The number of holding companies under conglomerate groups has dropped for the second year, indicating lackluster efforts to improve the corporate governance structure.

According to the Fair Trade Commission's data on holding companies, the total number amounted to 140 this year, up eight from last year. However, those belonging to corporate groups decreased from 31 to 30.

Large firms that have yet to make a transition into a holding company system include Samsung, Hyundai Motor, Lotte and Hyundai Heavy Industries. The companies have also been found to have owned a financial firm or engaged in cross-shareholding.

A holding company system was introduced to South Korea in 1999 with the aim of streamlining the complex cross-shareholding governance structure of conglomerates, boosting transparency and improving the ease of managerial oversight.