15 Korean conglomerates sign 585 stock-grant agreements

  • Fifteen conglomerates entered 585 stock-grant agreements involving executives, controlling shareholders and relatives.
  • Samsung signed 317 agreements, representing 54% of the groups’ total.
  • Related-party transaction rules covered 1,047 companies, while circular shareholding chains fell to 233.

Fifteen major South Korean business groups with controlling shareholders entered 585 new stock-grant agreements for executives, controlling shareholders and relatives last year, up 65.7% from 353 a year earlier, the Korea Fair Trade Commission said. Samsung led with 317 agreements, or 54% of the total, after Samsung Electronics shifted executive incentives from cash to stock-based compensation to strengthen management accountability. Six groups signed 19 agreements involving 11 controlling shareholders or relatives. Separately, the average internal ownership ratio across 89 groups with controlling shareholders was 61.4%, while controlling shareholder families held only 3.5% directly and affiliated companies held 55.5%. The number of companies subject to related-party transaction rules rose to 1,047 across 88 groups, exceeding 1,000 for the first time. Circular shareholding chains fell to 233 from 1,435, largely after Sajo reduced its chains from 1,426 to 220. The FTC said it would monitor any concentration of stock grants among controlling families and related parties.

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