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Biz News Korea(Eng)
LG earns most from royalty charges among chaebols
- Collected
- 2017.04.11
- Distributed
- 2017.04.12
- Source
- Go Direct
According to business reports of each firm posted in regulatory filings, LG Corp. collected 247.8 billion won ($216.9 million) from LG business entities in royalty payment. The earning fell from 256.8 billion won in 2015 and 264.8 billion won in 2014 because LG Electronics’ sales slipped to 55 trillion won last year from 59 trillion won in 2014. Royalty is charged 0.2 percent to 0.3 percent on product sales.
SK Holdings earned 203.7 billion won from fees charged on the use of SK brand, down from 237 billion won in 2015 and 233.2 billion won in 2014.
CJ Corp. royalty gains last year rose to 83.4 billion won from 75.7 billion won in 2015.
GS Corp. earned 68 billion won and LS Corp. 20.5 billion won.
Some conglomerates charge affiliates on use of the brand even though they are not holding entities.
Hyundai Motor said in a regulatory filing last month that it will charge Hyundai Glovis 5 billion won and Hyundai Steel 8.95 billion won for use of its brand and trademarks. Hanwha Corp. expect 95.1 billion won in royalty earning this year. Doosan Corp. disclosed 134.3 billion won royalty payment from three affiliates between 2015 and 2017.
By Moon Ji-woong and Kang Young-woon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]