STX Group trades most among affiliates

By Kim Da-ye

STX Business Group topped the list of 30 conglomerates in terms of portion of trading volume among their affiliates against total revenue, according to Chaebul.com, a website focusing on large corporations.

With its affiliates including STX Offshore & Shipbuilding, STX Pan Ocean, STX Energy and STX Construction, the group recorded a trading volume within affiliates of 4.5 trillion won ― nearly 29 percent of its 15.8 trillion-won revenue.

A high ratio of internal trading raises concerns that affiliates of large corporations trade less with small and medium-enterprises in similar sectors.

The next on the list was OCI Company whose affiliates produce inorganic chemicals, petro and coal chemicals, fine chemicals and renewable energy. More than 1.24 trillion won ― 23.65 percent of the 5.24 trillion won revenue ― was traded within the group.

It was followed by Hyundai Motor whose affiliates sold and bought goods worth 18.81 trillion won among them. The figure was nearly 20 percent of its total revenue at 94.73 trillion won.

In contrast, Hanjin Heavy Industries & Construction, on the very bottom of the list, recorded 17.9 billion won of goods traded within the group ― only 0.44 percent of its 4.1 trillion won revenue. Hyundai Group and Dongkuk Steel Group also showed low ratios at 1.78 percent and 3.27 percent respectively.

Chaebul.com also broke down the figures into the amount purchased and the amount sold internally within the groups. Samsung Electronics, for instance, had its affiliates buying 22.15 percent of goods from each other while selling only 4.71 percent. Hyundai Motor’s affiliates also made 21.43 percent of the total purchase within the corporation.