Insider stock ownership at South Korea's family-run conglomerates rose in 2023 from a year earlier, data showed Tuesday, as more founding members sought to tighten their grip on management.
The insider stock ownership rate of 72 conglomerates that have group owners reached 61.2 percent this year, up 1.3 percentage point from 2022 to surpass the 60 percent mark for the first time, according to the Fair Trade Commission (FTC).
Insider stock ownership refers to the stocks held by the founding members and his or her immediate family and top executives of companies affiliated with a business group. This includes stakes held by subsidiaries and related financial firms.
The insider stock ownership among 10 conglomerates without owners came to 64.4 percent, up 1.8 percentage points on-year.
As for top conglomerate Samsung Group, the insider stock ownership rate came to 52.06 percent for 2023, up 0.35 percentage point from the previous year.
Energy-to-telecom giant SK Group saw the rate rise 0.58 percentage point on-year to 61.28 percent. The corresponding rate of automaking group Hyundai Motor Group reached 56.47 percent, up 2.05 percentage points from a year ago.
Under South Korean law, conglomerates with assets of 5 trillion won (US$3.7 billion) or higher are obligated to disclose the status of their businesses, along with details of large-scale internal trade.
Those with assets of 10 trillion won or higher, meanwhile, have more strings attached, including a ban on cross-shareholding and loan guarantees among affiliates.
Source: Yonhap News Agency