Big corporations to have increased operating profit 60% within 2 years, jobs to have been increased 1.4%
Park Jung Il | comja77@ | 2017-11-14 10:52:09

It has not yet led to the expansion of jobs although the performance of major conglomerates continues to be strong this year. It is noteworthy how large corporations, which have been suffering from the recession and some restructuring until recently 2 ~ 3 years ago, have struggled with their waistbands.

As of the end of June this year, Digital Times surveyed the top 20 companies with the highest market cap excluding pure holding companies and financial affiliates on a total of 389,319 employees It was counted compared with a total of 383,391 at the end of 2015, just 1.4% (5358). Samsung Bio Logics, the 11th largest market maker, excluded it because it is difficult to compare it with its new listed companies last year.

In terms of job growth, LG Chem fell 17.3 %, SK Telecom 12.2 %, S-Oil 11.2 %, Hyundai Mobis 10.0 %, while Samsung C & T and Samsung SDI fell double-digit. As for the number, Samsung Electronics increased the most with 1643 people. However, the actual number of employees seems to be very little. The number of employees increased to 99,382 at the end of 2014, but after the restructuring of the printer division, the number decreased to 92,300 at the end of last year. The number of new hires, mainly in the semiconductor sector, has increased to 98,541 this year, but it has not recovered to the 2014 level yet.

As LG Chem merged with LG Life Sciences earlier this year, the number of employees increased by 1,410, which is smaller than the actual number.

Jobs have not increased significantly, but the performance of the top 20 companies in the market for the same period has been high. This year`s consolidated sales and operating profit for the twenty largest companies that gathered financial information company Wise Fean`s estimates for securities firms were 903.8888 trillion won and 111.041 trillion won respectively. This is an increase of 12.7% and 58.6% compared to 2015, respectively. In particular, Samsung Electronics and SK Hynix both forecast sales and operating profit at record highs.

Meanwhile, major companies plan to increase recruitment this year. In fact, the Korea Institute for Economic Research (KIEP) surveyed new hiring plans for 500 domestic companies, and 74.6% of respondents said they would choose hiring at or above last year`s level.

However, recent earnings improvement is largely due to external factors, and market uncertainties remain, major companies said. Six of the top 20 companies in the actual market are large-scale device companies that are sensitive to the market, such as semiconductors, refineries, chemicals, and steel. They are also investing in new businesses such as internet and autonomous travel, electric cars, and biotechnology, but they are not yet at the level of boosting them.

A major company representative said, "Although the performance of major large corporations continues to be strong, there is a great deal of stagnation for some companies such as semiconductors and petrochemicals, and there is a limit to job creation due to the nature of the equipment industry. It is necessary to reshape the industrial structure that attracts the growth of export manufacturing.

By Park Jung Il comja77@


[ copyright ¨Ï The Digitaltimes ]