"No Korean Companies Have Entered the World's Top 100 Companies in 10 Years"

[Asia Economy Reporter Ki-min Lee] It has been revealed that no domestic companies have newly entered the 'Global Top 100 Companies' over the past decade.

In a report titled 'Current Status and Policy Implications of Corporate Metabolism in Korea Based on International Comparisons' released on the 13th, the Korea Chamber of Commerce and Industry (KCCI) diagnosed that while Korea is crowded with livelihood-type startups with low entry barriers, the proportion of self-made companies symbolizing the circulation of wealth is low.

The KCCI explained in the report that after tracing the fundamental cause of the decline in the contribution of the private sector to the gross domestic product (GDP) growth from 3.6% in 2011 to 0.4% last year over the past 10 years, sluggish corporate metabolism was identified as a key factor.

Looking at the distribution of the 'Global Top 100 Companies (based on Forbes Global 2000)' by country, which is at the highest level of corporate metabolism, Korea this year has only one company, Samsung Electronics, compared to major countries such as the United States (37 companies), China (18 companies), and Japan (8 companies).

Moreover, over the past 10 years since 2010, while 9 new companies from the United States, 11 from China, and 5 from Japan have newly entered, no Korean companies have entered the list.

In the past decade, while 7 out of the top 10 companies in the United States have changed, Korea has had only 3 companies?Kia Motors, Hyundai Mobis, and KB Financial Group?enter the top 10. In the U.S., energy and manufacturing industries have been replaced by new industries such as IT and healthcare, but no new industry sectors have emerged in Korea.

The KCCI emphasized, "With the acceleration of the Fourth Industrial Revolution wave amid the COVID-19 pandemic, the gap with innovation-leading countries is likely to widen further," adding, "We must keep in mind that the golden time for structural transformation into new industries is running out."

According to an analysis by the KCCI of Forbes' 'World's Billionaires' list released this year, the proportion of self-made entrepreneurs among billionaires with assets over $1 billion is significantly lower in Korea, with 16 out of 28 (57.1%) compared to other major countries.

The KCCI analyzed, "In Korea, legal systems that protect vested interests and completely block risks in new industries are restricting corporate growth," and stated, "This is evidence of an invisible glass ceiling in the circulation of wealth through entrepreneurship."

According to the report, the proportion of technology-based 'opportunity-driven startups' among all startups was only 14.4% in the first half of this year. The remaining 85.6% were livelihood-type startups and others excluding opportunity-driven startups.

Kim Moon-tae, head of the Economic Policy Team at the KCCI, said, "Current laws and systems only allow what is already defined, fundamentally restricting opportunities for new industries and startups that need to create what does not exist, so comprehensive innovation of outdated laws and systems is urgently needed."

This content was produced with the assistance of AI translation services.