Cash Reserves of Top 10 S. Korean Conglomerates Top 125 Trillion Won

11/3/2014 5:09:14 AM

(MENAFN- Qatar News Agency) Seoul November 02 (QNA) - The combined cash reserves of South Korea's top 10 conglomerates has reached over 125 trillion won about (US$117 billion) a market observer reported Sunday representing an apparent improvement in companies' finances.

According to the report from local market researcher Chaebol.com the combined cash reserves of the 10 largest businesses here came to 125.41 trillion won as of the end of September up 15.1% from 108.99 trillion won at end-2013.

Cash reserves include cashable assets and money invested in short-term market funds according to South Korea's (Yonhap) News Agency.

The rise in cash reserves may reflect the companies' improving financial conditions but it may also mean the companies are declining to make new investments.

The report also comes amid a government move to tax corporate reserves in an effort to spur fresh investments. The move however faces strong opposition from political parties including the ruling Saenuri Party whose chief lawmaker Kim Moo-sung has publicly said the government's job is to encourage investment by creating a favorable business environment.

By company cash reserves held by Samsung Electronics Co. the largest firm in South Korea spiked 22.9% over the cited period to some 54.5 trillion won though the company's overall sales dropped 9.4% on-year to 153.48 trillion won over the same period according to the report.

Cash reserves of the country's second-largest conglomerate Hyundai Motor Co. surged 15.2% on-year to 25.06 trillion won with those of LG Display a flat screen affiliate of LG Electronics Inc. gaining 1.8% to 2.36 trillion won.

South Korea's largest shipbuilder Hyundai Heavy Industries Co. saw its cash reserves shrink from over 6 trillion won at end-2013 to 5.5 trillion won as of the end of June. The company also the world's largest shipbuilder had reported an operating loss of 1.1 trillion won in the second quarter.

POSCO the country's largest steelmaker also saw its cash reserves shrink from about 7.18 trillion won at the end of last year to 5.53 trillion won as of the end of September. (QNA)

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