Operating Profit of South Korea's Top 500 Firms Soars 66% in 2024
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Synopsis
In 2024, the operating profit of South Korea's top 500 companies soared by 66%, driven by a resurgence in the global semiconductor market. The total profit reached 183.7 trillion won, with notable contributions from SK hynix and Samsung Electronics amid strong AI-related demand. However, business sentiment remains pessimistic as indicated by a recent survey.
Key Takeaways
- Operating profit increased by 66% in 2024.
- Total profit reached 183.7 trillion won.
- Strong growth driven by semiconductor market rebound.
- SK hynix and Samsung Electronics were key contributors.
- Business sentiment remains pessimistic for April 2024.
Seoul, March 26 (NationPress) The combined operating profit of South Korea's leading 500 companies experienced a remarkable surge of 66 percent year-on-year in 2024, primarily fueled by a recovery in the global semiconductor market, according to a report released on Wednesday.
As per the findings from corporate analytics firm CEO Score, the total operating profit of these top 500 enterprises reached 183.7 trillion won (approximately $125.3 billion) in 2024, a significant increase from 110.6 trillion won in the previous year, as reported by Yonhap news agency.
The overall annual sales of these companies grew by 5.8 percent, rising to 2,523 trillion won from 2,384 trillion won in 2023. Moreover, the net profit saw an impressive jump of 74.5 percent during the same period.
The substantial increase in operating profit was largely attributed to the stellar performance of chipmakers SK hynix Inc. and Samsung Electronics Co., driven by robust demand for artificial intelligence (AI) memory products.
SK hynix experienced the most significant growth, achieving an operating profit of 23.5 trillion won after recovering from a loss of 7.7 trillion won in 2023, amounting to a remarkable gain of over 31.2 trillion won.
The company capitalized on the soaring demand for high bandwidth memory (HBM), which is crucial for AI semiconductor production.
Samsung Electronics recorded the second-largest profit increase, with its operating profit climbing by 26.2 trillion won due to improved market conditions, as reported by CEO Score.
Other key contributors to the overall operating profit growth included Korea Electric Power Corp., whose profit rose by 12.9 trillion won, followed by HMM Co. with a 2.9 trillion won increase, LG Display Co. with 1.9 trillion won, and Korea Gas Corp. with 1.5 trillion won.
Despite these positive figures, South Korea's business sentiment remains pessimistic for April, as indicated by a poll conducted on Wednesday amid escalating uncertainties related to global trade.
The business survey index (BSI) for the country’s top 600 companies by sales stood at 88 for next month, according to the monthly survey by the Federation of Korean Industries (FKI).
A reading below 100 indicates that pessimists outnumber optimists, whereas a figure above this benchmark signifies the opposite. The index has been below 100 for 37 consecutive months since April 2022.
The BSI for the manufacturing sector was recorded at 92 for April, while the index for non-manufacturing stood at 84.2.
