Labels:text | screenshot OCR: BUSINESS & INDUSTRY Top 5 Companies by Profits, 1992 ( US $ M ) Moreover, 18 of Korea's 35 representatives came from the construction sector, the engine of its economy between 1989 and 1992. "The main rea- Indocement 16 son for the construction boom was former Pre- Resorts WWorld 152 sident Roh Tae Woo's 1988 plan to build two mil- lion housing units," says Lee Kyung Young, senior Genting 147 manager of SsangYong Securities in Hong Kong. Korea Long Term Despite their rapid growth, some of the top com- Credit Bank 100 panies among the 88 are largely shunned by major Semi-Tech (Global) 100 investors. "The markets in this part of the world are quite immature and many of the companies are 50 100 150 200 not large enough for institutional-size holdings," explains Andrew Harrington, a vice-president of another possibility. "In Korea, like in Japan," he Salomon Brothers Hong Kong. "Some of the mar- says, "companies have a bias of going for sales kets also have to improve rules and regulations to rather than profits, of setting margins to go for market share." That seems to be supported by Ko- ensure full disclosure and greater transparency." Companies rea's Hyundai Motor Service; its revenues surged like MBf Hold- from US$1.12 billion in 1989 to US$4.12 billion in ings, Guoco and 1992, but net profits edged up just 4.4 per cent Semi-Tech, three during the same period to US$32.6 million. of Asia's most So why did Korean companies outperform? aggressive, face GLT 150 Besides the previously mentioned factors, its an additional pro- VOLVO companies have been less affected by a slowing blem. Although economy than their Japanese counterparts. they have sub-
(.png)
