According to Brand Finance's latest Global 500 2024 report, which ranks the world's 500 most valuable brands, almost all South Korean brands saw an increase in brand value.
Despite a 0.3% decline in brand value to $99.4 billion, Samsung remains the most valuable brand in South Korea and the most valuable brand in East Asia outside of China. Samsung's slight decline can be attributed to industry-wide challenges such as falling prices and weak market conditions. However, Samsung has improved its Brand Strength Index (BSI) score to 85 out of 100, with a corresponding improvement in its brand strength rating from AAA- to AAA. This significant increase reflects Samsung's increased presence and recognition in the market.
The second most valuable brand in Korea is Hyundai Group, which maintained its AA+ brand strength rating while increasing its BSI score by two points to 77 out of 100. The brand's performance was driven by its strong presence in Korea and improved public reputation and awareness. Meanwhile, SK Group saw a slight decline in its BSI score to 68 out of 100, as its brand strength rating fell to AA-. However, the brand remains among the top three most valuable brands in South Korea with a 2% increase in brand value to $23.1 billion. This growth was driven by the overall brand value and increased BSI scores of its various subsidiaries, including SK Hynix, SK Networks and SK Discovery.
Hyundai Group emerged as the second most valuable brand with a 36% increase in brand value to $37 billion. Hyundai Group's BSI score increased by two points to 77 out of 100, maintaining its brand strength rating of AA+. Hyundai Group's strong presence in Korea contributed to its improved reputation and awareness.
Rounding out the top three, SK Group's brand value increased 2% to $23.1 billion. Despite a slight decline in its BSI score to 68 out of 100 and a drop in its brand strength rating to AA-, the company continued to grow, demonstrating its overall brand resilience, driven by increases in the brand value of its affiliates, including SK Hynix, SK Networks and SK Discovery.
All three major Korean brands demonstrated their commitment to technological innovation by incorporating artificial intelligence (AI) into their products or investing in related technologies. Samsung's launch of Galaxy AI and Samsung Gauss, Hyundai's Ioniq 5 robo-taxi, and SK Group's investment in generative AI solutions demonstrate a forward-looking approach.
The report's findings suggest that Korean brands have a clear vision and strategy to increase their brand value and strength in the global market. At the core of the leading brands are new opportunities and challenges that demonstrate their ability to adapt in a rapidly changing digital environment, while capitalizing on national brands and cultures that are known among consumers and stakeholders for their dynamism, creativity and quality.
Alex Haigh, Managing Director, Asia Pacific, Brand Finance, said: "Korean brands have shown resilience and growth in the Brand Finance Global 500 despite challenges such as the global economic downturn and rising inflation. Together with Hyundai Group, Samsung has secured the title of the fastest growing flagship brand in terms of brand value among Korean companies. This achievement is a result of its groundbreaking technological innovations.
Global Brands
Apple reclaimed the title of the world's most valuable brand with a 74% increase in brand value to $517 billion worldwide. Apple's success is attributed to its dominance in the premium smartphone market, as well as its strategic diversification into wearables and services.
There was also significant growth in AI, with Nvidia becoming the fastest growing brand in the world with a 163% increase in brand value. Microsoft also showed impressive growth, jumping to second place with a 78% increase in brand value.
Deutsche Telekom overtook Verizon to claim the title of the world's most valuable telecommunications brand. The brand's leadership in customer satisfaction metrics, along with its successful fiber rollout and 5G leadership, contributed to its global recognition.
Tesla, on the other hand, was pushed out of the top 10 and dropped to 18th place due to the impact of its exposure to the Chinese electric car market. BYD overtook Tesla to become the world's largest EV manufacturer. Nevertheless, Tesla's brand value remains high, underscoring the continued importance of brands as corporate assets.
The Brand Finance Global 500 2024 report highlights the resilience and growth of Korean brands amidst global challenges. However, the report warns that Korean brands may face several risks and uncertainties in the future, including geopolitical tensions, political and social conflicts, environmental changes, and shifts in consumer preferences and behaviors. Therefore, Korean brands need to be agile and adaptable, and continuously monitor and evaluate brand performance and perception. Brands are only as valuable as the values they represent, how they are perceived, and how they truly connect with consumers and social communities.
