Korean corporate profits rise by 20.6% in 2024 thanks to chip exports
SEOUL, December 20 (WAM) – South Korean companies’ profits recorded a 20% year-on-year increase in 2024 thanks to an increase in semiconductor exports, according to government data released today, Saturday.
South Korean companies’ net profits before taxes totaled 181.9 trillion won (123.9 billion US dollars) last year, up 20.6% from 150.8 trillion won in 2023, according to data compiled by the Ministry of Data and Statistics.
The data showed that the number rose after declining for two consecutive years.
The manufacturing sector, which is the backbone of the South Korean economy, recorded net profits before taxes amounting to 123.5 trillion won in 2024, an increase of 29.7 trillion won, or 32%, compared to the previous year.
A ministry official said that company profits rose thanks to the increase in semiconductor exports, as 2024 was a transitional year for artificial intelligence.
In line with this trend, South Korean companies have increased their spending on research and development, with related expenses rising 21.4% year-on-year to 97 trillion won.
The total sales of the companies surveyed reached 3,371.1 trillion won last year, up 5.2 percent from the previous year.
On the other hand, the data showed that 40.3% of the companies surveyed, or 6,009 companies out of 14,922 companies, own subsidiaries at home and abroad.
By country, China had the largest share at 21.9%, followed by the United States at 16.4% and Vietnam at 11.8%.
401 companies expanded into new business areas in 2024, including 54.9% in the manufacturing sector.
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