지주회사 (jijuhoesa)

A company whose main business is owning controlling stakes in other group companies.

지주회사 (jijuhoesa) is a holding company: a company whose main business is owning shares in its subsidiaries. Many Korean business groups have reorganised so that a listed holding company sits at the top, for example LG Corp. and SK Inc.

Holding companies often trade below the value of the stakes they own (the 'holding company discount'). Korean law sets minimum stakes a holding company must keep in its subsidiaries.

Also called: holdco · parent company