Top 50 Korean companies’ brands are undervalued

It is reported that the growth of leading Korean companies' brand value lags behind that of global companies. Experts say that Korean companies are relatively undervalued in terms of their technological prowess and product competitiveness. It is crucial to have competitiveness to boost Korean brands’ competitiveness on the global stage. According to Interbrand, a global brand evaluation agency, on Monday, the brand value of the top 50 global companies last year was 2.77 trillion U.S. dollars, a 110.8% increase compared to 1.31 trillion dollars in 2014. During the same period, the brand value of Korea's top 50 companies only increased by 71.9%, from 116.9 trillion won to 201 trillion won. The self-evaluations made by Korean companies, as well as domestic experts, were similar.

In a survey by The Dong-A Ilbo on strategy and marketing executives of Korea's 30 largest groups and 70 scholars from the Korean Society of Management History, 59% believed that Korean companies are undervalued in terms of actual capabilities and potential.' The response was particularly high at 23, 76.7% among executives working for Korean conglomerates in their 30s. They added comments such as “undervalued business value leads to a limited investment market” and “the issue relates to the nation's brand value.” For Korean products or services (not brand or company), 38% of those surveyed saw them as undervalued, while 47% replied that they were being duly valued. In other words, Korean products and services are recognized for their value in the global market, but the evaluation of Korean companies that produce them is undervalued.

Foreign companies such as Apple, Coca-Cola, Mercedes-Benz, and Disney have large fan bases in the global market. Such strong brands create synergies that increase product competitiveness. On the other hand, low brand value makes it difficult to boost product competitiveness. Experts advise companies to utilize corporate heritage more effectively to increase brand value. “Developing heritage is about branding history. Brand links to market competitiveness, while heritage makes market competitiveness sustainable,” said Mo Jong-rin, a professor at Yonsei University’s Graduate School of International Studies.


홍석호 기자 will@donga.com · 송진호 기자 jino@donga.com