Top 100 Companies' Economic Contribution Reaches 1,238 Trillion Won... Increased by 20% Over 10 Years

Over Half of GDP
Samsung Electronics Tops with 160 Trillion Last Year

[Asia Economy Reporter Choi Dae-yeol] A recent survey revealed that the economic contribution of major domestic companies last year reached 1,238 trillion won, marking an increase of about 20% compared to over a decade ago. Economic contribution refers to the amount of economic value created by a company’s business activities that is shared with stakeholders including partners, employees, the government, shareholders, creditors, and society.

According to data compiled by the CEO Score, a corporate data research institute, on the 20th, the economic contribution of the top 100 companies last year was 1,238.3066 trillion won, an increase of 206.482 trillion won compared to 2012. This survey covered the top 100 companies by revenue among the top 500 companies excluding public enterprises and financial firms, where economic contribution data was available.

By category, the largest contribution was generated through partners, amounting to 1,008.2985 trillion won. This can be understood as the cost companies pay to partners for raw materials or services. Employee-related contributions, which increase worker income such as salaries, welfare expenses, and retirement benefits, totaled 147.1695 trillion won. Contributions to the government, including corporate taxes, were about 45.8312 trillion won.

Additionally, contributions to shareholders amounted to 25.9401 trillion won, creditors 9.8306 trillion won, and society 1.2366 trillion won. Over the past decade, contributions to shareholders and the government have increased relatively more. Shareholder contributions, through interim and annual dividends, rose by about 242% during this period. Government contributions increased by 107%. Employee salaries grew by 78%, and partner contributions by about 11%. On the other hand, contributions to society, such as donations, decreased by 2% compared to over ten years ago. Contributions to creditors, which include interest payments to financial institutions, declined by about 9%.

By company, Samsung Electronics, Hyundai Motor, POSCO Holdings, Kia, and LG Electronics ranked highest in contributions. The combined contribution of these top five companies was 414.8622 trillion won, accounting for more than one-third of the total. Samsung Electronics’ economic contribution last year was 160.2288 trillion won, an increase of about 34% compared to 2012. Hyundai Motor’s contribution grew by 41% during the same period, reaching 81.5652 trillion won.

By industry, the IT and electrical electronics sector contributed 285.7237 trillion won, increasing by about 37% during this period. This is attributed to the boom in semiconductor and internet-related industries. The automobile and parts sector increased by about 45% compared to over ten years ago, while the petrochemical industry, one of the core industries, decreased by about 13% during the same period. In terms of growth rate, domestic sectors such as services (142%) and food and beverages (111%) showed significant growth. Other sectors where contributions remained unchanged or declined compared to over ten years ago included trading companies, energy, and shipbuilding, machinery, and equipment sectors.

The economic contribution of the top 100 companies last year was estimated to exceed half of the country’s nominal GDP (2,071 trillion won) for the same year. This indicates the significant economic contribution of large corporations.

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