Kakao, SK added most affiliates in past 3 months: FTC data

IT giant Kakao and the nation’s third-largest conglomerate SK Group saw the biggest increase in their number of affiliates in the past three months among the country’s largest business groups, data showed Friday, reflecting their aggressive expansion plans.

According to data released by the antitrust watchdog Fair Trade Commission, Kakao took 17 affiliates under its wing from August to the end of October, the highest number among other large businesses in the three-month period. SK Group followed with eight affiliates in the same period. 

(Yonhap)

Overall, 28 out of 59 firms deemed as conglomerates or large businesses by the FTC added a combined 54 affiliates in the period. Meanwhile, 17 firms on the list removed a total of 47 affiliates in the same period through spinoffs or the disposal of stakes, bringing the combined number of affiliates under 59 companies to 2,135.

The FTC cited the expansion of online-to-offline, content and tourism businesses as major reasons behind the firms’ latest moves to increase their affiliates.

Kakao recently acquired major local taxi operator Jinhwa Taxi and Jungil Industry through its mobility unit Kakao Mobility, to boost its transportation business. Last year, it purchased a 30 percent stake in Tago Solutions, the operator of taxi-hailing service Waygo.

The mobility firm has reportedly invested more than 65 billion won ($55.7 million) in mergers and acquisitions in the past two years.

In July, Kakao Pay, Kakao’s financial-technology unit, acquired online insurance startup Inbyu, eyeing a foray into the insurance business.

The most notable business expansion by SK this year was the launch of an integrated over-the-top service, Wavve, with the nation’s three terrestrial broadcasters in September.

The OTT platform was born as a result of a merger between SK Broadband’s streaming service platform Oksusu and the terrestrial broadcasters’ joint OTT platform Pooq.

Of the 17 firms that removed affiliates, Daou Kiwoom Group, which owns brokerage Kiwoom Securities, spun off the highest number of affiliates, at 12. The 12 affiliates, managed by Daou Kiwoom Chairman Kim Ik-rae’s family members and relatives, recently became independent businesses.

Chemical-to-textile conglomerate Kolon Group ranked No. 2 with the removal of five affiliates in the cited period.

By Jung Min-kyung (mkjung@heraldcorp.com)