This paper analyzes equity holding structures of Korean business groups by applying methodologies of social network analysis (SNA). In particular, it analyzes centralities and prestiges of affiliated firms in each business group and examines how cohesive and centralized their networks of affiliated firms are.

The main findings are as follows. First, Korean business groups are very heterogeneous in the levels and trends of SNA indices. Second, the yearly trends of SNA indices substantially vary according to three methods of measurement. Third, the values of SNA indices such as centrality, prestige, centralization, and cohesiveness tend to increase as the asset size of business groups decreases. Fourth, in most business groups, central actors who have the highest values in terms of centrality have ‘persistently’ played a central role in each group’ equity-holding network. Finally, consideration of both direct and indirect equity investments reveals much greater centrality of each group’s controlling shareholder who is located at the very top of the equity-holding chain.