The brand value of South Korean leisure-related companies improved in the third quarter following the government's new policy to cut work hours, data showed Sunday, while that of liquor firms lost ground.
South Korea earlier reduced its maximum working hours to 40 hours plus 12 hours of overtime per week from 68 hours in July to reduce chronic overwork.
According to the data compiled by Brand Stock, leisure, healthcare and resort companies mostly saw their brand value gain ground following the change in policy. HanaTour Service Inc., for example, saw its brand ranking reach 21st place in the third quarter, up five notches from a quarter earlier.
Healthcare firm Bodyfriend Inc. moved up 10 spots to reach 36th place, with theater chain CGV also standing at 72nd place in the third quarter, up by 23 from a quarter earlier.
Resort operators such as Daemyung Resort Co. and Hanwha Hotels & Resorts Co. also saw their brand values improve following the cut in working hours.
Liquor and food companies, on the other hand, saw their brand value lose ground as the new policy induced companies to organize fewer work-related after-hour gatherings.
The brand value of Chamisul, a popular soju or distilled Korean liquor, fell to 22nd place, down nine spots from the previous quarter. The beer brand Cass slipped to 100th place from its former 73rd spot.
Companies embroiled in scandals suffered in terms of their brand reputation.
Korean Air Lines Co., which was slotted at 11st place in the first quarter, plunged to 46th place. The owner family has been in trouble following revelations earlier this year that his wife and two daughters used physical and verbal violence against company staff and other people under their influence.
German carmaker BMW moved out of the top 100 list following its vehicles catching fire in the country. BMW recalled over 100,000 vehicles in South Korea to fix faulty parts following dozens of engine fires in its cars so far in 2018.
Samsung Electronics Co.'s smartphone brand Galaxy topped the list, followed by supermarket chain E-mart and mobile messenger KakaoTalk. (Yonhap)