Seoul: South Korean companies experienced an improvement in sales and profitability in 2024, as revealed by recent data from the central bank. The growth was supported by robust performances in the semiconductor and transportation industries, alongside a favorable low base effect.
According to Yonhap News Agency, corporate sales in South Korea increased by 4.2 percent compared to the previous year, overturning a 2 percent decline witnessed in 2023. The data, sourced from the Bank of Korea (BOK), encompasses a review of 34,167 non-financial firms subject to external audits.
The manufacturing sector contributed significantly to this growth, with sales climbing by 5.2 percent in 2024, marking a recovery from a 2.7 percent contraction in 2023. This improvement was largely driven by advances in electronics, visuals, and communication equipment. Meanwhile, the non-manufacturing sector saw a 3 percent rise in sales, recovering from a 1.2 percent decline the previous year, with transportation, warehousing, wholesale, and retail industries leading the charge.
South Korean firms also experienced a rise in combined operating profits, which increased by 5.4 percent, up from a 3.8 percent growth rate in 2023. The average debt-to-equity ratio of these firms slightly decreased to 101.9 percent from 102 percent the previous year, indicating a stable financial structure.