Are Corporate Earnings in S. Korea Set to Rise by 20.6% in 2024?
Synopsis
South Korea's corporate earnings are on the rise, with a remarkable 20.6% increase reported for 2024, primarily fueled by semiconductor exports. Discover how this rebound affects the manufacturing sector and the government's focus on eco-friendly technologies. Dive into the insights that reveal the future of South Korea's economy.
Key Takeaways
South Korean corporations' earnings grew by 20.6% in 2024.
The manufacturing sector's profit increased by 32% .
Research and development spending rose by 21.4% .
China is the top destination for South Korean subsidiaries.
The government aims to distribute eco-friendly HVAC systems to combat climate change.
Seoul, Dec 16 (NationPress) Earnings of South Korean corporations saw a remarkable 20.6% increase year-on-year in 2024, primarily driven by a surge in semiconductor exports, according to recent government data released on Tuesday.
The aggregate before-tax net profit of South Korean firms reached an impressive 181.9 trillion won (approximately $123.9 billion) last year, marking a significant recovery from 150.8 trillion won reported in 2023, as per statistics compiled by the Ministry of Data and Statistics, reported by Yonhap news agency.
This rebound comes after two consecutive years of decline, as indicated by the data.
The manufacturing industry, which is the backbone of the South Korean economy, reported a pre-tax net profit of 123.5 trillion won in 2024, which is an increase of 29.7 trillion won, or 32%, compared to the previous year.
According to Yoon Hee-cho, an official from the agency, “Corporate earnings were significantly enhanced by a rise in semiconductor exports, as 2024 emerged as a pivotal year for artificial intelligence (AI).”
In response to this positive trend, South Korean corporations have ramped up their investments in research and development (R&D), with expenditures in this area climbing 21.4% year-on-year to reach 97 trillion won.
The total sales of the surveyed companies hit 3,371.1 trillion won this year, reflecting a 5.2% increase from the prior year.
The data also revealed that 40.3% of the surveyed firms, totaling 6,009 out of 14,922, maintained subsidiaries both domestically and internationally.
China represented the largest share of these subsidiaries at 21.9%, followed by the United States at 16.4% and Vietnam at 11.8%.
A total of 401 companies ventured into new business domains in 2024, with 54.9% of these in the manufacturing sector.
Simultaneously, the South Korean government is targeting the distribution of 3.5 million eco-friendly heating, ventilation, and air conditioning (HVAC) systems by 2035, as part of its climate change initiatives, officials disclosed on Tuesday.
The government anticipates that this distribution, which involves heat pumps, will lead to a reduction of 5.18 million tons in greenhouse gas emissions, as reported by the Ministry of Climate, Energy and Environment.
Point of View
This growth in corporate earnings is a testament to South Korea's resilience and innovation in technology. The focus on sustainable practices alongside economic growth reflects a balanced approach that can serve as a model for other nations.
NationPress
20 Jun 2026
Frequently Asked Questions
What was the percentage increase in corporate earnings for South Korean companies in 2024?
Corporate earnings for South Korean companies recorded a 20.6% increase in 2024.
What sector contributed significantly to this earnings growth?
The semiconductor export sector was a major contributor to the earnings growth.
How much did South Korean companies spend on R&D in 2024?
South Korean companies increased their R&D spending to 97 trillion won , reflecting a 21.4% rise year-on-year.
What is the government's goal regarding eco-friendly HVAC systems?
The South Korean government aims to distribute 3.5 million eco-friendly HVAC systems by 2035.
Which country had the largest share of South Korean subsidiaries?
China accounted for the largest share of South Korean subsidiaries at 21.9% .
