Korean conglomerates bulk up under Lee presidency

The average revenue growth at Korea's top 10 conglomerates, including Samsung and Hyundai Motor, under the Lee Myung-bak presidency was about four times larger than during the rule of Lee's predecessor, Roh Moo-hyun, data showed Sunday.

Since Lee's inauguration in February 2008, the 10 family-owned business groups, also known as chaebol, posted an average 13 percent annual growth in revenue, compared with 3.1 percent recorded under Roh's presidency, according to an analysis of their financial statements and Fair Trade Commission filings.

Excluding the year 2009, when the nation was hit hard by a global financial crisis, the top chaebol's revenue jumped 15-19 percent on annual average.

The data also showed an increase in the portion of their revenue in the country's nominal gross domestic product (GDP). Their combined revenue accounted for 52.6 percent of South Korea's GDP in 2003-2007, but trended higher to 69.1 percent in 2008-2011.

The 10 chaebol also expanded in terms of size under Lee. The number of their affiliates jumped 53.3 percent to 581 units, while they grew 21.5 percent to 379 units in the former presidency.

The data, however, showed the net profit of the 10 conglomerates fared better under the leadership of Roh. Their net profit increased 8.5 percent annually on average in 2008-2011, slumping from 13.1 percent in 2003-3007.

In 2004, Samsung posted a record net profit, sending the combined net profit of the top 10 chaebol soaring 52.9 percent from a year earlier.

The top conglomerates' combined net profit claimed 6.5 percent of their total revenue in the Roh presidency, but slipped 1.1 percentage points to 5.4 percent under President Lee.

Korea's top 10 chaebol also include SK, LG, GS, Lotte, Hanwha, Hyundai Heavy Industries and Hanjin. (Yonhap)