News
Interbrand launches Best Korea Brands 2024
The Best Korea Brands Conference 2024 to be held offline on May 23rd at the Grand Ballroom of the Grand Hyatt Seoul.
Under the theme ‘109 123 569: Brands as Impacts of Share Prices’ the conference will present brand growth strategies that positively impact actual corporate value.
The total value of the top 50 brands in 2024 has surpassed KRW 214 trillion, an increase of 6.6% from the previous year and 83.2% since 2014 (KRW 117 trillion).
The top 5 brands in South Korea are Samsung Electronics, Hyundai Motor Company, Kia, Naver, and LG Electronics, accounting for 72.2% of the total brand value.
In 2024, CJ Olive Young, Asung Daiso, and LG Innotek have newly entered the top 50 brands list, attracting attention.
Seoul,
May 23 2024
Interbrand, the world’s largest brand consulting group, led by CEO Jihun Moon, held the 12th “Best Korea Brands 2024” conference on the 23rd. The ‘Best Korea Brands 2024’ highlighted Korea’s leading brands that demonstrated remarkable performance over the past year, sharing the strategies behind their success. Additionally, the event celebrated the 30th anniversary of Interbrand Seoul and offered a glimpse into Interbrand’s vision for the future of branding.
Interbrand announced that the total value of Korean brands surpassed KRW 200 trillion for the first-time last year and continues to show steady growth. In 2024, the total value of the top 50 brands in Interbrand’s Best Korea Brands list reached KRW 214.194 trillion, marking a 6.6% increase from the previous year and an 83.2% increase from 2014. Despite the ongoing economic downturn and intensified competition across various industries, Korean brands have achieved significant growth by actively responding to changes and seizing opportunities.
Top 5 Best Korea Brands in 2024
Samsung Electronics – Hyundai Motor Company – Kia – Naver – LG
Samsung Electronics and Hyundai Motor Company maintained their positions as the top 2 brands in the Best Korea Brands 2024, just as they did last year. The brand value of Samsung Electronics (#1) increased 6.9% year-on-year to KRW 109.1235 trillion, while Hyundai Motor Company (#2) recorded a brand value of KRW 24.3682 trillion, up 20.9% year-on-year. Kia (#3) ranked the third position with a 9.5% increase in brand value, reaching KRW 8.4271 trillion. Naver (#4) ranked fourth, with its brand value rising by 7% to KRW 7.2215 trillion. LG Electronics, which experienced a remarkable growth of 54.5%, came in fifth with a brand value of KRW 5.5775 trillion. The value of these top five brands totaled KRW 154.7181 trillion, accounting for about 72.2% of the total value of the top 50 brands.
Top Growing
Expanding their reach by offering services that cater to customer needs based on strong brand assets
LG Electronics, LG Energy Solution, Coupang, and KakaoBank Achieve Double-Digit Growth Rates.
Among the top 50 brands this year, several companies achieved remarkable brand value increases with double-digit growth rates. LG Electronics (#5) recorded the highest growth rate of 54.5%, reaching a brand value of KRW 5.5775 trillion. LG Energy Solution (#43) followed with a 28.5% increase, achieving a brand value of KRW 546.9 billion. KakaoBank (#39) climbed six spots with a 26.8% increase, resulting in a brand value of KRW 591.4 billion. Coupang (#11) rose three places with a 24.3% growth rate, reaching a brand value of KRW 2.728 trillion. Additionally, Hyundai Motor Company (#2) recorded a 20.9% increase, with a brand value of KRW 24.3682 trillion.
These brands demonstrated their growth by leveraging strong brand assets to provide unique customer experiences. Coupang, which achieved its first annual operating profit in 14 years last year, showed explosive growth. The company strengthened its brand presence based on improved financial performance and invested over KRW 4 trillion annually in membership benefits, including free ultra-fast Rocket Delivery, Food Delivery, and OTT. This effort aligns with the brand vision of “How did I ever live without Coupang.” The number of active customers surpassed 21 million, a 16% increase from the previous year, converting nearly half of Korea’s population into active Coupang users. Efforts to enhance WOW membership benefits and expand product lines into luxury beauty and fashion positively impacted brand value. KakaoBank leveraged its integration with ‘Kakao’, Korea’s leading communication platform brand, to rapidly release tailored products for different age groups. With offerings like ‘loan refinancing,’ ‘monthly savings,’ and the ‘mini life’ daily record service, KakaoBank expanded its customer base across all age groups, from the 40s and 60s to the Zalpha (Z and Alpha) generations, laying the foundation for revenue and profit growth.
New Entrants
Notable efforts to discover new growth drivers by swiftly responding to rapidly changing trends
CJ Olive Young, Asung Daiso, and LG Innotek Join the Top 50 Brands in 2024.
CJ Olive Young (#33, KRW 723 billion), Asung Daiso (#49, KRW 411.7 billion), and LG Innotek (#50, KRW 405.6 billion) have newly entered the Top 50 Best Korea Brands in 2024. These companies have achieved remarkable success by adapting quickly to changing market trends, providing new brand experiences to consumers, and actively preparing for the future.
CJ Olive Young, one of the fastest-growing brands, demonstrated its strength through consistent expansion even during the pandemic, which slowed down offline retail. The company surpassed KRW 1 trillion in online sales in 2023 by continuously expanding its online presence amidst the non-contact trend. The enhancement of various omnichannel services to link online and offline experiences was a key growth driver. Asung Daiso achieved KRW 2.9457 trillion in sales in 2022 by expanding into large stores in key commercial areas and accelerating its e-commerce services. By capitalizing on the frugal consumption trend, which increased demand for value-for-money and essential goods, Daiso conducted various collaborations and swiftly responded to changing consumer needs. The full acquisition of shares in Japanese Daiso Sangyo exemplifies its quick adaptation and business innovation, solidifying its position as a ‘national store’. LG Innotek recorded over KRW 20 trillion in sales in 2023, showcasing extraordinary growth in the domestic manufacturing industry. With its flagship product, mobile camera modules, LG Innotek has maintained the top global market share for the past decade by continuously developing high-value camera module technology and supplying it to global tech giants. The company is actively preparing for the future by expanding its foundational technologies, including semiconductor substrates, optical design, precision manufacturing, and control, into new industries such as UAM (Urban Air Mobility) and space.
Top 10 Brands
Realizing Brand Vision through Differentiated Activities Based on Clear Direction
In 2024, the top 10 Best Korea Brands actively engaged in brand activities centered around their respective goals, which emphasized “enhancing customers’ lives,” resulting in tangible achievements and the realization of their brand visions.
Hyundai Motor Company (#2) has secured leadership in the future mobility sector with its IONIQ brand, which aligns with the paradigm shift towards the electric vehicle market and promotes an eco-friendly lifestyle. Collaborating with various AI research institutes, Hyundai has rapidly built a future mobility ecosystem. By actively communicating its half-century automotive legacy narrative, the company differentiates itself from emerging electric vehicle brands. Additionally, Hyundai introduced the ‘HTWO Grid’ solution utilizing hydrogen, transforming its brand vision ‘Progress for Humanity’ into visible achievements through various human-centric sustainability activities. Naver (#4) achieved record-breaking revenue and operating profit in 2023 based on its commerce and content businesses. Adhering to its brand vision of being a ‘technology platform for all,’ Naver swiftly responded to market changes and effectively addressed customer needs with hyper-personalized recommendations. Expanding these businesses globally enhanced brand presence, contributing to a rise in brand value. Moreover, Naver actively pursued the realization of future growth drivers such as AI and cutting-edge technologies to stay competitive amid the intensifying generative AI service competition following the advent of Chat GPT. LG Electronics (#5) is evolving beyond a home appliance company to become a ‘Smart Life Solution Company,’ reflecting a clear brand direction. Through active internal and external brand activities, LG is showcasing its transformation. At CES 2024, LG displayed its vision by creating exhibition spaces for smart home, commercial, and mobility solutions, highlighting its commitment to providing better experiences across all aspects of life as a Smart Life Solution Company. In 2024, LG plans to continue transitioning to a future-oriented business portfolio while focusing on breaking through limitations to maximize business potential.
Leading Brand Value: Announced “Brands as Impacts of Share Prices” Branding Insights
Interbrand has presented branding insights through the Best Korea Brands 2024, focusing on specific growth strategies and case studies of brands that positively impact actual corporate value. The core theme of this conference, “Brands, Transforming Stock Prices,” moves beyond the qualitative and conceptual discussions of the relationship between brand and corporate value to a quantitative and practical examination of how brands influence stock prices.
According to Interbrand, companies with high brand value also outperform the market average in the stock market. For instance, companies listed among the Best Global Brands exhibit an 84% higher stock price increase compared to the S&P average, while those listed among the Best Korea Brands show a 41% higher stock price increase compared to the KOSPI average. These examples highlight the growing significance of brand assets in corporate value and the positive impact of high brand value on stock prices, indicating that brands now influence not only consumers but also investors.
Interbrand emphasized that as the line between consumers and investors becomes increasingly blurred, branding must consider public investors rather than just targeting general consumers through marketing and promotion. To ensure that brand value accurately translates to stock prices, companies should: ▲Accurately assess their brand value, ▲Conduct a thorough brand diagnosis from an investor’s perspective, ▲Explore new directions for investor relations (IR) strategies, ▲Emphasize transparent management and brand ethics.
“Through the Best Korea Brands 2024, we confirmed that a clear narrative explaining brand value can persuade stakeholders and lead corporate value in the stock market. We hope the insights and methodologies provided by Interbrand will help companies maximize the influence of their brand value and enhance their corporate value and stock prices.” commented Jihun Moon, CEO, Interbrand Seoul.
Interbrand annually evaluates global brands, selecting the top 100 brands based on brand value, and publishes the “Best Global Brands” ranking, recognized as a significant ranking in the branding and marketing industry.
Since 2013, Interbrand Seoul has used the same global evaluation criteria to select the “Best Korea Brands” each year, offering new business-oriented perspectives to branding and marketing professionals. The annual “Best Korea Brands Conference” has become a crucial platform for exchanging branding insights and networking among leading corporate branding and marketing professionals in Korea.
Detailed information and rankings of the Best Korea Brands 2024 can be found on Interbrand Seoul’s website.
For more information, please contact:
Leah Kim
[email protected]
Interbrand has been a world leading brand consultancy for over 5 decades – having pioneered iconic work and forged many of the brand building tools that are commonplace across the industry today.
In collaboration with the world’s leading brands, Interbrand’s global team of thinkers and makers are pioneering the future of brand building. By turning customers into active participants, Interbrand helps clients strengthen their brands on an ongoing basis – its approach gives them the confidence to make Iconic Moves that spark desire and create utility, driving extraordinary results.
Interbrand is a part of Omnicom’s (NYSE:OMC) Brand Consulting Group.