Data from the Fair Trade Commission (FTC) on Tuesday revealed that insider stock ownership of South Korea’s family-run conglomerates increased in 2023 compared to the previous year. This was attributed to the founding members of the conglomerates seeking to strengthen their control of management.
The insider stock ownership rate of 72 conglomerates with group owners was 61.2%, a 1.3% rise from 2022, and the first time it surpassed the 60% mark. This figure includes stocks held by the founding members, their immediate family, top executives, subsidiaries, and related financial firms.
The insider stock ownership rate of 10 conglomerates without owners was 64.4%, a 1.8% increase from the previous year. Samsung Group’s insider stock ownership rate was 52.06%, a 0.35% uptick from last year; SK Group’s rate was 61.28%, a 0.58% increase; and Hyundai Motor Group’s rate was 56.47%, a 2.05% jump.
Under South Korean law, conglomerates with assets of 5 trillion won (US$3.7 billion) or more are required to disclose their business status and details of large-scale internal trade. Those with assets of 10 trillion won or higher have additional restrictions, such as a ban on cross-shareholding and loan guarantees between affiliates.
colin@yna.co.kr
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