South Korea’s Major Corporations Lag in New Ventures, Survey Reveals

Over Half of Top Firms Haven’t Initiated New Business Objectives in Five Years, Raising Concerns About Strategic Agility

A recent survey by CEO Score, a corporate data research institute, has unveiled a troubling trend among South Korea’s leading corporations: over half have not embarked on any new business ventures in the past five years. The investigation, which scrutinized the business reports of 331 of the top 500 South Korean companies since 2018, found that 175 companies—52.9%—did not introduce any new business objectives during this period.

This lack of diversification is particularly concerning for industry giants like Samsung Electronics, which has not added any new business ventures in the last decade. This stagnation raises serious questions about the long-term strategic planning of these corporations, especially as the global market continues to evolve rapidly.

Mixed Success in New Ventures

Of the remaining 156 companies that did initiate new business objectives, they collectively introduced 684 new ventures. However, only 487 (71.2%) of these ventures are currently operational, while 197 (28.8%) have yet to commence. Notably, 15 companies, including IS Dongseo, Daou Technology, and Hanwha Ocean, have seen none of their new ventures become operational.

Sector-Specific Trends

The survey highlights several trends in the sectors that have seen new business initiatives. Future-oriented automobiles have been the most popular new business focus, with 22 companies, such as Hyundai Glovis and NVH Korea, pursuing advancements in electric and hydrogen vehicle infrastructure. Hyundai Glovis, for instance, has launched four initiatives related to electric vehicle charging and hydrogen storage.

In the energy sector, 17 companies, including HD Hyundai Oilbank and Korea Gas Corporation, are focusing on solar power generation and hydrogen energy production. Companies like Hanjin and Lotte Chilsung Beverage are installing solar power facilities in unused spaces, while Korea Gas Corporation and S-OIL are developing hydrogen infrastructure.

The AI and big data sectors have also attracted attention, with 17 companies, including credit finance firms like Shinhan Card and Samsung Card, setting new business objectives. SK Telecom is applying AI to animal hospital diagnostics, while Cosmax utilizes AI for hyper-personalized beauty recommendations.

Commitment to Eco-Friendly Initiatives

SK ecoplant has emerged as a leader in eco-friendly business ventures, with 11 initiatives focusing on wastewater management, carbon capture, and energy systems. Other notable companies, such as Hyosung TNC and Hyundai Engineering, are also investing in sustainable business practices.

Conclusion

The status of these new business ventures presents a mixed picture of innovation and operational challenges among South Korea’s top corporations. While some companies are making strides in emerging sectors, others remain cautious or face difficulties in bringing their new business objectives to fruition. These findings underscore the critical need for strategic agility and innovation to maintain competitiveness in an increasingly dynamic global market.

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