Korean economy in ‘semiconductor illusion’… De-growth in 5 years except Samsung & SK
Cho Eun-ae | eunae@ | 2018-05-03 13:43:17
It has been reported that the semiconductor economy is becoming more and more intense. Samsung Electronics and SK Hynix (semiconductors) have accounted for half of total operating profit last year.
The Korea Economic Research Institute analyzed the financial indicators for 2012 and 2017 of 439 listed companies, showing that Samsung Electronics and SK Hynix accounted for 17.7% of total sales and 50.7% of operating profit last year.
The Korean economy has de-grown in the last five years except for the two companies in particular. The total surveyed companies` sales growth rate was 1.9%, but it fell 2.2% except for the two companies.
Samsung Electronics and SK Hynix have been more heavily devoted to operating profit. The operating profit growth rate of the entire company is 73.7% in five years, but shrunk to 27.3% excluding Samsung Electronics and SK Hynix.
Meanwhile, Samsung Electronics and SK Hynix account for half of the total operating profit. The remaining firms accounted for less than the sum of the two companies. The operating profit of Samsung Electronics and SK Hynix stood at KRW 17.9 trillion in 2012, accounting for 32.7% of the total, however, rose to KRW 48.2 trillion (50.7%) in five years. Excluding the two companies, 437 companies` operating profits increased slightly from KRW 36.8 trillion to KRW 46.8 trillion, but their share dropped sharply from 67.3 % to 49.3 %.
On the other hand, sales of electrical and electronic equipment, which account for a large portion of sales, jumped to 20.0% due to semiconductor sagging. Sales in the retail industry also increased in five years, but only a mere 0.2%. Chemicals (-9.7%), steel (-8.3%), transport equipment (-8.2%) and electric gas (-6.2%) all shrunk. The transportation equipment and distribution businesses posted a 55.8% and 10.0% drop in operating profit, respectively, and profitability deteriorated.
Despite the recent economic indicators are improving, some say that it is due to the "super cycle" of the semiconductor market.
Chu Kwang-ho, chief of the Korea Economic Research Institute, stated, "The performance of the Korean companies last year was due to the optical ill effects caused by the traction of the electronics and some large companies."
By Cho Eun-ae eunae@dt.co.kr
[ copyright ⓒ The Digitaltimes ]
The Korea Economic Research Institute analyzed the financial indicators for 2012 and 2017 of 439 listed companies, showing that Samsung Electronics and SK Hynix accounted for 17.7% of total sales and 50.7% of operating profit last year.
The Korean economy has de-grown in the last five years except for the two companies in particular. The total surveyed companies` sales growth rate was 1.9%, but it fell 2.2% except for the two companies.
Samsung Electronics and SK Hynix have been more heavily devoted to operating profit. The operating profit growth rate of the entire company is 73.7% in five years, but shrunk to 27.3% excluding Samsung Electronics and SK Hynix.
Meanwhile, Samsung Electronics and SK Hynix account for half of the total operating profit. The remaining firms accounted for less than the sum of the two companies. The operating profit of Samsung Electronics and SK Hynix stood at KRW 17.9 trillion in 2012, accounting for 32.7% of the total, however, rose to KRW 48.2 trillion (50.7%) in five years. Excluding the two companies, 437 companies` operating profits increased slightly from KRW 36.8 trillion to KRW 46.8 trillion, but their share dropped sharply from 67.3 % to 49.3 %.
On the other hand, sales of electrical and electronic equipment, which account for a large portion of sales, jumped to 20.0% due to semiconductor sagging. Sales in the retail industry also increased in five years, but only a mere 0.2%. Chemicals (-9.7%), steel (-8.3%), transport equipment (-8.2%) and electric gas (-6.2%) all shrunk. The transportation equipment and distribution businesses posted a 55.8% and 10.0% drop in operating profit, respectively, and profitability deteriorated.
Despite the recent economic indicators are improving, some say that it is due to the "super cycle" of the semiconductor market.
Chu Kwang-ho, chief of the Korea Economic Research Institute, stated, "The performance of the Korean companies last year was due to the optical ill effects caused by the traction of the electronics and some large companies."
By Cho Eun-ae eunae@dt.co.kr