The combined operating profit of Samsung Group and Hyundai Motor Group took up over 30 percent of all South Korean companies’ operating profit for the first time
January 13, 2014 Leave a comment
Samsung, Hyundai Motor operating profit portion tops 30% for first time
2014.01.13 15:06:27
The combined operating profit of Samsung Group and Hyundai Motor Group took up over 30 percent of all South Korean companies’ operating profit for the first time. This raises a concern that the Korean economy’s heavy reliance on the two conglomerates would increase instability in the financial market and real economy when the country is hit by a crisis. The aggregate operating profit of the top 10 conglomerates by assets came to 61.2 trillion won ($57.9 billion) in 2012, accounting for 43.2 percent of 141.7 trillion won of all domestic companies’ operating profit, said Chaebul.com Monday.
The combined operating profit of Samsung Group and Hyundai Motor Group stood at 43 trillion won, comprising 30.4 percent of the total.
Following the US-originated financial crisis in 2008, the share of the two business groups surged to 19.7 percent with 23.4 trillion won in 2009, to 25.2 percent with 39.2 trillion won in 2010, to 24.6 percent with 36.3 trillion won in 2011 to more than 30 percent in 2012 for the first time.
The country’s top conglomerate Samsung Group saw the sharpest rise in its portion.
Samsung Group’s 30.2 trillion won operating profit took up 21.3 percent of the total operating profit of all companies in 2012. This is up 7.7 percentage points in three years from 13.6 percent of 2009, when Samsung Group’s operating profit was worth 16.2 trillion won.
The share of the conglomerate’s flagship behemoth Samsung Electronics came to 5.4 percent in 2009, 9.6 percent in 2010 and 7.9 percent in 2011, staying below 10 percent, but surged to 13.1 percent in 2012.
The share of Hyundai Motor Group’s operating profit climbed from 6.1 percent in 2009 to nine percent in 2012, approaching the 10 percent mark, as the company’s operating profit expanded from 7.2 trillion won to 12.8 trillion won over the period.
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