Internal Transactions Rise in Major Conglomerates as Second-Generation Shareholding Increases

Kim SangJin Reporter

letyou@alphabiz.co.kr | 2024-11-27 01:37:48

 

 

[Alpha Biz= Reporter Kim Sangjin] In 2023, the proportion of internal transactions within South Korea's major conglomerates slightly increased compared to the previous year, with companies where the second-generation family members held a larger share showing a higher ratio of internal dealings.

According to the Fair Trade Commission (FTC), the proportion of internal transactions within domestic and international affiliates of publicly listed business groups reached 32.5% last year, amounting to ₩704.4 trillion. Of this, 12.8% (₩277.9 trillion) was between domestic affiliates. While the total sales of these groups fell significantly from ₩2246.4 trillion to ₩2132.5 trillion, the internal transaction ratio increased by 0.6 percentage points.

Among the top 10 conglomerates, the internal transaction volume between domestic affiliates totaled ₩194.8 trillion. Hyundai Motor led with ₩62.9 trillion, followed by SK with ₩52 trillion, Samsung with ₩34.6 trillion, POSCO with ₩25.2 trillion, and HD Hyundai with ₩11.6 trillion.

The data also revealed a trend where companies with higher second-generation family shareholding showed a greater proportion of internal transactions. Particularly, companies with second-generation family shareholdings of over 50% saw their internal transaction share increase to 29.0%, up from 25.8% the previous year. Excluding those with 100% second-generation shareholding, most categories showed an increase in internal transaction ratios compared to the prior year.

Industry-wise, sectors such as personal services, business facilities management, and rental services exhibited the highest internal transaction ratios, while the largest transaction amounts were found in manufacturing, transportation, and construction industries.
 

 

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