S Korea’s corporate net profit drops 37.1pc in 2019

SEOUL (XINHUA) – South Korea’s corporate net profit dropped in double digits last year, marking the fastest fall since the 2008 global financial crisis, statistical office data showed yesterday.

Corporate net income before tax totalled KRW102 trillion (USD93.3 billion) in 2019, down 37.1 per cent from the previous year, according to Statistics Korea.

It was based on the assessment on earnings of 13,255 local companies that have at least 50 regular employees and capital of over KRW300 million. It excluded earnings from finance and insurance companies.

The double-digit decline was the highest since 2008 when the corporate net profit plunged 43.6 per cent amid the global financial crisis.

Net profit among manufacturers tumbled 48.3 per cent in 2019, while net income among real estate companies rose 13.4 per cent.

Corporate revenue totalled KRW2,440 trillion in 2019, down 0.6 per cent from the prior year.

It was the highest reduction in four years since 2015.

The average revenue per company slipped 1.3 per cent to KRW189.3 billion last year.