Samsung emerges as Korea`s largest conglomerate; Hyundai slips to second

With the spinning off of Hyundai Group affiliates, Samsung Group emerged as the nation`s largest conglomerate in the latest ranking of Korea`s business giants. Hyundai Motor, Pohang Iron and Steel Corporation (POSCO) and four other companies newly joined the list of the top 30 corporate entities. Anam, Saehan, Jinro, Daewoo, S-Oil, Dong-A were dropped from the list. The Fair Trade Commission (FTC) announced the list on Apr. 1.

Hyundai Group had held the top spot since 1987, when the government first ranked corporations with over 400 billion won in assets. As Hyundai Motor was separated from the group, Hyundai become the second largest chaebol. Hyundai Motor and Hyundai Department Store were newly ranked as the 5th and 26th largest companies.

In terms of assets, sales and profits, Samsung Group, which has long been in second place, emerged as the nation`s No. 1 conglomerate.

POSCO, which was just privatized, ranked 7th. Hanaro Telecom, Oriental Chemical Industries and Taekwang Industrial placed 23rd, 27th and 29th, respectively, joining the top 30 for the first time. LG and SK retained their positions as the third and fourth largest conglomerates, respectively. Hanjin was 6th and Lotte was 8th.

The FTC said that debt-to-equity ratios among the top 30 have fallen and net profits have increased, although total assets and number of affiliates has also grown. The number of affiliates controlled by the top 30 companies increased to 624, an increase of 80 firms, in line with business expansion in the information technology (IT) field.

Choi Young-Hae moneychoi@donga.com