SEOUL, Oct. 20 (Korea Bizwire) — A parliamentary investigation disclosed that the volume of earned surplus stocked up by large corporations has increased at a fast pace for the past few years.
According to Congressman Lee Jong-kul (New Politics Alliance for Democracy) on October 18 based on data submitted by the Financial Supervisory Service, the total amount of earned surplus for top-ten companies including Samsung Electronics and Hyundai Motor as of the end of June 2014 was 395.5 trillion won. This is more than the national budget for the 2015 fiscal year of 376 trillion won.
Of this, Samsung Electronics accounted for 37.4 percent (148 trillion won) and Hyundai Motor 21.9 percent (86.7 trillion won). It was then followed by POSCO (10.7%, 42.5 trillion won), SK (8.7%, 34.5 trillion won), and LG (7.3%, 28.9 trillion won). The share of top-five companies among top-ten largest corporations in terms of earned surplus was 86 percent.
Lawmaker Lee commented, “Large corporations pile up cash inside their companies while holding out for investment to buoy up the economy. Just like other countries in the United States, Japan, and Taiwan, we need to consider imposing higher taxes on retained earnings at levels above certain level deemed adequate.”
By Sean Chung (email@example.com)