Amid signs of military escalation between the United States and Iran that could affect the entire Middle East, it has been revealed that South Korean conglomerates have established a total of 140 local subsidiaries in the region. Analyses conducted by the Korea CXO Institute show that these subsidiaries represent about 2.2% of the total overseas corporations established by 92 designated conglomerate groups in South Korea. Although this number is lower compared to major markets such as the US and Europe, concerns over delayed penetration into this emerging market in the Middle East are significant, especially in light of recent geopolitical developments.

The companies have primarily established their Middle Eastern subsidiaries in various countries, with the United Arab Emirates leading the way with 56 subsidiaries, followed by Saudi Arabia with 38, and Oman with 12. Notably, 8.6% of the total local subsidiaries (14) are located in Iran and Israel, regions that are currently experiencing direct impacts from the ongoing conflicts. Samsung Electronics appears to be the most proactive among the conglomerates, operating 28 subsidiaries in the Middle East, primarily focusing on sectors such as consumer electronics, construction, and pharmaceuticals.

Hyundai Motor Group, LG, and GS Groups follow closely, each with 14 subsidiaries, indicating a strong presence in the regional market. Hyundai notably expanded its operations by establishing 6 new subsidiary corporations in the UAE and Saudi Arabia in 2023. The research highlights that most of the established subsidiaries pertain to sectors such as construction, electronics, and logistics, which are critical for South Korea's ongoing efforts to strengthen its influence and presence in the Middle East. Should the geopolitical tensions persist, disruptions in oil supply and overall construction and infrastructure projects in the region may arise, impacting these companies significantly.