It found that large mergers and acquisitions (M&A) and shifts to holding-company groups increased large corporations' affiliate equity ratios from a year earlier this year. But the owner families' equity ratio is still in the 3% range.
The Fair Trade Commission on the 10th released an analysis titled "2025 analysis of stock ownership status of business groups subject to disclosure." The analysis covered 81 business groups with an owner out of the 92 business groups subject to disclosure this year (3,090 affiliated companies).
According to the Fair Trade Commission, the internal equity ratio of the business groups analyzed was 62.4%, a slight increase from last year (61.1%). The internal equity ratio refers to the share of an affiliate's total outstanding shares held by the same person and relatives, affiliates, nonprofit corporations, executives, and treasury shares as the owner "side" equity.
The Fair Trade Commission said, "M&A by Hanjin and Hankook & Company, and the transition of Global Sae-A, LIG, and Bithumb into holding-company groups raised affiliates' equity ratios."
The owner families' equity ratio is 3.7%. Business groups with high owner equity ratios include KRAFTON (29.8%), Booyoung (23.1%), Bando Holdings (19.3%), Amorepacific (17.1%), and DB (16.5%).
Business groups with high second-generation owner equity ratios include Nexon (64.5%), Bando Holdings (22.5%), Hankook & Company Group (21.7%), Sono International (10.8%), and Aekyung (10.6%).
Listed companies with treasury share ratios of 5% or more include Mirae Asset Life Insurance (34.2%), LOTTE Corporation (32.3%), TY Holdings (29.2%), Inveny (28.7%), SK (24.6%), and Taekwang Industrial (24.4%).
Of the 81 business groups, 13 groups this year entered into 353 stock grant agreements with owners, relatives, and executives as performance rewards. By type, restricted stock units (RSUs) were the most common at 188 cases. Under RSUs, shares are granted when conditions are met after the agreement is signed.
There were 1,087 cases of PSUs, which grant phantom shares equivalent to a certain percentage of annual salary and determine the final payout in line with performance in boosting corporate value. There were 51 cases of stock grants, an agreement to pay short-term incentives in shares. Six groups agreed to grant shares to owners and relatives, and Hanwha and Eugene last year signed RSU contracts with second-generation owners.
A noteworthy point in this status analysis is that business groups subject to disclosure voluntarily unwound circular and cross-shareholdings. KG reduced 10 circular shareholding loops it held before being designated a business group subject to disclosure in 2020 to two. It dissolved all cross-shareholdings (KG Chemical, KGINICIS). TAE KWANG CORPORATION had two circular shareholding loops created by a 2018 merger, but has now unwound them all.
Among the business groups analyzed, 116 overseas affiliates of 34 groups were found to be investing, directly or indirectly, in 90 domestic affiliates. Groups with many overseas affiliates investing in domestic affiliates include Lotte (21), Hanwha (13), SK (11), Kakao (9), and Naver (7).
This year, 958 companies belonging to 81 groups are subject to regulations on unfair private benefits. Companies subject to the regulations are those in which the owner family holds 20% or more equity, or other companies in which that company holds more than 50% equity. Of these, 391 companies have owner family equity holdings of 20% or more, and 567 companies are those in which the relevant company holds more than 50% equity.
The Fair Trade Commission said, "We will closely analyze and disclose key information on large business groups, including the voting status of public corporations and the status of debt guarantees, governance structures, and internal transactions," adding, "We will strengthen market monitoring and checks and induce voluntary improvements by business groups."