AI Boom Lifts Korea Inc., Driving Double-Digit Earnings Growth (Yonhap)
SEOUL, Dec. 16 (Korea Bizwire) — South Korean companies’ earnings recorded a 20 percent on-year gain in 2024 on increased exports of semiconductors, government data showed Tuesday.
The combined before-tax net profit of South Korean companies reached 181.9 trillion won (US$123.9 billion) last year, up 20.6 percent from 150.8 trillion won tallied in 2023, according to data compiled by the Ministry of Data and Statistics.
The figure rebounded after declining for two consecutive years, the data showed.
The manufacturing sector, considered the backbone of the South Korean economy, posted a pre-tax net profit of 123.5 trillion won in 2024, up 29.7 trillion won, or 32 percent, compared to a year earlier.
“Corporate earnings were boosted by increased exports of semiconductors, as 2024 was a transitional year for artificial intelligence (AI),” Yoon Hee-cho, an agency official, said.
In line with such a trend, South Korean companies increased their spending on research and development (R&D), with related expenditures rising 21.4 percent on-year to 97 trillion won.
The surveyed firms’ combined sales reached 3,371.1 trillion won this year, up 5.2 percent from the previous year.
The data, meanwhile, showed that 40.3 percent of the polled firms, or 6,009 out of 14,922, held subsidiaries at home and abroad.
By country, China accounted for the largest share of 21.9 percent, followed by the United States with 16.4 percent and Vietnam with 11.8 percent.
A total of 401 companies expanded into new business areas in 2024, with 54.9 percent of them in the manufacturing sector.
(Yonhap)
