To increase corporate value...Half of Return on Equity of Major Companies

Despite the government's policy to enhance corporate value, the return on equity capital of major domestic companies has been halved in the past three years.

Return on equity is the value obtained by dividing the company's net income by capital and is an indicator of how much the company has made by using equity capital, which is a shareholder's stake.

The average return on equity fell to 5.2% in 2023 from 10.1% in 2021, according to an analysis of 286 listed companies among the top 500 companies in the country by the business analysis institute Leaders Index.

By industry, the service sector's return on equity fell the most to 3.2 percent from 27 percent, while Naver plunged to 4.1 percent from 68.5 percent.

In addition, IT and electrical electronics industries, including Samsung Electronics and SK Hynix, and petrochemical industries, which are suffering from a series of deficits due to the recession, also fell sharply.

On the other hand, the shipbuilding, machinery, and equipment industries saw their return on equity capital rise due to increased shipbuilding orders and the conversion to surplus.