SK Group jumps to No. 2 on FTC list of chaebol ranked by assets

SK Group headquartess in downtown Seoul on Wednesday. SK Group has become the second-largest Korean conglomerate. [YONHAP]

SK Group became Korea's second-largest chaebol by asset size in 2021, with Hyundai Motor Group falling one place to the No. 3 position.

According to the Fair Trade Commission (FTC) on Wednesday, the change in rank among the top five company groups is the first since 2010.

It noted that one of the key reasons for the switch in rank is the significant growth of the semiconductor business during Covid-19. The regulator also noted that the increase in energy prices helped boost SK Group's business.

Samsung Group held its top position, with total assets of 483.9 trillion won ($387 billion), up 5.8 percent from the 2020 list.

SK Group's assets totaled 292 trillion won, up 21.9 percent. Hyundai Motor Group's assets totaled 257.8 trillion won, up 4.3 percent.

SK Group added 38 affiliates, the most of any group, and Kakao 18. These are affiliates newly established or newly affiliated. SK Group now has 186.

Shipping and construction groups also moved up the list.

HMM jumped from 48th in 2020 to 25th as the global economic recovery boosted business. The shipping group's total assets nearly doubled, from 8.8 trillion won to 17.8 trillion won.

Kakao and Naver continued to climb the list on healthy pandemic-related growth.
Kakao this year ranked 15th among the chaebol, three notches up on year. Naver now ranks 22nd, from 27th, while Netmarble bumped up a notch to 35 from 36.

In the case of Kakao, Kakao Bank's and Kakao Pay's public offerings contributed to the increase in assets.

GM Korea's rank dropped the sharpest due to falling sales. The automotive group ranked 65th this year, down from last year's 57. Celltrion's rank dropped sharply from 24th last year to 31st this year as the value of the group's investment assets fell.

This year, 76 groups had consolidated assets over 5 trillion won. That's up five.

The number of affiliated companies under the 76 chaebol totaled 2,886, up 274.
Eight newcomers were added to the list. The companies are: Dunamu, the operator of Upbit; Krafton, which created the global sensation Battlegrounds; estate developer Bosung Group , KG Group, Iljin, OK Financial Group, Shinyoung and Nongshim.

Three companies were crossed off the list: IMM Investment, Korea Investment & Securities and Daewoo E&C.

IMM Investment and Korea Investment & Securities were excluded as this year the FTC stopped including private equity funds, financial and insurance companies, according to the change in regulation last year.

Daewoo E&C was bought by Jungheung Construction.

"Despite the spread of Covid-19, active economic activities including mergers and acquisitions led to an increase in the total assets," said a FTC official. "Managements performed better."

Total assets of the groups grew 12 percent year-on-year to 2,617.7 trillion won. Combined revenue totaled 1,644.7 trillion won, up 21.5 percent.

Net profit surged 189 percent to 125.8 trillion won last year.

Samsung's revenues rose 13.6 percent year-on-year, SK's 21.3 percent and Hyundai Motor Group's 15.8 percent

Doosan Group's consolidated revenue fell 43 percent less, Daewoo Shipbuilding and Marine Engineering's fell 34 percent and GM Korea's declined 15 percent.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]