Only Hyundai Motor Zooms in the US... Samsung Electronics, SK Hynix, and LG Electronics Struggle

by Moon Chaeseok

Published 27 Apr.2023 14:57(KST)

Updated 27 Apr.2023 15:33(KST)

CXO Research Institute Analysis... Hyundai Motor's Net Profit Increases While IT Companies' Decline

Hyundai Motor Company recorded significantly better performance in the United States last year compared to other major Korean companies such as Samsung Electronics, SK Hynix, and LG Electronics.

Hyundai Motor Chairman Chung Eui-sun is seen conversing with Brad Smith, Vice President of Microsoft, at the Korea-US Business Roundtable hosted by President Yoon Suk-yeol on the 25th (local time) at the U.S. Chamber of Commerce in Washington, DC. [Image source=Yonhap News Agency]
? Yonhap News Agency, unauthorized reproduction and redistribution prohibited

On the 27th, Korea CXO Research Institute, a corporate analysis specialist, announced the results of a survey on the performance of the US subsidiaries of the four major Korean companies last year.

The survey covered four US local subsidiaries in which the four major companies hold more than 50% equity: Samsung Electronics America, SK Hynix America, Hyundai Motor America, and LG Electronics USA.

Only Hyundai Motor Zooms in the US... Samsung Electronics, SK Hynix, and LG Electronics Struggle

The combined sales of the four subsidiaries last year amounted to 115.7266 trillion KRW, a 19.7% increase from the previous year (96.6482 trillion KRW).

Hyundai Motor America's sales last year were 33.684 trillion KRW, a sharp increase of 47.2% from the previous year (22.8831 trillion KRW). The sales growth of Hyundai Motor was about twice as large as that of SK Hynix (13.8%), Samsung Electronics (10.4%), and LG Electronics (10.4%).

The gap in net income growth rate is even larger. Hyundai Motor America's net income surged 147.9%, from 1.0284 trillion KRW in 2021 to 2.5494 trillion KRW last year.

In contrast, Samsung Electronics' net income decreased by 73.3%, from 823.9 billion KRW to 219.6 billion KRW. LG Electronics (252.3 billion KRW → 191.6 billion KRW, down 24.1%) and SK Hynix (67.2 billion KRW → 58.1 billion KRW, down 13.5%) also saw declines in net income.

Oh Il-seon, director of CXO Research Institute, said, "Among Korean companies entering the US market, electric vehicle manufacturer Hyundai Motor has recently shown significant improvement in business performance, while IT companies, mainly generating profits from the semiconductor business, continue to struggle."