Hyundai Motor Co. has been named South Korea’s top-performing company in Time magazine’s annual ranking of the World’s Best Companies this year, climbing to 33rd place worldwide, a dramatic leap of 159 spots from last year.
The US current affairs magazine, which compiles the list with German data firm Statista, evaluates 1,000 global companies based on employee satisfaction, revenue growth and environmental, social and governance (ESG) performance.
The automaking unit of Hyundai Motor Group, which includes Kia Corp. and premium brand Genesis, is the only Korean company to make Time’s top 100 this year, placing well ahead of Japan’s top automaker Toyota Motor Corp., which ranked 48th.
The top spot on Time’s list went to Nvidia Corp., reflecting the growing dominance of AI-focused technology firms in global markets, followed by Microsoft Corp.
Apple Inc., which ranked first last year, fell out of the top 100 this year due to a slowdown in sales growth.
HYUNDAI’S SHARP ASCENT
Hyundai’s sharp ascent was underpinned by strong business momentum, rising employee satisfaction and sustained ESG efforts, according to Time and the Korean automaker.
In an internal survey last year, Hyundai Motor employees rated job satisfaction at a record 79.4 points out of 100, while voluntary turnover stood at just 0.39%, among the lowest in corporate Korea.
The automaker’s financial results have also strengthened.
Hyundai’s revenue rose 23% to 175 trillion won ($123 billion) last year from 142 trillion won in 2022, while operating profit increased by 45% to 14.2 trillion won from 9.8 trillion won over the same period.
Hyundai has been expanding its ESG initiative through large-scale renewable energy purchase agreements in Korea, the US and India as part of its RE100 pledge to transition all global operations to renewable power.
Governance reforms have included introducing a lead independent director, creating a dedicated independent board and allowing shareholders to recommend outside directors.
The (Time’s) recognition “carries significant meaning as it reflects an independent, credible assessment of the company’s global competitiveness,” said a Hyundai official.
He added that the recognition will strengthen investor confidence and bolster the automotive group’s brand reputation worldwide.
By In-Soo Nam
isnam@hankyung.com
Jennifer Nicholson-Breen edited this article.
