Korean industries have failed to pursue dynamic changes in terms of bring in new companies and kicking out uncompetitive ones for the past 15 years, an expert on South Korean companies said Tuesday.
Park Ju-gun, president of CEO Score, which analyzes data about the top 500 local companies and chief executives, said only 122 new companies, or 20 percent, joined the top 500 firms in Korea from 2000-2015, while 31 percent joined the top 500 ones in the U.S. in the same period.
“Analyzing data both in the U.S. and Korea, I found that the more dynamism within an industry, the better performance the industry showed,” Park said during a forum in Seoul.
“What’s noticeable is that the shipping industry, currently under restructuring, has not shown any change in the top five rankings since 2000. This shows how this industry’s dynamism lags behind,” he said.
By sector, IT-electronics, petrochemicals, steel and shipbuilding saw a decline in the number of companies, while services, daily goods and pharmaceuticals saw a rise in the number of businesses over the cited period.
Among the top 30 Korean firms by market cap, there is no single company which is less than 20 years old now, Park said. Naver Corp., the operator of Korea’s largest internet portal, is the only firm within the top 30 that is less than 30 years old, he said.
“Although Korea has (seen) only 70 years old in terms of industrialization, we (companies) are growing old. We need a new star,” he said.
The forum, held at a hotel in Seoul, had the theme of borderless industries and countless opportunities. It was organized by accounting firm Deloitte Anjin.
By Kim Yoon-mi (yoonmi@heraldcorp.com)