Since 1987, Assets Increased by 11,774%... Explosive Growth of SK Group

Leaders Index Analysis
Total Assets Increased 6439% Since 1987
'The Rich Get Richer, The Poor Get Poorer' After Large Business Group Designation System

Since the introduction of the large conglomerate designation system in 1987, an analysis has shown that the concentration of capital among the top 5 groups has intensified.

Samsung Electronics announced preliminary consolidated results for the third quarter with sales of 67 trillion KRW and an operating profit of 2.4 trillion KRW, exceeding expectations by more than 2 trillion KRW. The photo was taken on the 11th at Samsung Electronics Seocho Building in Seoul. Photo by Jinhyung Kang aymsdream@

Leaders Index, a corporate analysis research institute, announced on the 25th that it analyzed the changes in total assets of the top 5 owner-operated groups?Beom-Samsung, SK, Beom-Hyundai, Beom-LG, and Beom-Lotte?from 1987 to last year, revealing these findings.

The total assets of the top 5 groups increased from 28.762 trillion won to 1,880.818 trillion won, a 6,439.2% increase. During the same period, the Gross Domestic Product (GDP) rose from 121.698 trillion won to 2,236.329 trillion won, a 1,737.6% increase. The asset growth rate of the top 5 groups was 3.7 times higher than the GDP growth rate. The total assets of the top 30 groups increased from 66.526 trillion won to 2,548.988 trillion won, a 3,731.6% increase. The asset growth rate of the top 5 groups was about twice that of the top 30 groups.

The assets of the top 5 groups have continuously increased after explosive growth from 1987 to 1997. In 1987, the asset share of the top 5 groups among the top 30 groups was 43.2%. It exceeded 50% in 1995 and showed an increasing trend except for 2001 and 2002. Last year, it recorded 73.8%. The asset share of the top 5 groups relative to GDP also grew from 23.6% in 1987 to surpass 50% in 2007, reaching 84.4% last year.

Since 1987, the group with the highest asset growth rate was SK Group. SK Group's total assets increased from 2.816 trillion won in 1987 to 334.36 trillion won last year, a 11,773.6% increase. Its ranking in the business world rose from 7th to 2nd. Beom-Samsung Group followed. Its total assets increased from 6.766 trillion won in 1987 to 674.069 trillion won last year (including Samsung, CJ, Shinsegae, and Hansol), a 9,863.0% increase. Last year, Beom-Samsung's total assets exceeded 600 trillion won for the first time. It accounted for 26.4% of the top 30 groups' total assets and 30.1% relative to GDP.