Trillion Won Club
Last year, a total of 22 listed companies exceeded 1 trillion won (US$903.51 million) of operating profits. Three more companies were added to the 19 companies in 2013.
According to financial information services provider FnGuide on March 29, among the firms ending the fiscal year in December, 22 companies in the KOSPI market last year surpassed the 1 trillion won mark in operating profits, excluding banks and financial groups.
Hyundai Steel, CJ, Samsung Fire & Marine Insurance, and Samsung Life Insurance were new members, but SK Innovation failed to join.
Hyundai Steel took over Dongbu Special Steel, which has been renamed to Hyundai Special Steel, last year, and it is about to finalize the takeover of Hyundai Hysco and SPP Yulchon Energy, enlarging the size of the company. Once Hyundai Steel acquires Hyundai Hysco, a steel firm with 20 trillion won (US$18.07 billion) in sales will emerge, contending for first place with POSCO.
CJ is showing distinguished accomplishments not only in the food sector, in which the company ranks first, but also in the entertainment and media sectors. Taking over Korea Express, the company now ranks first in the new distribution and logistics sector in the country.
As Hyundai Engineering & Construction recorded 958.9 billion won (US$866.37 million) in operating profits last year, a 20.9 percent increase from the previous year, it has come close joining the trillion won club.
Meanwhile, the average operating profits of companies that exceeded 1 trillion won in operating profits last year fell short of the figure a year earlier. The average operating profits of its 22 companies in the trillion won club last year decreased by 783.8 billion won (US$708.17 million) to 3.2978 trillion won (US$2.98 billion) from the 4.0816 trillion won (US$3.69 billion) of its 19 companies in 2013.
This was largely because an increasing number of companies saw a sharp drop in operating profits last year, including Samsung Electronics (-31.97 percent), Hyundai Motor (-9.21 percent), Kia Motors (-19.03 percent), SK (-33.73 percent), and Korea Gas Corporation (-27.97 percent).
With GS being added, the number of listed firms of the trillion won club increased from 40 to 41. However, the average sales dropped by 625.4 billion won (US$565.05 million) to 33.6102 trillion won (US$30.37 billion) from 34.2356 trillion won (US$30.93 billion) the previous year.