16 Most Valuable Korean Companies In The World
In this article, we will discuss the 16 Most Valuable Korean Companies In The World. You can skip our industry overview and go directly to the 5 Most Valuable Korean Companies In The World.
The economy of South Korea is the 13th largest economy in the world, with a nominal GDP of $1.73 trillion in 2022. The GDP per capita in Korea stood slightly above $33000 in 2022. Over the past few decades, South Korea has undergone a remarkable transformation from an agricultural-based economy to a new, technologically advanced, industrialized economy, which has been facilitated by government policies aimed at promoting economic growth.
Industries such as automobiles, electronics, chemicals, steel, shipbuilding, and textile hold great significance in Korea. Statistics from World Bank reveal that these industries contributed to 32.4% of GDP in 2021. The lax policies of the government and ease of doing business have ensured that large conglomerates continue to operate out of South Korea. The policy measures taken by the government to spur economic growth in the country include investment in research and development, support for small and medium-sized enterprises, and tax incentives for businesses. The government has also made significant investments in infrastructure, including roads, ports, and airports, to support the country's export-oriented economy. It is no surprise that South Korea ranks 19th on the list of the 2022 Index of Economic Freedom with a freedom score of 74.6.
One of the key drivers of the South Korean economy is the export sector. The country is a major exporter of electronics, automobiles, steel, and other manufactured goods. As of May 2022, Samsung Group remained the largest business group operating in South Korea, with a revenue of approximately 379 trillion South Korean won. However, the Korean economy is also feeling the effects of the global economic slowdown, and its exports declined by 16.6% YoY in January 2023. A major cause of this includes a deterioration in foreign demand, cost pressures, rising borrowing costs, and overall global monetary tightening. The chips industry saw the highest decline of 44.5%, followed by a slump of 25.9% in the steel industry.
In addition to exports, South Korea has a thriving services sector, which includes finance, healthcare, and tourism. The country has a well-developed financial sector with a large number of banks and insurance companies. The tourism industry is also growing, with the number of visitors to South Korea increasing every year.
The Korean government continues to be supportive of small businesses and set a budget of KRW 13520.5 billion for SMEs and startups in 2023. The continued government support is the reason why startups like Bemyfriends, ONDA, and Energy X have emerged and created their mark in the market by bringing sustainable market solutions.
To sum it up, South Korea has a thriving and dynamic economy that has undergone significant transformation over the past few decades. The country's focus on exports, innovation, and government support has helped it to become one of the largest and most advanced economies in the world. While the country still faces challenges, such as an aging population and high levels of household debt, its strong economic growth and potential for further expansion make it an attractive investment destination for businesses and individuals alike.
Our Methodology
To come up with the 16 most valuable Korean companies in the world, we sorted data of the biggest Korean companies from the Fortune 500 Global 2022 rankings. After this, we ranked the companies in ascending order of their market capitalization. Our list contains only one private company for which we have used a revenue multiple of 0.5x to estimate the company’s market value.
16 most valuable Korean companies in the world
16. CJ Corporation (001040.KS)
Market Cap as of February 11, 2023: $1.78 billion
CJ Corporation (001040.KS) is a South Korean conglomerate that manages investments and offers a range of products and services. The company operates in retail, restaurants, TV shopping, online shopping, and other mediums to offer food ingredients, clothing, and home goods under brands such as Olive Young, Mnet, BYO, Bibigo, and Seasons Table. CJ Corporation (001040.KS) also invests in, produces, and commercializes pharmaceuticals and healthcare products and develops real estate, including housing, commercial buildings, resorts, and leisure facilities.
15. Hanwha Corporation (000880.KS)
Market Cap as of February 11, 2023: $1.94 billion
Hanwha Corporation (000880.KS) is a South Korean company that specializes in the production and supply of explosives, machinery, and defense products. Its machinery offerings include aerospace equipment, solar products, machine tools, power trains, factory automation, and more. Additionally, the company provides demolition, cladding, drilling, blasting, and firework services. Hanwha Corporation (000880.KS)’s products are utilized in various industries, including undersea equipment, rockets, fuses, grenades, fireworks, aerospace, petroleum, and livestock. Hanwha's products are sold through a network of distributors in South Korea, Asia, North America, South America, Europe, and the Middle East.
14. SK Inc. (034730.KS)
Market Cap as of February 11, 2023: $8.70 billion
SK Inc. (034730.KS) is a holding company with a presence across various industries, including energy and chemicals, information technology (IT) and telecommunications, life sciences, semiconductors, marketing, and others. The company offers a diverse range of products, such as gasoline, diesel, liquefied petroleum gas, pharmaceutical intermediaries, polyester films, and IT devices. Additionally, SK Inc. (034730.KS) provides wireless and fixed-line services and conducts R&D for new pharmaceutical and IT products. The company operates in regions including North America, South America, Asia, Europe, and the Middle East.
13. Samsung Life Insurance Co., Ltd. (032830.KS)
Market Cap as of February 11, 2023: $9.59 billion
Samsung Life Insurance Co., Ltd. (032830.KS) is the leading insurance company based in South Korea. The company provides a range of insurance products in life, health, and accident insurance categories and asset management services. Additionally, Samsung Life Insurance Co., Ltd. (032830.KS) offers retirement solutions such as annuities and pensions, as well as financial products like mortgage loans.
12. Korea Electric Power Corporation (NYSE:KEP)
Market Cap as of February 11, 2023: $9.76 billion
Korea Electric Power Corporation (NYSE:KEP) was established under the Korea Electric Power Corporation Act with the aim of supporting the development of electric power sources, meeting the nation's electric power needs, and driving economic growth. The company has a workforce comprising of more than 48000 employees. The company is involved in the production, transmission, and distribution of electricity. The business activities include the sale of electric power, development of power resources, investment, and real estate.
11. Samsung C&T Corporation (028260.KS)
Market Cap as of February 11, 2023: $14.75 billion
Samsung C&T Corporation (028260.KS) provides a diverse range of business support services and manages resort operations. Its services encompass areas such as clothing retail, construction, energy, real estate, food service, and resort accommodations. In addition to these services, Samsung C&T Corporation (028260.KS) operates a resort that includes amusement rides, a zoo, a water park, golf clubs, and restaurants, and also engages in building, civil infrastructure, urban development, plant, and housing construction. The company has an employee base of more than 15,000 individuals.
10. LG Electronics Inc. (066570.KS)
Market Cap as of February 11, 2023: $14.86 billion
LG Electronics Inc. (066570.KS) and its subsidiaries design, manufacture, and market consumer electronics, mobile communications, and home appliances globally. LG Electronics Inc. (066570.KS) operates through its five segments: Home Appliance & Air Solution, Home Entertainment, Mobile Communications, Vehicle Components Solutions, and Business Solutions. The company’s product and service portfolio include refrigerators, washing machines, vacuum cleaners, air conditioners, air purifiers, mobile communication products, a broad range of energy solutions, commercial laundry products, and a cloud service called LG Smart Solution, Digital. LG Electronics Inc. (066570.KS) has a large workforce with over 84,000 employees.
9. Hyundai Mobis Co.,Ltd (012330.KS)
Market Cap as of February 11, 2023: $14.95 billion
With its headquarters in Seoul, Hyundai Mobis Co.,Ltd (012330.KS) is a South Korean manufacturer of automobile parts and components. It is a subsidiary of the Hyundai Motor Group, one of the largest automobile manufacturers in the world. The company's product portfolio includes automotive parts such as steering systems, suspension systems, braking systems, airbag systems, lighting systems, electronic systems, and energy storage systems.
8. GS Caltex Corporation
Estimated Market Value: $15.09 billion
Revenue Multiple Used: 0.5x Annual Revenue 2021: $30.18 billion
GS Caltex Corporation is a South Korean oil refining company jointly owned by Chevron and GS Group. It was established in May 1967 as South Korea's first privately owned oil company. In 1969, the company began producing lubricating oil at its Incheon plant and, over the past 50 years, has supplied lubricants to customers both in Korea and globally. Currently, the Incheon plant has a yearly output of 9,000 barrels of lubricating oil products and 8,000 tons of grease products. GS Caltex Corporation utilizes base oil to manufacture approximately 180 different types of lubricants under the Kixx brand.
7. KB Financial Group Inc. (NYSE:KB)
Market Cap as of February 11, 2023: $17.30 billion
KB Financial Group Inc. (NYSE:KB) provides a range of financial products and services, including banking and insurance, through its subsidiary companies. The company offers personal and business loans, deposits, debit and credit cards, and life and non-life insurance. Additionally, KB Financial Group Inc. (NYSE:KB) provides trading, asset management, brokerage, treasury services, IT outsourcing, capital market, and international banking services. The company has a global client base of small and medium-sized businesses and large corporations.
6. POSCO Holdings Inc. (NYSE:PKX)
Market Cap as of February 11, 2023: $18.20 billion
POSCO Holdings Inc. (NYSE:PKX) is a leading steel manufacturer that produces and markets rolled steel products and plates. The company offers a wide selection of hot and cold rolled products, wire rods, plates, silicon steel sheets, and stainless-steel products for industries such as automotive, shipbuilding, home appliances, engineering, and machinery. Furthermore, POSCO Holdings Inc. (NYSE:PKX) is also engaged in services such as planning, designing, and constructing industrial plants, civil engineering projects, and commercial and residential buildings. The company is also involved in the business of power generation, trading of steel and raw materials, and network and system integration.
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Disclosure: None. 16 Most Valuable Korean Companies In The World is originally published on Insider Monkey.