HYBE falls short of annual chaebol list for lack of assets

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HYBE falls short of annual chaebol list for lack of assets

Published: 26 Apr. 2023, 18:48 Updated: 26 Apr. 2023, 19:13

HYBE's total assets do not exceed 5 trillion won ($3.7 billion), according to a report by the Fair Trade Commission (FTC) on Tuesday.

The K-pop powerhouse behind BTS, Seventeen and NewJeans reported total assets of 4.8 trillion won.

Eighty-two companies, including EcoPro, are now required to disclose certain types of information as their total assets exceed 5 trillion won, six more than last year. The companies need to report their executive and director names, the number and types of shares they hold and market trading information on the Financial Supervisory Service's DART disclosure system.

Eight new companies to make the list are LX, EcoPro, Koryo HC, Global Sae-a, DN, Hansol, Sampyo and BGF, while two companies were taken out of the list. More companies made the list due to growth of new industries, such as rechargeable batteries and electric vehicles.

Kumho Asiana and Daewoo Shipbuilding & Marine Engineering (DSME), which were included in the list, will be excluded once their mergers are completed. Korean Air Lines is in the process of acquiring Asiana Airlines and has applied for merger review with 14 regulators since January 2021. Hanwha is acquiring DSME.

Lotte’s rank for total company assets fell one spot to No. 6. Posco took Lotte’s No. 5 position.

Samsung ranked No. 1, with total assets of 486.4 trillion won, followed by SK with 327.3 trillion won; Hyundai Motor with 270.8 trillion won and LG with 171.2 trillion won.

Coupang CEO Bom Kim was not designated as a chaebol head because of his American nationality.

In Korea, there are no written rules or standards on the matter.

OCI’s Vice Chairman Lee Woo-hyun was chosen as chaebol head with American nationality, raising questions about the designation process set forth by the FTC.

“In the case of OCI, the head’s family is actively involved in company management, but for Coupang, it’s different because Bom Kim’s family is not part of management domestically,” FTC Chairman Han Ki-jeong said. “OCI did not request a change in the status of conglomerate head.”

Seven spouses of chaebol heads have foreign nationality, while 31 chaebol head offspring have foreign nationality. The FTC has said since 2021 it will “come up with criteria” but has yet to establish the rules.

The FTC is also attempting to change the standards for companies subject to public disclosure. In 2009, 48 companies reported total assets of more than 5 trillion won, but the figure rose to 82 this year.

BY JEONG JIN-HO [lee.jaelim@joongang.co.kr]