Brand Finance has released its annual roundup of the 50 most valuable South Korean brands with Samsung sitting firmly at the top of the list with a brand value that rose 12% to US$51.4 billion – which amounts to more than five times the value of the Hyundai Motors brand at number two.
“The world’s eyes are currently on the situation in the Korean peninsula and it is vital that the value and resilience of home-grown South Korean brands are recognized,” said David Haigh, CEO of Brand Finance. “Their success has contributed to the record growth of South Korea’s national brand.
Notable trends in the study:
- Samsung Fire & Marine, the second fastest growing South Korean brand this year, is up 42% to US$2.7 billion. It had an impressive 2016; its operating profit rose 209% year-on-year to 362 billion won, sales rose 3.2% to 1.48 trillion won and net profit increased 213.3% to 284.9 billion won. Its brand value is, undoubtedly, partially a result of its incredible performance.
- Hyundai’s performance has not fared as well as Samsung’s, in spite of the fact that the former is South Korea’s second most valuable brand with a value of US$8.8 billion, up 4% from the previous year. In 2016, the car manufacturer reported a 39% drop in the fourth quarter net profit to 1 trillion won (US$858 million), the lowest value in seven years.
- The company has attributed the loss to the July-September strike which resulted in increased production costs and cost Hyundai 95,400 vehicles worth of output. Furthermore, demand in its home and US market waned and sales levels suffered. Sales in the latter market may slip further in the future as President Trump could impose high tariffs on vehicles shipped into the US.
- Despite the negativity, Hyundai has now announced that it will further expand its SUV range to include an electric version of one of its models. This is part of the brand’s ‘eco-development roadmap’ that will feature low and zero emission vehicles to 31 global models in total by 2020.
- As environmental awareness becomes more prominent, it is important for brands to embrace and implement an improved business strategy to reflect the shift. Hyundai’s proposed initiative is certainly a step in the right direction and may push its brand value and strength up in the future.
- Following 43% increase this year to US$1.8 trillion, South Korea joined the club of the top 10 most valuable nation brands in the world. In a virtuous circle, corporate brands and the national image of South Korea are reinforcing each other and further add to the country’s attractiveness.”
You can view the complete list for 2017 here.