Foreign companies managed to expand their presence and improve profitability last year, but pulled back on contributing to South Korean society through investment or hiring. (image: Yonhap)
SEOUL, Aug. 27 (Korea Bizwire) — Foreign companies that earned considerable profits in South Korea last year were relatively indifferent to investment, employment, and other means of contributing to Korean society.
Industry tracker CEO Score analyzed 43 foreign businesses included in last year’s top 500 companies in South Korea, revealing that their investment last year (3.5 trillion won, $3 billion) was 25.5 percent lower than in 2018.
Collectively, they hired 86,187 employees last year, down 4.3 percent from 2018.
Their sales last year, on the other hand, reached 149 trillion won, with operating profits of 5.4 trillion won, increases of 3.8 percent and 7.4 percent, respectively, from the previous year.
These companies managed to expand their presence and improve profitability last year, but pulled back on contributing to South Korean society through investment or hiring.
Among the 43 foreign businesses, 16 hired 1,188 more employees, but 19 others laid off 5,102 employees, part of which includes GM Korea’s restructuring that resulted in laying off 28 percent of the company’s total workforce (3,510 people).
Donations by foreign businesses last year jumped by 6.1 percent, reaching 71 billion won.
However, donations only accounted for 0.05 percent of total sales, which was more or less similar to 2018, and only half of what domestic companies pay in proportion to total sales (0.1 percent).
Ashley Song (ashley@koreabizwire.com)
