The brand of Samsung Group is seen at an organization constructing on this file photograph / Korea Instances file
Transactions amongst associates of South Korea’s 10 largest family-run conglomerates, referred to as chaebol, accounted for practically 70 % of the overall disclosed buying and selling in 2025, the nation’s company watchdog mentioned Wednesday.
In keeping with the Honest Commerce Fee (FTC), the overall worth of inter-affiliate transactions by the highest 10 chaebol reached 193 trillion gained ($131 billion) this 12 months, representing 68.7 % of the 281 trillion gained reported by a complete of 92 enterprise teams.
The ten main conglomerates embody Samsung Group, the nation’s largest conglomerate and residential to world reminiscence chip chief Samsung Electronics Co., in addition to multi-industry big SK Group and LG Group.
The FTC mentioned the highest 10 have maintained a mean inner transaction ratio of round 13 % over the previous decade.
Through the cited interval, HD Hyundai and Hanwha recorded the biggest will increase in intra-group transaction ratios, rising by 7 and 4.6 proportion factors, respectively, whereas LG Group and Lotte Group posted the biggest declines, dropping by 7.3 and a couple of.4 proportion factors, respectively.
Inner buying and selling inside chaebol has usually been criticized for permitting proprietor households to safe important earnings by awarding profitable contracts to their subsidiaries.
The FTC famous over the previous 5 years, corporations with larger household possession constantly displayed larger inner transaction ratios.
The same sample was noticed amongst second-generation household stakes, significantly from 2022 onward, with corporations with greater than 50 % second-generation possession displaying markedly larger ranges of inner buying and selling in contrast with earlier years.
By sector, the software program and IT companies {industry}, in addition to the auto and trailer manufacturing sector, ranked highest in each ratios and complete transaction quantities.
The federal government has inspired family-run conglomerates to undertake holding firm buildings to simplify their advanced and opaque governance programs, however the measures have had restricted impact in lowering inner buying and selling.
The FTC emphasised that whereas the amount or proportion of inter-affiliate transactions alone doesn’t show unfair practices, common monitoring and steady oversight stay important to stopping abuse.
Since 2011, the FTC has yearly analyzed and printed information on inner transactions inside disclosed enterprise teams to enhance their practices via market-driven oversight.
