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Companies increase cashable assets amid economic woes: data
By Korea HeraldPublished : April 1, 2013 - 19:47
The nation’s largest conglomerates are choosing to hold more of their earnings in cashable assets as they find it harder to invest amid growing economic uncertainties.
Cashable assets include cash, cash equivalents and other short-term financial products with a maturity of less than three months that can be immediately cashed with little cost.
“Companies are increasing their cashable assets due to high economic uncertainties,” said Jeong Sun-sup, head of Chaebul.com, which tracks the business mammoths known as chaebol.
“The government should try harder to create a better environment for corporate investment, and the companies should invest more in facilities to help stimulate the economy.”
Korea’s facility investment in February plunged 18.2 percent from a year ago, though it gained 6.5 percent on-month. The on-year shrinkage is attributed to sluggish investment in machinery, electrical and electronic equipment.
Samsung Group, Hyundai Motor Group and GS Group, which enjoyed strong earnings last year, increased their cashable assets last year by 33.3 percent, 25.4 percent and 10.9 percent, respectively, according to data compiled by Chaebul.com.
The combined cashable assets of the 14 affiliates of Samsung Group jumped to 44.3 trillion won ($39.7 billion), 37.4 trillion won of which was held by Samsung Electronics. The tech giant posted record earnings last year ― 29 trillion won in operating profit and 201 trillion won in sales.
The nine affiliates of Hyundai Motor Group held some 34.5 trillion won in cashable assets as of December thanks to the robust exports of Hyundai Motor and Hyundai Mobis.
Samsung Group and Hyundai Motor Group accounted for some 63.7 percent of total cashable assets held by Korea’s 10 major business giants.
GS Group’s total cashable assets stood at 2.9 trillion won.
SK Group, LG Group, POSCO, Lotte Group, Hanjin Group and Hanwha Group, however, saw their cashable assets drop from a year earlier.
Cashable assets of Lotte Group, known for its ample cash holdings, were nearly halved to from 4.4 trillion won in 2011 to 2.4 trillion won last year.
The combined cashable assets of 83 listed firms belonging to the 10 largest conglomerates by assets surged 10 percent from a year ago to 123.7 trillion won as of December, according to Chaebul.com.
By Kim So-hyun (sophie@heraldcorp.com)
Cashable assets include cash, cash equivalents and other short-term financial products with a maturity of less than three months that can be immediately cashed with little cost.
“Companies are increasing their cashable assets due to high economic uncertainties,” said Jeong Sun-sup, head of Chaebul.com, which tracks the business mammoths known as chaebol.
“The government should try harder to create a better environment for corporate investment, and the companies should invest more in facilities to help stimulate the economy.”
Korea’s facility investment in February plunged 18.2 percent from a year ago, though it gained 6.5 percent on-month. The on-year shrinkage is attributed to sluggish investment in machinery, electrical and electronic equipment.
Samsung Group, Hyundai Motor Group and GS Group, which enjoyed strong earnings last year, increased their cashable assets last year by 33.3 percent, 25.4 percent and 10.9 percent, respectively, according to data compiled by Chaebul.com.
The combined cashable assets of the 14 affiliates of Samsung Group jumped to 44.3 trillion won ($39.7 billion), 37.4 trillion won of which was held by Samsung Electronics. The tech giant posted record earnings last year ― 29 trillion won in operating profit and 201 trillion won in sales.
The nine affiliates of Hyundai Motor Group held some 34.5 trillion won in cashable assets as of December thanks to the robust exports of Hyundai Motor and Hyundai Mobis.
Samsung Group and Hyundai Motor Group accounted for some 63.7 percent of total cashable assets held by Korea’s 10 major business giants.
GS Group’s total cashable assets stood at 2.9 trillion won.
SK Group, LG Group, POSCO, Lotte Group, Hanjin Group and Hanwha Group, however, saw their cashable assets drop from a year earlier.
Cashable assets of Lotte Group, known for its ample cash holdings, were nearly halved to from 4.4 trillion won in 2011 to 2.4 trillion won last year.
The combined cashable assets of 83 listed firms belonging to the 10 largest conglomerates by assets surged 10 percent from a year ago to 123.7 trillion won as of December, according to Chaebul.com.
By Kim So-hyun (sophie@heraldcorp.com)
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Articles by Korea Herald
