Account for 20% of Sales of All Korean Corporations
Corporate tracker Korea CXO Institute announced on Aug. 9 that the sales of South Korea’s top four business groups (Samsung, SK, Hyundai Motor and LG) accounted for 19.9 percent of the sales of all South Korean corporations in the period of 2011 to 2020. It also said that the ratio is 30 percent and 40.5 percent in the case of operating and current net profits, respectively.
In that period, the overall corporate sales increased from 3,286 trillion won to 4,115 trillion won, the annual average was 3,745.9 trillion won, and the annual average of the four groups was 746 trillion won.
Samsung Group accounted for 8.2 percent of the overall annual average. In 2012, its sales were 312 trillion won, 9.1 percent of the average. The group recorded the same ratio in 2013 with annual sales of 318 trillion won. In the 10-year period, Hyundai Motor, SK and LG made up 4.5 percent, 4.1 percent and 3.2 percent of the overall corporate sales, respectively.
In that period, the average annual operating profit of the corporations was approximately 177 trillion won and that of the four was 53.7 trillion won. Samsung Group’ average annual operating profit was equal to 15.3 percent of the corporations’ and the ratios of SK, Hyundai Motor and LG were 6.5 percent, 6 percent and 2.5 percent, respectively. In 2018, Samsung Group’s operating profit was 51.7 trillion won, 22.1 percent of the total.
When it comes to the average annual current net profit, the corporations and the four posted 116.2 trillion won and 47 trillion won, respectively. Samsung Group accounted for 21 percent of the total in the 10-year period, when its net profit exceeded the net profit of the other three.
The institute pointed out that the figures are evidence of how important the four groups are in the South Korean economy and policies for more major business groups’ growth are essential for further growth of the economy.