Renewable Energy Business Expansion Through Mergers and Divisions
Key Ideas
- Large business groups in South Korea have been actively expanding their renewable energy business capabilities through the establishment of new companies and acquisitions.
- Significant focus on the solar power generation sector with companies like Hyundai and Hanwha making notable investments in solar power plants.
- Hydrogen fuel cell sector also witnessing growth with companies like Hanwha and HD Hyundai establishing new ventures in this field.
- Mergers and divisions within business groups are aimed at strengthening business capabilities and increasing management efficiency, showcasing a strategic approach to growth.
In the past three months, large business groups in South Korea with assets exceeding 5 trillion won have shown a trend of expanding their renewable energy business capabilities. According to the Fair Trade Commission's report, there have been significant activities such as the establishment of seven new companies or acquisition of stakes in the renewable energy sector. Companies like Hanwha, SM, SK, and Shinsegae have been actively involved in this expansion. Notably, there has been a specific focus on solar power generation, with Hyundai and Hanwha setting up solar power plants. The hydrogen fuel cell sector is also gaining traction, with companies like Hanwha and HD Hyundai venturing into this area. Apart from investments, there have been strategic mergers and divisions within business groups to enhance business expertise and management efficiency. Companies like SK, Hanwha, Kakao, and Naver have engaged in such restructuring activities. Furthermore, the establishment of new companies and acquisition of stakes for diversification purposes have been observed, indicating a forward-looking approach by companies like POSCO and SM towards exploring new business opportunities in the market.