Seoul: Free cash flow of South Korea's top 500 listed firms rose sharply over the past year as a positive business cycle in the semiconductor market boosted liquidity at major chipmakers, industry data showed Wednesday.

According to Yonhap News Agency, the data by corporate tracker CEO Score revealed that the 500 listed firms, excluding financial companies, recorded a combined 69.6 trillion won (US$47.3 billion) in free cash flow as of the third quarter, marking a 42 percent increase from 49.1 trillion won a year earlier. Free cash flow refers to the amount of cash a company has left after spending on operations and capital investments, indicating how much cash is available to repay creditors or return to shareholders through dividends and interest payments.

A total of 127 companies experienced an increase in their free cash flow compared to the previous year, while 110 firms reported a decline. By sector, the technology and electronics industry accounted for the largest increase, generating 29.8 trillion won in free cash flow.

Samsung Electronics Co., a major global player in chips and consumer electronics, posted the largest free cash flow in the third quarter at 19 trillion won, up 42.6 percent on-year. Free cash flow of SK hynix Inc., Samsung's chip competitor, more than doubled to 14 trillion won. CEO Score highlighted that "on the back of a strong chip cycle, Samsung Electronics and SK hynix led the sharp increase in free cash flow in the third quarter," adding that it appears the improved cash flow is translating into higher corporate investment.

Free cash flow of Kia Corp. totaled 4.3 trillion won, while Korea Gas Corp. reached 4 trillion won and HD Hyundai Heavy Industries Co. was at 3.5 trillion won. In contrast, four major companies, including Hyundai Engineering and Construction Co., LG Energy Solution and Doosan Enerbility Co., logged free cash flow deficits of 1 trillion won or more.