SK jumped to second place, behind Samsung, with a 22% year-on-year increase in total assets to 292 trillion won, as its businesses in semiconductors, batteries, and pharmaceuticals grew.
It was also helped by the listing of two subsidiaries.
Each year, the commission publishes information about conglomerates, known as chaebol, with assets of 5 trillion won or more.
Such companies are subject to stricter rules, including a requirement to disclose payments to owners.
If a chaebol has more than 10 trillion won in assets, it also faces restrictions on reciprocal investments between subsidiaries and a cap on voting rights if the group contains a financial business – rules aimed at preventing the formation of oligopolies.
So far this year, 76 group companies have already been told that they need to disclose their assets.
Samsung remains the undisputed leader, led by its Samsung Electronics, which brought in sales of 274 trillion won in 2021.
The group also controls construction and trading business Samsung C&T, Samsung Life Insurance, shipbuilder Samsung Heavy Industries, biopharmaceutical maker Samsung Biologics and more.
Its total assets increased 6% from the previous year to 484 trillion won.
Now in third place, Hyundai Motor’s assets grew 5% to 258 trillion won.
The group expanded the scope of its business by investing in electric vehicles, but failed to match the speed of SK’s growth.
SK’s expansion was driven by its semiconductor business, which was led by SK Hynix.
In December 2021, the company acquired part of Intel Corp’s semiconductor memory business in the US and a semiconductor plant in Dalian, China.
Its business grew as the memory market recovered.
Additionally, SK Siltron and SK Materials, semiconductor-related materials companies, have seen their performance improve thanks to SK Hynix’s growth.
On top of that, SK On, a battery subsidiary of SK Innovation, made a series of major investments over 2021, including plans to build three joint plants with Ford Motor of the US.
The company is strengthening its presence in the growing industry of auto batteries by expanding its own factories.
The listing of SK’s pharmaceutical subsidiaries also led to an increase in funds, capital investment and R&D expenses.
SK Bioscience, which is involved in the contract manufacturing of biopharmaceuticals, and SK Biopharmaceuticals, a pharmaceutical maker, were listed in Seoul.
SK, which started as a textile business, was established in 1953.
The company acquired Korea Oil Corp (now SK Innovation) in 1980, Korea Mobile Telecommunications (SK Telecom) in 1994, and Hynix Semiconductor (SK Hynix) in 2012, becoming the conglomerate it is today, focused on energy, communications and semiconductors.
Chairman Chey Tae-won led the 3.4 trillion acquisition of Hynix Semiconductor in 2012 when the memory market was at its worst.
SK Hynix has earned a cumulative net profit of 56 trillion won over the 10 years through 2021, making it the biggest earner of the entire SK Group.
Backed by a steady source of revenue, the company is expanding ambitiously, including investing in Kioxia, the world’s second-largest flash memory maker, and the acquisition of Intel’s business.
Of the top 15 companies, the only other one to advance in the rankings was internet giant Kakao at 15th place.
It increased its assets by 61% from the previous year, moving up from 18th place.
Kakao is largely responsible for the 2021 listings of online bank KakaoBank and payment app company KakaoPay.
Using data mined from its messaging app, the company is expanding into such businesses and also ride-hailing and content distribution.
While it has grown rapidly, Kakao’s tight grip over its digital platform and its high fees have caused friction with taxi drivers, restaurants and other self-employed contractors.
There is also a growing move to impose regulations on “new chaebol” like Kakao and Naver.
The new administration in South Korea is looking for ways to improve ties between the government and businesses.
Just 10 days after president Yoon Suk-yeol’s inauguration on May 10, US president Joe Biden visited South Korea.
With “private-sector initiative” a main part of his economic policy, Yoon invited chaebol leaders not only to his inauguration dinner, but also his dinner with Biden.
The following week, major conglomerates announced a series of investment and hiring plans for the next five years or so, as if to coincide with the start of a new relationship with the government.
Samsung Group will invest 450 trillion won in capital investment and R&D, mainly in semiconductors and biopharmaceuticals.
Hyundai Motor Group, together with its subsidiaries Kia and Hyundai Mobis, will invest 63 trillion won; and Lotte Group will invest 37 trillion won.
SK will invest 247 trillion won in mainly semiconductors and batteries, LG will invest 106 trillion won, and Posco will invest 53 trillion won.
These sums together exceed the national budget of 496 trillion won, indicating the faith these chaebol are placing in the Yoon administration.
These companies had distanced themselves from former president Moon Jae-in after the heads of Samsung and Lotte served jail time in the bribery case against former president Park Geun-hye during his government.