Samsung, Hyundai Ranked Best Blue Chip Companies of Emerging Markets

Samsung Electronics Co. and Hyundai Motors were selected as two of the best blue chip companies in emerging markets yesterday.

The latest edition of Newsweek reported that global wealth and power are shifting with the rapid growth of multinationals in emerging markets and listed 10 major blue chip corporations in those markets. The 10 blue chip companies were selected by Antoine van Agtmael, president of Emerging Markets Management (EMM) at the request of Newsweek. President Agtmael first used the word “emerging market” in 1981.

Newsweek said that Samsung Electronics Co. and Hyundai Motors ranked in first and second place, respectively, followed by Taiwan’s semiconductor company TSMC and Hon Hai Precision Industry Co. and China’s computer manufacturer Lenovo. Agtmael noted, “Samsung Electronics is already more well-known than Sony, has a bigger research and development budget than Intel, and is the biggest memory chip and flat screen producer in the world.”

Agtmael also pointed out, “Hyundai Motors symbolizes the recovery of the Korean economy rising from the ashes of Asian financial crisis,” and added that though Hyundai Motors was derided on the U.S. talk shows for its low quality in the past, it stepped up its efforts to improve quality and develop design and recently outdid Toyota in a car performance customer satisfaction survey by JD Power and Associates.

Newsweek analyzed that blue chip companies in emerging markets, including the 10 corporations mentioned above, are leading the world’s economy. As recently as 20 years ago, there were only 28 emerging-market companies out of the world’s 500 biggest companies, but there are now 61 of them. Newsweek also said that the market capitalization of emerging markets jumped to $6.4 trillion now from $1.2 trillion in 2000, and from $80 billion 25 years ago.

redfoot@donga.com