South Korea’s two biggest conglomerates have expanded their presence, with their earnings accounting for over 80 percent of the profits of the top 30 business groups last year, data showed Sunday, in the latest sign of their concentration of wealth.
Samsung Group and Hyundai Motor Group posted a combined net profit of 34 trillion won ($31.4 billion) last year, down 4 trillion won from the 38 trillion won in 2010, and the earnings from the remaining 28 conglomerates dipped to 8 trillion won from 42 trillion won over the cited period, according to the data compiled by CEOScore, a research firm that tracks conglomerates.
Consequently, Samsung and Hyundai’s net profits accounted for 81 percent of the total earnings logged by the top 30 players last year, a sharp jump from the 47.5 percent portion in 2010.
Samsung Group logged a net profit of 20.99 trillion won last year, down from the 24.49 trillion won posted in 2010, and Hyundai Motor saw its net profit slip 6.4 percent to 12.68 trillion won over the cited period.
Samsung Group is South Korea’s largest family-controlled conglomerate, known as chaebol, and its affiliates include Samsung Electronics Co., the world’s top handset maker.
Hyundai Motor Group has Hyundai Motor Co., South Korea’s largest carmaker, and its smaller sister company, Kia Motors Corp. under its wing.
The latest development comes as President Park Geun-hye vowed to rein in the economic dominance of chaebol and shift the economy from one that relies heavily on the exports of large conglomerates to one in which both big and small firms coexist.
During the period, the combined sales of the top two players surged 21.8 percent to 468.53 trillion won, while the remaining 28 conglomerates saw their sales increase 17.7 percent to 882.36 trillion won. (Yonhap)
