South Korean conglomerates, wary of economic uncertainties and weak domestic demand, are sitting on large amounts of cash despite government pressure for them to spend more on wages, dividends and facilities, data showed Monday.

The combined retained earnings of 96 listed firms affiliated with the country's 10 largest business groups came to 503.9 trillion won ($453 billion) at the end of last year, up 37.63 trillion won, or 8.1 percent, from a year ago, according to the data compiled by conglomerate tracker Chaebul.com.

Retained earnings refer to accumulated earnings held by a company after taxes and dividends are paid out. The reserves also include capital surplus.

A rise in such surplus cash reserves usually reflects a firm's improved financial conditions, but it also could mean the company is reluctant to spend on dividends and investments.

The South Korean government has pressured local companies to spend more, urging them to join in a drive to boost domestic demand as Asia's fourth-largest economy is losing growth momentum.

Starting this year, the government is taxing corporate cash reserves that are in excess of a certain amount in a broader effort to spur fresh investments and revive weak domestic demand by prodding companies to open their pockets, hoping the money will trickle down to households to give them extra cash for consumption.

Under the revised tax code, an estimated 4,000 companies will have to pay a surcharge on their corporate taxes unless they spend a certain portion of their earnings on wages, dividends and investment.

Recently, local companies have also come under growing pressure to boost wages, which the government claims would help boost private spending in the country.

By group, Samsung Group, the country's top conglomerate, held the largest amount of retained earnings at 196.7 trillion won at the end of last year, a 11.7 percent rise from a year ago.

Samsung Electronics Co., the group's flagship unit, held 138.87 trillion won in retained earnings at the end of last year, up 9.8 percent from a year ago, the data showed.

Cash reserves of the country's second-largest conglomerate, Hyundai Motor Group, surged 10.9 percent to 102.15 trillion won over the cited period, with that of energy and telecom conglomerate SK Group gaining 11.4 percent to 53.5 trillion won. Home appliances giant LG Group added 1.87 trillion won to total 42.3 trillion won.

Shipbuilding conglomerate Hyundai Heavy Industries was the only conglomerate that saw its retained earnings dip 14.6 percent to 15.62 trillion won, the data showed. (Yonhap)