South Korea's top 30 conglomerates have shifted their overseas business focus from China to the United States over the past decade. While the number of subsidiaries in the U.S. has more than tripled, those in China have decreased. Analysts attribute this change to the U.S.-China trade conflict and increased investment in local production in the U.S.
On November 4, CEO Score, a corporate data research institute, reported that as of the end of June, the total number of overseas subsidiaries among 28 comparable groups from the top 30 reached 4,935, marking a 62.9% increase from 3,029 in 2016.
By country, the U.S. accounted for 1,308 subsidiaries, representing 26.5% of the total. This is an increase of 914 from 394 a decade ago. In contrast, the number of subsidiaries in China fell from 700 to 529, a decrease of 24.4%. The share of overseas subsidiaries also rose for the U.S. from 13.0% to 26.5%, while it dropped for China from 23.1% to 10.7%.
However, changes in the number of subsidiaries do not necessarily reflect the actual scale of production facility relocations. Mergers and acquisitions, new business ventures, and corporate spin-offs have also influenced the rise and fall of subsidiaries by country.
Among the groups, Hanwha had the highest number of overseas subsidiaries at 889. Notably, its U.S. subsidiaries increased from 63 to 374, a rise of 311. This growth was driven by expansions in solar power and energy storage systems, as well as the acquisition of a U.S. shipyard.
SK Group's U.S. subsidiaries grew from 40 to 243, primarily due to the expansion of battery, energy solutions, and pharmaceutical contract manufacturing businesses. Hyundai Motor Group also increased its U.S. subsidiaries from 55 to 112, fueled by investments in local production facilities and entry into the robotics sector.
Samsung's U.S. subsidiaries rose from 52 to 95, thanks to its acquisition of Harman and joint ventures in battery production. LG also expanded its U.S. presence from 30 to 64 through the establishment of battery production facilities and joint ventures. The five largest groups saw their U.S. subsidiaries grow from 240 to 888 over the decade.
In China, Lotte experienced the largest decline, with its subsidiaries dropping from 80 to 13, a reduction of 67. LG also saw a decrease from 85 to 50, reflecting the sale of its LCD business and the spin-off of LX.
Outside of the U.S. and China, Vietnam saw an increase in subsidiaries from 114 to 221, while France surged from 14 to 189. Among the top 10 countries for overseas subsidiaries this year, China was the only nation to experience a decline compared to a decade ago.
CEO Score's representative, Jo Won-man, stated, "The intensification of the U.S.-China trade conflict and changes in U.S. tariff policies have influenced the restructuring of overseas bases for large corporations."
* This article has been translated by AI.
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