Taiwan’s 100 largest companies by market capitalization have surpassed their South Korean counterparts in terms of total market value and operating profits. (Image courtesy of Yonhap)
SEOUL, Apr. 18 (Korea Bizwire) – Over the past decade, Taiwan’s 100 largest companies by market capitalization have surpassed their South Korean counterparts in terms of total market value and operating profits, according to a new analysis.
A study by the corporate data research firm CEOScore, which examined the top 100 non-financial companies in South Korea and Taiwan (excluding financial firms, holding companies, and special purpose entities), found that the combined operating profit of South Korea’s top 100 companies declined from 88.2 trillion won at the end of 2013 to 71.6 trillion won at the end of 2023, a drop of 18.8%.
In contrast, the total operating profit of Taiwan’s top 100 companies soared 136.6% over the same period, from 36.4 trillion won to 86.1 trillion won, overtaking South Korea.
The total market capitalization of South Korea’s top 100 companies grew 88.9% from 828.7 trillion won at the end of 2013 to 1,565.4 trillion won by the end of 2023. However, Taiwan’s top 100 saw their combined market cap surge 205% during that span, from 540.9 trillion won to 1,694.9 trillion won, eclipsing South Korea.
This reversal is heavily influenced by the diverging market cap and profit trends of Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC), the flagship companies of each nation.
As of the end of 2023, TSMC’s market cap stood at 645.6 trillion won, around 177 trillion won higher than Samsung Electronics’ 468.6 trillion won valuation.
Compared to 2013, Samsung Electronics’ market cap increased 131.9% from 202.1 trillion won to 468.6 trillion won, while TSMC’s skyrocketed 571.4% from 96.2 trillion won to 645.6 trillion won.
Operating profits tell a similar story. Over the past decade, Samsung Electronics’ profit dropped from 36.8 trillion won to 6.6 trillion won, whereas TSMC’s soared fivefold from 7.7 trillion won to 38.6 trillion won.
Until 2021, Samsung Electronics maintained a lead over TSMC in operating profits, recording 51.6 trillion won compared to TSMC’s 26.6 trillion won that year. However, in 2022, TSMC’s profit jumped to 48.6 trillion won as Samsung’s declined to 43.4 trillion won, allowing TSMC to take the lead.
Last year, the information technology and electronics sector, which includes Samsung Electronics and TSMC, accounted for the largest share of the top 100 companies’ total market capitalization in both countries.
The 15 major South Korean IT and electronics firms had a combined market cap of 766.2 trillion won, representing 48.9% of the top 100 companies, while 61 Taiwanese IT and electronics companies held a 77.4% share at 1,276.7 trillion won.
Kevin Lee (kevinlee@koreabizwire.com)
