Excessive Dependence on Large Companies
South Korea’s top 31 private business groups accounted for 66.3 percent of the nation’s total exports last year.
The Korea Economic Research Institute (KERI) announced on August 19 that South Korea’s top 31 private business groups, which all have assets exceeding 10 trillion won and are subject to cross-shareholding restrictions, accounted for 66.3 percent of the nation’s total exports last year.
They also took up 71.4 percent, or 135.5 trillion won (US$120.5 billion), of the nation’s total facilities investment in 2017, which was tallied at 189.8 trillion won (US$169.79 billion).
The top 31 conglomerates donated 2.4 trillion won (US$2.13 billion) as of 2016, accounting for 51.4 percent of the total donations made by companies, while they invested 24.5 trillion won (US$21.79 billion) in research and development (R&D) over the same period, taking up 45.5 percent of 54 trillion won (US$48.02 billion) of the total private R&D investments.
The KERI said, “The top 31 business groups led the nation’s exports. In addition, their investments helped the nation accomplish 3.1 percent of economic growth in 2017.”