The corporate rankings of South Korea’s large businesses fluctuated sharply last year with further changes expected in 2014 as many struggle to cope with difficult times

2014-01-08 11:06

Conglomerates’ rankings change due to economic slowdown

The corporate rankings of South Korea’s large businesses fluctuated sharply last year with further changes expected in 2014 as many struggle to cope with difficult times, local data showed Wednesday.According to CEO Score, an online corporate productivity evaluation site, the rise and fall of conglomerates in 2013 was the most volatile since the 1998 Asian financial crisis.
STX, Tongyang and Woongjin groups faced outright dissolution or came close to losing their status as the 50 largest conglomerates in the country, it said. Tongyang was excluded from restrictions governing cross-unit investment by the Fair Trade Commission (FTC) last year, effectively striping the group of its status as a large conglomerate.
The Internet information provider also said Hanjin, Hyundai and Dongbu, which all announced self-help programs, faced the risk of being downgraded on the ranking list this year. The three family-owned conglomerates, or chaebol, have said they plan to sell assets that can affect earnings and growth potential.
In the case of Hanjin, which ranks ninth on the top chaebol list, the conglomerate announced it will sell off its shares in S-Oil Corp. and other non-essential holdings that could cause the size of its assets to contract by around 3.9 trillion won. This change could cause it to slip to 11th place.
Dongbu, too, will likely slip three notches to 20th place in the New Year as it tries to sell businesses to generate cash. It said plans are underway to dispose of Dongbu HiTek Co., its computer chip foundry arm, and Dongbu Metal Co.
Hyundai’s planned sale of its financial affiliates such as Hyundai Securities Co. and Hyundai Asset Management Co. can reduce its overall holdings by 4 trillion won, pushing its standing down from 21st place to 25th.
Within the top 10, the latest findings based mostly on public data released by the FTC showed GS Group sidestepping Hyundai Heavy Industries Co., the world’s largest shipbuilder, to rank seventh. This rise was brought on by the group taking over STX Energy.
Among the six largest chaebols, the ranking has not changed with the pack being led by Samsung, Hyundai and SK. They are followed by LG, Lotte and steelmaker POSCO.
In the past decade, CEO Score said Hansol, Daewoo Engineering and Construction, Kolon, KCC, Dongkuk Steel, Hyosung and Hyundai Development all witnessed their respective standings fall.
On the positive side, from 2004 through 2013, Booyoung, Halla, Mirae Asset and Kyobo Life Insurance have all made strides to expand their market presence.
Booyoung, which specializes in construction, climbed to 22nd late last year from 36th a decade earlier, with Halla and Mirae Asset standing at 39th and 33rd places, respectively.
Kyobo Life Insurance finished last year in 43rd place with S-Oil, owned by Saudi Aramco, the world’s largest oil company, and GM Korea, the South Korean unit of U.S. automaker General Motors Co., coming in 23rd and 28th. (Yonhap)