Samsung Pushes KEPCO to Top Asset Ranking

The Samsung Group ranked first in asset ranking including public companies.

Hyundai Motors Group came in second in Korean business circle (excluding public and privatised public firms), surpassing the LG Group.

The number of firms subjected to limited investment amounts, where they cannot invest more than 25 percent of their net assets in other firms, decreased to 11 from last year’s 18.

The Fair Trade Commission (FTC) announced yesterday the 11 investment-amount limited firms and 55 reciprocal-investment limited firms, which cannot invest mutually or guarantee liabilities among interrelated companies.

Private Group Rankings of Samsung-Hyundai Motors-LG-

Samsung’s assets increased from last year’s 91.9 trillion won to 107.6 trillion won. It is the only company out of all the private and public enterprises that has an affiliated firm’s assets of more than 100 trillion won.

Following this, Samsung, in asset rankings including public firms, ranked first, overcoming the Korea Electric Power Corporation (KEPCO). KEPCO was a three-time winner since 2002 when the FTC announced the rankings including public and privatised public firms.

Hyundai Motors (assets of 56 trillion won) ranked third in the business circle last year with the aid of favourable management results pushing SK aside. This year, they pushed segregated LG (50.8 trillion won) to third place and came in second.

Groups Subjected to Limited Investment Amounts Decreased from 18 to 11-

Firms that were appointed to be investment-amount limited firms this year because their assets are more than six trillion won are 11 in total: Hyundai Motors, LG, SK, KT, GS, Hanwha, Kumho Asiana, Doosan, KORAIL, Dongbu, and Hyundai.

GS and KORAIL are new to the list, and nine groups, including Hanjin and Shinsegae, were taken off the list as they satisfied at least one out of four graduating requisites. The number of groups that are receiving an investment amount limitation decreased from 330 to 194. LG and GS’s affiliates that are not incorporated into the holding company (two LG and 37 GS) only receive investment amount limitations.

Groups with more than two trillion won in assets, which are subjected to reciprocal investment limits, increased from 51 to 55.

Chi-Young Shin higgledy@donga.com