By Yoon Ja-young
Staff Reporter
A total of 15 local companies achieved over 10 trillion won in total sales and more than 1 trillion won in operating income last year thanks to improvement of overall corporate performances, data showed.
According to the Financial Supervisory Service and FnGuide, a financial information provider, Samsung Electronics, POSCO, Kookmin Bank, KT and 11 others that close accounts in December joined the group of super good businesses last year.
Korea Electric Power Corporation and SK, members of the excellent business performance group in 2006, failed to join the group in 2007. However, the group came to have nine new members: Shinhan Financial Group, Woori Financial Group, Hyundai Heavy Industries, Industrial Bank of Korea, LG.Philips LCD, Hana Financial Group, SK Energy, LG Electronics and S-Oil.
The total sales of the 15 businesses last year stood at 350.9 trillion won, up 15.5 percent from the previous year. Their operating profit grew 21.2 percent to 36.9 trillion won. The 36.9 trillion won operating profit compares with the 48.8 trillion won total operating profit for 598 companies that closed accounts in December 2006.
The ratio of operating profit to total sales of the 15 leading businesses was 12.1 percent.
Samsung Electronics topped the list with 63.2 trillion won in total sales and 5.9 trillion won in operating profit, but the profit has fallen 14.3 percent compared with the previous year, despite 7.2 percent increase in total sales.
Leading steel manufacturer POSCO's total sale was only one-third that of Samsung Electronics, but it fell little short of the chipmaker in terms of operating profit, recording 4.3 trillion won. Hyundai Motors' operating profit grew 47 percent to 1.8 trillion won, and total sales, 11.5 percent to 20.5 trillion won. LG.Philips LCD had total sales grow 38.8 percent to 14.2 trillion won, and it turned to operating profit in 2007 after recording loss in the previous year.
Banks had remarkable performances in 2007. Kookmin Bank ranked third in terms of operating profit, followed by Shinhan and Woori. Hana Financial Group ranked 9th, and Industrial Bank of Korea, 10th.
Kookmin Bank had operating profit grow 37.8 percent, and Shinhan had over 50 percent growth. Woori, Hana, and Industrial Bank of Korea all had two-digit growth rates in operating profit.