Surge in South Korean Corporate Earnings: A Semiconductor Success Story

South Korean companies achieved a 20% earnings increase in 2024, fueled by a boost in semiconductor exports, as reported by government data. This growth spurred a rise in R&D spending, while sales climbed 5.2%. A significant expansion into new markets was also noted, with China as the leading foreign base.

In 2024, South Korean companies experienced a remarkable 20% surge in earnings, largely due to increased exports of semiconductors, as revealed by the Ministry of Data and Statistics on Tuesday.

Their before-tax net profit rose significantly to 181.9 trillion won (US$123.9 billion), a notable improvement from 150.8 trillion won in 2023. This financial boost has prompted firms to enhance investments in research and development, with expenditures escalating by 21.4% to 97 trillion won.

The year also saw company sales hitting 3,371.1 trillion won, reflecting a 5.2% increase from the prior year. A sizable portion of these firms, 40.3%, have subsidiaries internationally, with China, the United States, and Vietnam being the top destinations.

(With inputs from agencies.)