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Total Added Value of Top 30 Korean Business Groups Decreased Last Year
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Total Added Value of Top 30 Korean Business Groups Decreased Last Year
  • By Jung Suk-yee
  • October 22, 2015, 00:00
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According to market research firm CEO Score, 293 subsidiaries of the 30 largest business groups in Korea created a total added value of 207.6359 trillion won (US$182.6179 billion) last year, showing a 0.6 percent decrease from a year ago. During the same period, Korea’s GDP increased by 3.3 percent to 1.426 quadrillion won (US$1.255 trillion), and the ratio of the added value to the GDP fell from 15.1 percent to 14.6 percent. The ratio declined from 12.7 percent to 12.1 percent and from 10.3 percent to 10.1 percent when it comes to the top 10 and top four groups, respectively.

The top 10 groups’ total added value showed a particularly significant decrease. Specifically, it fell by 0.9 percent to 152.293 trillion won (US$133.867 billion) and the decrement was 1.5916 trillion won (US$1.3989 billion), exceeding the 30 groups’ total decrement by a margin of 301.8 billion won (US$265.1 million). The Samsung Group’s figure fell by 5.6 percent to 67.9163 trillion won (US$59.6529 billion) between 2013 and 2014, along with those of Hyundai Heavy Industries (-65.7 percent, -2.6682 trillion won or -US$2.344 billion), GS (-11 percent, -426.7 billion won or -US$374.9 million), POSCO (-2.8 percent, -225.6 billion won or -US$198.1 million) and Hanjin (-2.9 percent, -123.9 billion won or -US$108.8 million).

Dongbu recorded a decrease of 94.3 percent, equivalent to 1.4187 trillion won (US$1.2485 billion). The decrements and percentages were 709.6 billion won (US$624.7 million) and 60.1 percent for Daelim, 645.3 billion won (US$568.2 million) and 65.6 percent for S-Oil, 181.8 billion won (US$160.1 million) and 29.7 percent for Dongkuk Steel, 102.2 billion won (US$90.0 million) and 8.3 percent for Young Poong, 89.8 billion won (US$79.1 million) and 1.2 percent for KT, 89.8 billion won and 5.8 percent for LS, and 80.5 billion won (US$70.9 million) and 4.5 percent for Daewoo Shipbuilding & Marine Engineering.

In contrast, the SK Group increased its added value by 2.4089 trillion won (US$2.1210 billion) as in the cases of the Hyundai Motor Group (+1.7316 trillion won or US$1.5250 billion), LG (+926.9 billion won or US$816.2 million), Lotte (+463.7 billion won or US$408.4 million) and Hanwha (+314.4 billion won or US$276.8 million). Likewise, Daewoo Engineering & Construction posted an increase of 1.0651 trillion won (US$937.6 million), Kumho Asiana 540.8 billion won (US$476.1 million), Mirae Asset 461.2 billion won (US$406.0 million), CJ 453.6 billion won (US$399.4 million), Hyosung 327.8 billion won (US$288.5 million), KCC 266.1 billion won (US$234.3 million), Hyundai 195.5 billion won (US$172.1 million), Shinsegae 149.2 billion won (US$131.4 million), Doosan 99.8 billion won (US$87.9 million), OCI 32 billion won (US$28.2 million) and Hyundai Department Store 28.3 billion won (US$24.9 million).

The Samsung Group’s added value accounted for 4.8 percent of Korea’s GDP, followed by that of the Hyundai Motor Group (2.4 percent), LG (1.5 percent), and SK (1.4 percent). Samsung Electronics’ added value fell 14.2 percent to 38.4967 trillion won (US$33.8925 billion), and Hyundai Heavy Industries lost 1.7979 trillion won (US$1.5829 billion) to show a rate of decrease of 65.5 percent like Dongbu Steel (-1.5235 trillion won, -US$1.3413 billion or -500.8 percent) and GS Caltex (-1.2289 trillion won, -US$1.0822 billion or -70 percent). The added value increased by more than a trillion won in SK Hynix (+2.0409 trillion won, US$1.7972 billion or +28.3 percent), Samsung Life Insurance (+1.5093 trillion won, US$1.3291 billion or +141.3 percent), Hyundai Steel (+1.3998 trillion won, US$1.2327 billion or +62 percent), Daewoo Engineering & Construction (+1.0651 trillion won, US$937.8 million or +342.6 percent), and GS Engineering & Construction (+1.0539 trillion won, US$928.06 million).