Hard Knocks Upset Rankings of Korean Conglomerates

Seismic changes are underway in the rankings of the country's top 30 conglomerates, according to industry tracker CEO Score on Wednesday.

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Hanjin Group lost its place in the top 10 and dropped to 13th place after it shipping arm went bankrupt last year, to be replaced by Shinsegae Group.

Kolon joined the ranks of the top 30 for the first time, and Hyundai Group lost its status as a major business group after selling off Hyundai Securities and Hyundai Merchant Marine. Mirae Asset shot up six notches after it acquired Daewoo Securities to become the nation's 18th-largest conglomerate.

CEO Score ranked them based on assets as of the third quarter last year.

There were no changes among the top nine -- Samsung, Hyundai Motor, SK, LG, Lotte, POSCO, GS, Hanwha and Hyundai Heavy Industries.

Shinsegae's total assets rose 13.1 percent from the previous year to W32.98 trillion thanks to a W1 trillion investment in a massive mall in Hanam south of Seoul, new duty free shops and openings and expansions of department stores in Daegu, Gimhae and Seoul's Gangnam (US$1=W1,167).

But Hanjin's subsidiaries dwindled from 38 to 30 with the liquidation of Hanjin Shipping and affiliates, and its assets plunged 20.9 percent to W7.7 trillion.

Mirae Asset achieved the biggest jump in its ranking. Ranked 24th a year earlier, it has shot up to 18th as subsidiaries increased by 14 to 42 and assets 47 percent to W15.96 trillion.

Kolon returned to the top 30 ranking after dropping out in 2015. Although the number of subsidiaries shrank due to restructuring, it expanded its high-tech materials business to see assets increase 4.8 percent to W434.4 billion.