The entertainment expenses of the 30 largest Korean companies decreased nearly 30 percent on-year in the fourth quarter, following the enactment of the Kim Young-ran anti-graft act last September, according to corporate tracker CEO Score on Thursday.
The Kim Young-ran law sets a maximum price limit for food and gifts -- 30,000 won ($26.50) and 50,000 won, respectively -- for public officials and journalists, among other restrictions. CEO Score surveyed the entertainment expenses of 111 local affiliates under the 30 business groups.
|
(Yonhap) |
The survey found that among the 30 largest groups in Korea, entertainment expenses totaled roughly 21.2 billion won in the fourth quarter last year, a 28 percent decrease from a year earlier.
Along with the decline in entertainment expenses, the country’s top 30 companies also saw a 48 percent surge on average in operating profits as well as average sales growth of approximately 2.3 percent.
Kumho Asiana Group reported the largest decrease in meals and entertainment costs, with a 65.4 percent fall during the cited period, followed by Lotte with a 60 percent decline, GS with a 55 percent decrease and Mirae Asset with a 50 percent fall.
On the other hand, both KT and Hyundai Motor recorded an increase in entertainment expenses after the law was enacted. KT reported a 5.3 percent increase over the cited period, while Hyundai saw its expenses slightly up, with a 2.1 percent increase.
SK Group was listed as having the highest overall entertainment costs in the fourth quarter at 2.9 billion won.
By Julie Jackson (
juliejackson@heraldcorp.com)