An EV charging facility (Image courtesy of Incheon city)
SEOUL, Aug. 1 (Korea Bizwire) – Over half of South Korea’s leading corporations have failed to launch a single new business venture in the past five years, according to a recent study.
Even Samsung Electronics, the country’s largest conglomerate, has not added any new business objectives to its portfolio in the last decade.
A report released on July 31 by CEO Score, a corporate data research firm, examined the business expansion efforts of 331 companies among South Korea’s top 500 firms that have submitted business reports since 2018.
The findings reveal a stark picture of corporate inertia: 175 companies, or 52.9% of those surveyed, have not added any new business objectives to their portfolios.
The remaining 156 companies introduced a total of 684 new business objectives. However, only 487 (71.2%) of these new ventures are currently operational, while 197 (28.8%) remain unrealized.
Notably, 15 companies, including IS Dongseo, Daou Technology, and Hanwha Ocean, added new business objectives but have yet to implement any of them.
Among the new business areas, future mobility technologies emerged as the most popular, with 22 companies venturing into this field.
Other favored sectors include energy (17 companies), artificial intelligence and big data (17 companies), eco-friendly technologies (13 companies), and smart manufacturing processes (9 companies).
In the future mobility sector, companies like Hyundai Glovis, NVH Korea, iMarketKorea, Lotte Chemical, and CJ Logistics are leading the charge.
Hyundai Glovis, for instance, has added four new business objectives related to future mobility infrastructure, including electric vehicle charging, hydrogen vehicle fueling, and hydrogen storage.
The energy sector has attracted investments from diverse companies such as HD Hyundai Oilbank, Kyeryong Construction Industrial, Hanjin, Korea Gas Corporation, and S-OIL.
Solar power generation has emerged as a particularly popular venture, with seven companies, including Hanjin, BGF Retail, and Lotte Hotel installing solar panels on idle spaces like parking lots and factory rooftops.
In the AI and big data realm, seven credit card companies, including Shinhan Card, Hana Card, and Samsung Card, have expanded their business objectives.
SK Telecom has leveraged its AI and digital transformation capabilities to venture into X-ray imaging and diagnostics for veterinary clinics, while Cosmax is operating an AI-powered hyper-personalized beauty platform.
SK Ecoplant has been the most aggressive in adding eco-friendly business objectives, with 11 new ventures in areas such as wastewater treatment, carbon capture, and energy management systems.
Daehan Flour Mills topped the list of companies adding new business objectives, with 43 additions over the past five years. However, only 14 (32.6%) of these new ventures are currently operational.
The company has capitalized on the popularity of its Gompyo brand adding 15 new brand marketing-related businesses, ranging from food items like beer and popcorn to clothing and household goods.
Kevin Lee (kevinlee@koreabizwire.com)
