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Samsung & Hyundai Motor Group Account for 81% of Net Profits of Top 30 Businesses
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Samsung & Hyundai Motor Group Account for 81% of Net Profits of Top 30 Businesses
  • By matthew
  • April 20, 2015, 02:45
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Samsung Group and Hyundai Motor Group accounted for more than four fifths of the net profits of the top 30 business groups last year. 

What is more concerning is that their slice of the pie is increasing. Samsung and Hyundai Motor Group posted combined net profits of 34 trillion won (US$31.46 billion) last year, down 4 trillion won (US$3.7 billion) from the 38 trillion won (US$3.52 billion) of 2010. On the other hand, the earnings from the remaining 28 groups plunged to 8 trillion won (US$7.4 billion) from 42 trillion won (US$38.86 billion) over the same period, shrinking by as much as 34 trillion won (US$31.46 billion). 

Consequently, Samsung and Hyundai's net profits accounted for 81 percent of the total earnings from the top 30 groups last year, a sharp jump from the 38 percent portion in 2010.

According to data compiled by CEOScore, a research firm that tracks conglomerates, on April 19, the total net profits of 1,162 subsidiaries from top 30 groups, which submitted business reports in 2014, amounted to 41.569 trillion won (US$38.46 billion). 

Among them, the earnings of the 118 subsidiaries of Samsung Group and Hyundai Motor Group totaled 33.676 trillion won (US$31.16 billion), accounting for 81 percent of the profits of its 30 business groups. The figure was almost double from 47.5 percent in 2010.

Until 2011, Samsung and Hyundai Motor Group's net profits accounted for less than 50 percent of the total earnings from the top 30 groups, recording 49.2 percent. The figure then surged to 69.1 percent in 2012 and has increased 6 percent every year since then.

In contrast, the combined profits of the 30 groups have cut by half in the past four years. This is largely due to the prolonged global recession. In the meantime, the earnings of Samsung and Hyundai Motor Group reduced relatively far less than others. In the growing competition, the two companies showed relatively better performance. 

Indeed, the net profits of the top 30 groups decreased 48.1 percent to 41.569 trillion won (US$38.46 billion) last year from 80.151 trillion won (US$74.15 billion) in 2010, according to an analysis by CEOScore.

During the same period, the earnings of Samsung and Hyundai Motor Group dropped 11.5 percent to 33.676 trillion won (US$31.16 billion) from 38.038 trillion won (US$35.19 billion), while the figure of the other 28 groups decreased as much as 81.3 percent, or 34.22 trillion won (US$31.66 billion), from 42.113 trillion won (US$38.96 billion) to 7.893 trillion won (US$7.3 billion). 

However, the sales growth rate of Samsung, Hyundai Motor and the remaining 28 groups has not changed much. 

The sales of the top 30 groups last year grew 19.1 percent to 1350.891 trillion won (US$1.25 trillion) from 1133.976 trillion won (US$1.05 trillion) in 2010. 

During the period, the combined sales of the top two players surged 21.8 percent to 468.528 trillion won (US$433.46 billion) from 384.205 trillion won (US$355.45 billion), while the remaining 28 conglomerates saw their sales increase 17.7 percent to 882.363 trillion won (US$816.32 billion) from 749.771 trillion won (US$693.65 billion).

Even though the sales growth rate is similar, profitability showed a significant difference. 

Taking a look at only Samsung Group and Hyundai Motor Group, Samsung Group logged net profits of 20.999 trillion won (US$19.43 billion) last year from the 24.498 trillion won (US$22.66 billion) posted in 2010, showing a 14.3 percent decrease or 3.499 trillion won (US$3.24 billion). Hyundai Motor Group saw its net profits slip 6.4 percent, or 863 billion won (US$798.41 million), to 12.677 trillion won (US$11.73 billion) from 13.54 trillion won (US$12.53 billion) over the same period.

Accordingly, the share of Samsung Group in the top 30 groups increased from 30.6 percent to 50.5 percent during the same period, while Hyundai Motor Group saw the figure increase from 16.9 percent to 30.5 percent.