Seoul, South Korea – Internal transactions within South Korea’s largest business groups totaled KRW 193 trillion over the past decade, representing approximately 68.7% of all disclosed internal dealings, according to a recent analysis by the Korea Fair Trade Commission (KFTC).The data, released today, reveals a sustained level of intra-group commerce, with the overall proportion of internal transactions across 92 designated business groups averaging 12.3% of total sales-a figure maintained consistently between 2015 and 2024.
The KFTC’s findings indicate that internal transactions within unlisted companies are substantially higher, at 21.7%, compared to listed companies (7.4%). Transactions with overseas affiliates accounted for KRW 515 trillion, or 22.6% of the total,exceeding domestic affiliate transactions (KRW 281 trillion,12.3%).
Among the groups with the highest proportion of internal transactions in the last year were Daebang Construction (32.9%), JoongAng (28.3%), POSCO (27.5%), BS (25.9%), and Coupang (25.8%).
Hyundai Motors led in the total amount of internal transactions, reaching KRW 59.9 trillion, followed by SK (KRW 52.8 trillion), Samsung (KRW 33.7 trillion), POSCO (KRW 25.1 trillion), and HD Hyundai (KRW 13.3 trillion). These five groups collectively accounted for KRW 184.8 trillion, or roughly 65.7% of all internal transactions within the disclosed groups.
Examining trends over the past 10 years, HD Hyundai and Hanwha experienced the largest increases in internal transactions (7.0 and 4.6 percentage points, respectively), while LG and Lotte saw decreases (7.3 and 2.4 percentage points, respectively). SK Energy and Hyundai Mobis each surpassed KRW 20 trillion in internal transactions.
Industries with the highest proportion of internal transactions include computer programming and system integration (SI), business support services, building technology and engineering services, professional services, and warehouse and transportation-related services.
“The SI industry has been at the top in terms of both the proportion and amount of internal transactions for several years,” noted a KFTC official. “the automobile and trailer manufacturing industry is also an area that needs to be monitored with interest in that it has maintained a high rank in the amount of internal transactions for several years.”
