Korean firms' global competitiveness waning

By Kwak Yeon-soo

Graphics by Bae So-young

Korean companies' global competitiveness is dwindling amid the economic slowdown.

According to Forbes, a U.S. bi-weekly business magazine, only 62 Korean firms, including Samsung Electronics, made it onto its 2019 Global 2000 list of the world's biggest public companies, down from the previous year's 67.

The rankings of most Korean firms have also fallen sharply.

The setback reflects industry headwinds, such as declines in facility investment, consumption and exports in recent months, in contrast to President Moon Jae-in's optimistic view of the economy.

The Global 2000 list is ranked according to a composite score from equally weighted measures of revenue, profits, assets and market value. The results reveal major trends shaping the global economy this year.

The U.S. and China were two of only three countries that have added companies to the Global 2000 since last year.

The U.S. now has 575 companies on the list, up 16 from 559 last year. China recorded 18 additions this year, to 309 companies.

By companies, Samsung Electronics was 13th this year, from 14th in 2018. SK hynix ranked 179th, up 21 spots from last year. Other local firms tumbled in the rankings

Hyundai Motor ranked 225th this year from 147th last year and KB Financial Group fell 57 spots to 276.

POSCO dropped from 228 to 323, while LG Electronics fell from 411th spot to 502nd. In the wake of family scandals, Korean Air tumbled 358 spots, from 1088 to 1446.

“Compared with China, Korea is falling short on making the list of unicorns [startups valued at over $1 billion],” an industry analyst, who asked not to be named, said. “Only one startup became a unicorn company in the first quarter of this year.”