Korean companies face a slowdown in growth despite improved profits in 2025
SEOUL, June 13, 2017 (WAM) – The Central Bank of Korea reported today, Saturday, that Korean companies recorded a slowdown in sales growth in 2025 as a result of the global surplus in petrochemical production, but their profitability improved thanks to the rise in semiconductor prices.
According to Central Bank data, the total sales of 34,456 companies subject to external audit increased by 2.5% in 2025 compared to the previous year, declining from a growth rate of 4.2% in 2024.
The sales growth rate in the manufacturing sector declined to 3.2% compared to 5.2% a year ago, affected by the weak performance of the oil refining and chemicals sectors, amid an abundance of global supply and low profit margins.
Sales growth in non-industrial companies decreased to 1.6% from 3% during the same period, affected by the decline in the performance of automobile companies as a result of US customs duties.
On the other hand, profitability indicators improved last year, and the operating profit margin of the companies surveyed reached 6.2% last year, up from 5.4% in the previous year, recording the highest annual operating profit margin since 2021, when it recorded 6.85%.
The operating profit margin in the manufacturing sector rose to 6.9% from 5.5%, driven by the rise in global semiconductor prices amid strong demand related to artificial intelligence. Financial stability indicators also improved, and the debt-to-equity ratio decreased to 98.3% last year, compared to 103.4% in the previous year, recording a decline below the 100% level for the first time since 2020.
Central Bank of Korea data also showed a decrease in reliance on borrowing to 27.3% from 28.4% during the aforementioned period.
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