Skyline view of Seoul City (image: Kobizmedia/ Korea Bizwire)
SEOUL, Sep. 19 (Korea Bizwire) – The economic value produced by the top-four Korean conglomerates, Samsung Group, Hyundai Motor, SK Group and LG Group, hit 140.2 trillion won, or about US$134.7 billion, in 2013, equivalent to 10 percent of the South Korea’s gross domestic products.
Excluding the four, in contrast, the value-added generated by enterprises in the top 500 plummeted by 13.5 percent compared with the previous year, which shows the fact that the Korean economic value leans too much on a few conglomerates.
CEO Score, a provider of information on large enterprises in Korea, announced on September 17 that the economic value created by 425 corporations among the 500 largest enterprises accounted for 254.16 trillion won last year, equal to 17.6 percent of the total GDP of 1,440 trillion won in 2013. The total added value decreased by 4.8 percent from 2012.
Samsung Group with 19 listed affiliates generated the largest economic value of 68.37 trillion won, or 4.7 percent of the GDP. The No. 1 conglomerate was followed by Hyundai Motor with 18 subsidiaries creating the value added of 37.64 trillion won while LG Group with 14 siblings and SK Group with 19 companies produced the value worth 19.35 trillion won and 14.88 trillion won respectively.
The four business groups achieved a total of 140.2-trillion-won value, up by 3.7 percent compared with the previous year. In addition, the proportion of the value produced by these four conglomerates represented 55.2 percent of the total value, up from 50.7 percent of the previous year. The economic value created by the remaining companies except for the four groups only amounted to 113.9 trillion won, plummeting by 13.5 percent.
The economic value created by 425 corporations among the 500 largest enterprises accounted for 254.16 trillion won last year, equal to 17.6 percent of the total GDP of 1,440 trillion won in 2013. (image: Kobizmedia/ Korea Bizwire)
POSCO ranked No. 5, creating 7.9 trillion won of added value, followed by Lotte Group (7.5 trillion won), KT (6.1 trillion won), Hyundai Heavy Industries (4.6 trillion won), GS Group (3.4 trillion won) and CJ (2.8 trillion won).
In contrast, businesses including Hyundai Group, STX and Pantech incurred losses in its economic value. Hyundai Group posted a loss of 900 billion won.
In terms of industrial sector, the fields of IT, electrics and electronics hit the 79.9-trillion-won value, ranking No. 1, followed by automobile and automotive parts (40.3 trillion won), banking (20.0 trillion won), petrochemicals (19.0 trillion won), retailing (14.8 trillion won), steel making (11.8 trillion won), services (11.5 trillion won) and telecommunications (11.4 trillion won).
By Veronica Huh (veronicah@koreabizwire.com)
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