Seoul: The combined net profit of listed South Korean companies experienced a significant increase of more than 25 percent during the first nine months of the year, largely driven by the performance of the nation's two leading chipmakers, according to data released by the bourse operator on Tuesday.
According to Yonhap News Agency, the consolidated net profit for 639 companies listed on the main KOSPI bourse reached 152.3 trillion won (approximately US$103.9 billion) from January to September. This marks a 25.8 percent increase, or 31.2 trillion won, compared to the same period last year. The data provided by the Korea Exchange (KRX) excludes 42 listed financial firms, including banks, brokerages, and insurance companies.
Sales of these companies rose by 5.4 percent year-on-year, totaling 2.3 quadrillion won, while operating profit increased by 15 percent to 179.6 trillion won. Out of the 639 firms, 502 reported a net profit, whereas 13 experienced a net loss.
When excluding Samsung Electronics Co., a major player in the market, the remaining companies saw their net and operating profits increase by 34.3 percent and 20.1 percent on-year, respectively. Additionally, the overall debt ratio of the firms decreased by 2 percentage points, reaching 109.5 percent by the end of 2024.
An official from the KRX credited the local market's strength to the robust performance of the semiconductor sector, particularly highlighting the contributions of Samsung Electronics Co. and SK hynix Inc. In contrast, the 42 listed financial firms recorded a net profit and operating profit increase of 11.3 percent and 3 percent, respectively. Brokerage firms, in particular, enjoyed a notable performance, with net profits climbing 36 percent year-on-year.
On the smaller KOSDAQ bourse, the net profit of 1,217 listed companies rose by 16.6 percent to 5.3 trillion won over the nine-month period. Sales for these companies increased by 6.1 percent to 213.3 trillion won, while operating profit advanced 9.7 percent to 8.8 trillion won. Within this group, 678 firms were profitable, while 539 were not.
Sector-wise, the service sector achieved impressive growth, with net profit surging by 505.7 percent. The chemicals and IT services sectors also reported significant gains, with net profits increasing by 290.9 percent and 54.8 percent, respectively.
Analysts anticipate an improvement in next year's gross domestic product (GDP) growth rate, supported by the semiconductor boom, strong performances in the automotive and shipbuilding sectors, and increased government spending. Jeong Yong-taek, an analyst from IBK Securities Co., emphasized the importance of policy efforts to support small and medium-sized companies facing ongoing business challenges, funding constraints, and heightened default risks.