (six companies including Jeil Industrial Co., Ltd.), and Bando Holdings (three companies including W&Partners Co., Ltd.) have also reduced the number of affiliates after gaining official recognition for independent management by relatives.

This content was produced with the assistance of AI translation services.