SEOUL — Operating profits for South Korea's top 500 companies more than doubled in the second quarter of the year, propelled by a robust semiconductor industry, according to data released by corporate tracker CEO Score.
According to Yonhap News Agency, the data reveals that the combined net profits of 334 of these companies reached 59.4 trillion won (US$43.6 billion) for the period from April to June, marking a 107.1 percent increase from the previous year. Total sales also rose by 7 percent year-on-year to 779.5 trillion won. This surge in profitability was largely driven by leading chipmakers Samsung Electronics Co. and SK hynix Inc., which have benefitted from increased global demand for AI semiconductors, such as high-bandwidth memory (HBM) chips used by tech giants like Nvidia Corp.
Samsung Electronics posted an operating profit of 10.4 trillion won, significantly up from 668.5 billion won the previous year, maintaining its position as the company with the highest quarterly operating profit in the nation. SK hynix also saw a dramatic turnaround, reporting an operating profit of 5.5 trillion won compared to an operating loss of 2.9 trillion won a year earlier.
However, not all sectors fared well. The chemical sector, for example, faced challenges, with Lotte Chemical Co. and Hanwha Solutions Corp. reporting significant operating losses. SK On Co., a battery manufacturer under SK Group, recorded the largest operating loss amid declining global demand for electric vehicles.