CEO Score Surveys 331 Companies
156 Add New Businesses... Future-Type Cars Popular
Daehan Jebun Adds 43 New Business Objectives
More than half of our major conglomerates have not added a single new business in the past five years.
According to CEO Score by the Corporate Data Research Institute on the 31st, an investigation into the status of additional business purposes among 331 of the top 500 domestic companies that submitted business reports over the past five years since 2018 revealed that 175 companies (52.9%), more than half of the surveyed group, did not add any new business purposes.
The remaining 156 companies added a total of 684 new businesses. However, only 487 of these (71.2%) were actively operated, while the remaining 197 (28.8%) were found to be inactive. There were also 15 companies, including IS Dongseo (14), Daou Technology (9), and Hanwha Ocean (5), that added business purposes but were 100% inactive.
The most favored new business among the top 500 companies in the past five years was future-oriented automobiles (22 companies). This was followed by energy (17 companies), artificial intelligence (AI) big data (17 companies), eco-friendly businesses (13 companies), and smart processes (9 companies). Future-oriented automobile businesses are operated by 22 companies including Hyundai Glovis, NVH Korea, iMarket Korea, Lotte Chemical, and CJ Logistics. Among them, Hyundai Glovis added four business purposes related to future automobile infrastructure, such as electric vehicle charging, hydrogen vehicle charging, and hydrogen storage businesses.
Energy-related new businesses were added by 17 companies including HD Hyundai Oilbank, Gyeryong Construction Industry, Hanjin, Korea Gas Corporation, and S-OIL. The most notable new business in the energy sector was solar power generation. Seven companies including Hanjin, BGF Retail, HL Mando, Gyeryong Construction Industry, Lotte Chilsung Beverage, Harim, and Hotel Lotte are installing solar power facilities on idle spaces such as parking lots and factory rooftops. Korea Gas Corporation, S-OIL, HD Hyundai Oilbank, Hanwha TotalEnergies, and Daesung Industrial are engaged in hydrogen energy production and infrastructure construction business purposes.
Among the 17 companies that added AI big data business purposes, seven credit finance companies were identified, including Shinhan Card, Hana Card, and Samsung Card. Additionally, SK Telecom operates an animal hospital X-ray imaging and diagnostic business utilizing AI and digital transformation (DT) capabilities, while Cosmax runs a hyper-personalized beauty platform using an AI recommendation system.
SK Ecoplant was the most active in adding eco-friendly business purposes. SK Ecoplant currently operates a total of 11 eco-friendly business purposes, including wastewater treatment management, wastewater treatment construction, carbon capture, and energy management systems. Hyosung TNC, SK Geocentric, Hyundai Engineering, and Harim are also representative companies engaged in eco-friendly new businesses.
The company with the most new business purposes added in the past five years was Daehan Flour Mills, which added 43. However, only 14 of these (32.6%) are actively operated, which is just half of the inactive businesses (29, 67.4%). Daehan Flour Mills recently added 15 subsidiary businesses related to brand marketing due to the popularity of the 'GomPyo' brand. They operate not only food products such as beer and popcorn but also clothing and household goods businesses.
SK Ecoplant ranked second by adding 19 new business purposes, all of which are actively operated. Hanshin Engineering & Construction (19), IS Dongseo (14), Shinsegae Food (13), Hyundai Glovis (12), HD Hyundai Oilbank (11), Gyeryong Construction Industry (11), Korea Circuit (11), and SK Rent-a-Car (11) also made the 'Top 10' list for adding new business purposes.
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