Data confirms top conglomerates are recycling export earnings abroad instead of repatriating cash to South Korea

South Korea’s Fair Trade Commission (FTC) reported Wednesday that internal transactions among the country’s top 10 business groups reached $131.6 billion (193 trillion won) so far this year, accounting for 68.7% of all disclosed inter-affiliate trading. The data highlighted a sharp divergence between domestic and offshore activity, with internal trading involving foreign affiliates totaling $351.3 billion (515 trillion won) — nearly double the volume of domestic transactions — while aggregate trademark fees collected by holding companies rose to about $1.5 billion (2.15 trillion won).

The FTC identified a “distinctly higher” internal trading ratio in affiliates where second-generation owner families hold more than a 50% stake, a trend that has accelerated since 2022. While the average internal trading ratio across all disclosed groups has remained stagnant at roughly 12% over the last decade, specific strategic sectors saw notable increases, with HD Hyundai and Hanwha posting the sharpest rises in intra-group transaction volume at 7.0 and 4.6 percentage points, respectively.

South Korea’s Fair Trade Commission (FTC) reported Wednesday that internal transactions among the country’s top 10 business groups reached $131.6 billion (193 trillion won) so far this year, accounting for 68.7% of all disclosed inter-affiliate trading. The data highlighted a sharp divergence between domestic and offshore activity, with internal trading involving foreign affiliates totaling $351.3 billion (515 trillion won) — nearly double the volume of domestic transactions — while aggregate trademark fees collected by holding companies rose to about $1.5 billion (2.15 trillion won).

The FTC identified a “distinctly higher” internal trading ratio in affiliates where second-generation owner families hold more than a 50% stake, a trend that has accelerated since 2022. While the average internal trading ratio across all disclosed groups has remained stagnant at roughly 12% over the last decade, specific strategic sectors saw notable increases, with HD Hyundai and Hanwha posting the sharpest rises in intra-group transaction volume at 7.0 and 4.6 percentage points, respectively.

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