[THE INVESTOR] More than 60 percent of listed South Korean companies’ subsidiaries are based overseas, Financial Supervisory Service said on July 27.

According to the FSS, 6,330 of 10,327 subsidiaries of listed companies are based abroad. Of the total, 573 were established last year, the FSS said.

FSS’s analysis also showed that of the top 100 largest companies’ overseas subsidiaries were based in Asia, with China-based subsidiaries accounting for half of Asia-based subsidiaries of Korean companies. 




The top 100 companies have 3,186 overseas subsidiaries, and those based in China numbered 845. Those based in the US came to 865, accounting for 27.2 percent of the total.

The FSS said that the large number of overseas subsidiaries present potential risks for the credibility of South Korean firms’ accounting records.

Saying that should the country where a subsidiary is located have lax accounting rules, the credibility of consolidated figures could be damaged, the FSS suggested that companies with overseas operations should bolster means to address such issues.

By Choi He-suk (cheesuk@heraldcorp.com)