Latest news with #CEOScore
Arabian Post
4 days ago
- Automotive
- Arabian Post
Powerhouse Chaebols Propel South Korea's Economy to New Heights
A coalition of South Korea's top 100 firms generated an economic contribution of 1,615.2 trillion won in 2024, marking a 3.9 percent rise from the previous year, according to CEO Score data released on 18 June. Samsung Electronics led the charge with a 7 percent increase to 157.5 trillion won, accounting for 9.8 percent of the total haul. This growth reflects an integrated model of wealth distribution across stakeholders—suppliers, workers, government, shareholders and communities. Total sales of these firms reached 2,122.4 trillion won, growing 6.6 percent year-on-year, underlining the deep economic interlinkages driving expansion. Hyundai Motor secured the second position with a contribution of 115.2 trillion won, followed by Kia at 86.6 trillion won, which spectacularly posted the steepest increase thanks to surging supplier payments. Among the top ten contributors were LG Electronics, Hyundai Mobis, GS Caltex, SK Energy, Posco, Samsung C&T and LG Chem. In contrast, LG Energy Solution saw a pronounced drop of 28.3 percent to 19.2 trillion won, weighed down by lower stakeholder payouts. ADVERTISEMENT Industry breakdown highlights that electronics and IT firms contributed about 370 trillion won, followed by petrochemicals at 312 trillion won and the auto sector at 303.5 trillion won. Construction, shipbuilding, steel and distribution made further sizeable additions, reflecting a diverse industrial base. The dominance of chaebol giants—especially Samsung—continues unabated. Samsung and its affiliates, constituting nearly a quarter of national GDP, help drive national innovation and exports. Beyond scale, these conglomerates are embracing strategic shifts. Government figures show a record R&D investment of 83.6 trillion won by South Korean firms, with Samsung alone ploughing 30.2 trillion won into innovation, followed by SK hynix at 4.5 trillion won, Hyundai at 4.3 trillion won, and LG Electronics at 3.4 trillion won. Despite stepping up R&D budgets by 15.3 percent, only 40 domestic firms made the global top 2,000 by R&D outlays, compared to 681 in the US and 524 in China—underscoring scope for further thrust in innovation. Within semiconductors, South Korea continues to hold a dominant global footprint, commanding approximately 60 percent of the DRAM market and 52.6 percent of NAND, led by Samsung and SK hynix. Notably, SK hynix claimed 36 percent of DRAM market share in Q1 2025, overtaking Samsung's 34 percent. This data reveals a dual narrative: chaebol behemoths remain the backbone of the economy, but a growing reliance on innovation and global competitiveness is reshaping the corporate landscape. Hyundai's pivot to electric vehicles, Kia's ramped-up supplier integration and LG's diversification into chemicals and energy solutions are emblematic of this shift. However, concentration risk persists. Samsung and its affiliates form a significant share of GDP and exports, but reliance on a limited set of heavyweights may expose the economy to global headwinds. The comparative lag in R&D-intensive mid-sized firms risks stifling long-term resilience. Nevertheless, public policy is responding. Regulatory tweaks aimed at supporting corporate research and streamlining licensing protocols, alongside financial incentives and infrastructure development, suggest a proactive stance to broaden innovation beyond the chaebol core. As South Korea navigates economic turbulence—from fluctuating global demand to supply chain uncertainties and U.S.–China tech tensions—the measured expansion of stakeholder-driven value and intensification of R&D efforts signal a strategic repositioning.
Korea Herald
4 days ago
- Business
- Korea Herald
Top 100 firms contribute over W1,600tr to economy in 2024
South Korea's top 100 companies contributed more than 1,600 trillion won ($1.16 trillion) to the national economy in 2024, with Samsung Electronics Co. topping the list for the second consecutive year, a market tracker said Wednesday. Their combined economic contribution reached 1,615.2 trillion won, up 3.9 percent from 1,554.9 trillion won the previous year, according to CEO Score. Samsung Electronics' contribution rose 7 percent on-year to 157.5 trillion won. The 100 companies are among the nation's 500 largest firms by revenue, excluding public enterprises and financial institutions, such as banks, insurers and securities firms. CEO Score defines economic contribution as the total value generated for stakeholders through business operations, including payments to business partners, employees, the government (in the form of taxes), shareholders (dividends), creditors (interest) and society (donations). Total sales by the 100 firms rose 6.6 percent on-year to 2,122.4 trillion won, contributing to the overall increase in their economic contribution to Asia's fourth-largest economy. Hyundai Motor Co. ranked second with a contribution of 115.2 trillion won, up 3.4 percent from a year earlier. Its affiliate Kia Corp. followed with 86.6 trillion won, a 17.2 percent on-year increase. Rounding out the top 10 contributors were LG Electronics Inc., Hyundai Mobis Co., GS Caltex Corp., SK Energy Co., POSCO, Samsung C&T Corp. and LG Chem Ltd. Kia posted the largest on-year increase in economic contribution, mainly due to higher payments to suppliers. In contrast, LG Energy Solution Ltd. recorded the steepest drop, falling 28.3 percent on-year to 19.2 trillion won. (Yonhap)
Korea Herald
14-05-2025
- Business
- Korea Herald
SK hynix named top firm in business evaluation rankings
South Korean chip giant SK hynix Inc. has been ranked the top company in terms of investment and business performance among the country's 268 major companies, a market tracker said Wednesday. SK hynix, the world's second-largest memory chipmaker, received 622.9 points out of the full 800 in a business evaluation that assessed eight categories, including global competitiveness, job creation and social contributions, according to CEO Score. Last year, Hyundai Motor Co. topped the list, while SK hynix failed to break into the top 10 due to a downturn in the semiconductor industry. This year, SK hynix earned high marks for rapid growth, investment and global competitiveness. Its bigger rival, Samsung Electronics Co., came in second with 596 points, followed by Samsung Biologics Co. with 590 points, Kia Corp. 572.7 points and Hyundai Motor 559.5 points. In the January-March period, SK hynix's sales jumped 42 percent on-year to 17.64 trillion won ($12.4 billion), while Samsung Electronics' rose 10 percent to 79.14 trillion won. Other companies in the top 10 included online portal operator Naver Corp., tobacco firm KT&G Corp., biopharmaceutical company Celltrion Inc., Samsung C&T Corp. and Hankook Tire & Technology Co. (Yonhap)
Korea Herald
16-04-2025
- Business
- Korea Herald
Average length of employment at 80 major firms rises
The average length of service of employees at 80 major South Korean companies has increased in the past five years despite frequent job changes among young workers and retirement programs for senior workers, a corporate data tracker said Wednesday. In its survey of 80 companies that released data on their employees' average years of service for the 2020-2024 period, CEO Score found the workers' average length of service rose to 14.03 years in 2024 from 13.55 years in 2020. The 80 firms belong to the country's top 100 companies in terms of sales. The average period of employment for female workers jumped to 12.94 years from 11.38 years over the cited period, while that of male employees climbed to 14.41 years from 14.29 years, the data firm said. SK Networks, an information technology solutions unit under SK Group, reported the sharpest growth in the employment period, with it increasing to 13.92 years in 2024 from 9.05 years in 2020. In contrast, leading automaker Hyundai Motor Co. saw its workers' years of service fall by the most, dropping to 15.8 years from 18.8 years. In 2024, Kia Corp. topped others with an average 21.8 years of service, followed by KT Corp. at 20.5 years, SK Incheon Petrochem 20 years and Citibank Korea 18.84. Doosan Bobcat, a construction equipment maker, posted 3.2 years, the shortest length of service, in 2024. (Yonhap)
Korea Herald
26-03-2025
- Business
- Korea Herald
Combined operating profit of top 500 firms jumps 66% in 2024, mainly on chip boom
The combined operating profit of South Korea's top 500 companies surged 66 percent from a year earlier in 2024, driven largely by a rebound in the global semiconductor market, a report showed Wednesday. According to the report from corporate tracker CEO Score, the total operating profit of the top 500 firms reached 183.7 trillion won ($125.3 billion) in 2024, up from 110.6 trillion won the previous year. The companies' combined annual sales rose 5.8 percent to 2,523 trillion won from 2,384 trillion won in 2023. Net profit jumped 74.5 percent over the same period. The sharp rise in operating profit was led mainly by the strong performance from chipmakers SK hynix Inc. and Samsung Electronics Co. amid robust demand for artificial intelligence memory products. SK hynix recorded the largest growth, swinging to an operating profit of 23.5 trillion won from a 7.7 trillion-won loss in 2023, marking a gain of over 31.2 trillion won. The company benefited from soaring demand for high bandwidth memory, a key component for AI semiconductors. Samsung Electronics posted the second-largest increase, with its operating profit rising by 26.2 trillion won on the back of improved business conditions in the sector, according to CEO Score. Other major contributors to the combined operating profit growth included Korea Electric Power Corp., whose profit increased by 12.9 trillion won, followed by HMM Co. with a 2.9 trillion-won rise, LG Display Co. with 1.9 trillion won and Korea Gas Corp. with 1.5 trillion won. (Yonhap)
