Samsung and some major conglomerates in Korea have seen the number of their subsidiaries decline over the past seven months amid escalating criticism over their excessive expansion, data showed Sunday.
Samsung Group, the country’s largest family-controlled conglomerate, known as chaebol, had 79 affiliates under its wing as of Sunday, down four from July last year, according to the data by industry sources and the Fair Trade Commission, the corporate watchdog.
Samsung, whose flagship is tech giant Samsung Electronics Co., has hived off six subsidiaries through stake sales or mergers since July, while adding two companies.
The data also showed Hyundai Motor Group, the country’s No. 2 chaebol by assets, also slashed the number of its subsidiaries to 55 from 61 over the cited period. Hyundai’s major subsidiaries include top carmaker Hyundai Motor Co. and its smaller affiliate Kia Motors Corp.
Other major conglomerates also reduced the number of their affiliates.
Retail giant Lotte Group had 77 subsidiaries, down six from July, with the number of Hanwha Group dropping to 53 from 56.
The fall in the number of chaebol affiliates comes as the country’s major conglomerates are under growing flack for their cutthroat expansion amid growing calls for the need for reforming the industrial behemoths.
