Accumulated earnings of Samsung and Hyundai Motors increased more than double.

Samsung's accumulated earnings increased more than double. (Photo : NEWSis)

Accumulated earnings of ten biggest conglomerates in Korea are doubled in 5 years.

CEO SCORES, the website that evaluates company’s manageability, released the new report evaluating 10 biggest conglomerates and their 81 listed companies. The report stated that the total accumulated earnings of following companies were 515.9 trillion won. This is 90.3% increase from that of 2009 which is 271 trillion won.

And the reserve ratio of accumulated earnings increased from 986.9% to 1733.9% which is 747% increase.

Samsung group’s accumulated earning increased the most. They were increased from 86.9 trillion won to 182.4 trillion won which is 109.8% increase.

Following Samsung, Hyundai Motors’s accumulated earnings took the second rank. they had 52% increase from 72 trillion won to 113.9 trillion won. SK’s accumulated earnings were 24 trillion won and LG’s accumulated earnings were 17 trillion won.

Samsung, Hyundai Motors, SK and LG accounted for 78.3% in total accumulated earnings and Samsung is responsible for 35.4% in this 78.3%.

In the report, Hanjin group was the only company that has the decreasing accumulated earnings. Group’s accumulated earning was 2.2 trillion won which is a 52% decrease from that of previous year.

Among 81 listed companies from 10 conglomerates, 67 companies have increasing accumulated earnings and among them, 26 companies’ accumulated earnings were increased more than 1 trillion won.

The publisher of this report said “Companies with high reserve ratio is considered as being financially stable and potentially profitable to investors. But, high reserve means that the company is being passive when it comes to investment and distribution.”

Meanwhile, there is a recent controversy in political circle because some politicians want to impose a tax on accumulated earnings while several economic interest groups oppose this taxation.

Translated by HAN SOL SONG graduated from Pennsylvania State University – University Park, Advertising/Public Relation