Economic Concentration
“I’m analyzing the extent of economic concentration of Samsung and Hyundai Motor groups,” said Deputy Prime Minister and Minister of Strategy and Finance Hyun Oh-seok at KT’s Gwanghwamun office on January 13.
Since his remarks were made while Samsung Group and the Hyundai Motor Group constitute more than 33% of Korea’s GDP, the government’s future responses are getting a lot of attention.
The Deputy Prime Minister also remarked, “As government agencies in charge of economic affairs analyze economic polarization, corporations’ economic concentration needs to be analyzed as well.”
According to business performance appraising agency CEO Score, Samsung represented 23% of the country’s GDP in 2012, and Hyundai Motor 12%. The two companies comprised 35.0% in 2012, up 11.9% from 2008 (23.1%). If sales of their business partners are considered, their proportion will be even higher.
In response to the question about investigating subcontractors, the Minister of Strategy and Finance commented, “It is not an in-depth analysis,” adding, “Please do not think the analysis means a change in economic policies.”