Thanks to the domestic stock market rally that has continued since last year, the asset of Toss, which operates a finance mobile application (app), topped 5 trillion won, making it a conglomerate (business group subject to disclosure) under the Korea Fair Trade Commission's close oversight. Companies that have securities firms as affiliates, including Daou Kiwoom, DB and Daishin, also climbed in asset rankings. The global K-culture boom also led to Kolmar Korea, a cosmetics ODM (research, development and manufacturing) company, and Orion, a food company, being newly designated as conglomerates.
Once designated as a conglomerate, a group must report the financial and management status of its domestic and overseas affiliates and its equity holdings to the Korea Fair Trade Commission (FTC) each year. If materials are omitted or falsely submitted, the group can be referred to prosecutors on suspicion of violating the Fair Trade Act.
◇ Toss, Daou Kiwoom and DB rise in asset rankings on stock market rally
On the 29th, the Korea Fair Trade Commission (FTC) said it will designate 102 corporate groups as business groups subject to disclosure as of May 1. The number of business groups subject to disclosure is up by 10 from last year. Newly designated groups are ▲Toss ▲LINE ▲The Korean Teachers' Credit Union (The-K) ▲Woongjin ▲Shieldus ▲Dae Myung Chemical ▲Kolmar Korea ▲Orion ▲Huiseong ▲QCP Group (formerly CUROHOLDINGS) ▲Iljin Global. In contrast, Youngone Group was excluded as total asset fell below 5 trillion won.
Toss, buoyed by the stock market rally, said its total asset stands at 5.423 trillion won this year. Companies with securities firms as affiliates also rose in asset rankings within the conglomerate list. The Korea Fair Trade Commission (FTC) designates corporations with asset of 12 trillion won or more as business groups subject to restrictions on mutual investments, overseeing them more strictly than business groups subject to disclosure, and Daou Kiwoom was newly designated this year. That reflects its total asset rising from the 10 trillion-won range last year to more than 12 trillion won this year. DB Group increased asset from 14.832 trillion won last year to 17.278 trillion won this year, lifting its ranking from 40th to 37th.
Thanks to the global Korean Wave boom, cosmetics and food companies were newly designated as conglomerates. Kolmar Korea's total asset came to 5.243 trillion won this year. Orion stands at 5.143 trillion won. Dae Myung Chemical, which owns clothing brands well known among people in their 20s and 30s such as Matin Kim, Marithe Francois Girbaud and Malbon Golf, was also newly designated as a conglomerate. Its total asset is 5.581 trillion won.
◇ Bithumb asset up 27%... ranking jumps from No. 90 to No. 76
Meanwhile, the total asset of business groups subject to disclosure rose 11.1% (367.7 trillion won) from a year earlier to 3,669.5 trillion won. The company with the biggest jump in asset ranking was Bithumb. Bithumb increased total asset from 5 trillion 200 billion won last year to 6 trillion 600 billion won this year, pushing its asset ranking up from No. 90 to No. 76.
Next, Sono International, which acquired T'way Air, saw total asset rise from 7 trillion 400 billion won to 10 trillion 500 billion won, with its ranking climbing from No. 64 to No. 52. Taekwang, which acquired Aekyung Industrial Co., rose from 8 trillion 700 billion won to 11 trillion 600 billion won, with its ranking up from No. 59 to No. 48.
Conversely, IS Holdings saw the largest drop in asset ranking, with asset falling from 5 trillion 400 billion won to 5 trillion 100 billion won and its ranking sliding from No. 84 to No. 101. Shin HiteJinro fell from 5 trillion 700 billion won to 5 trillion 600 billion won, with its ranking down from No. 78 to No. 88.
In addition, sales of business groups subject to disclosure rose 4.4% (87.5 trillion won) year over year to 2,095.2 trillion won, while net income increased 38.8% (43.8 trillion won) to 156.8 trillion won.