Strong Chip Demand Drives Record Quarterly Operating Profits for South Korean Listed Firms

Deep News05-19

Data released Tuesday by the Korea Exchange reveals that the total profits of South Korean listed companies reached a historic high in the first quarter of this year, driven by robust demand for semiconductors fueled by the artificial intelligence (AI) boom. According to compiled data, the combined operating profit of 639 listed companies on the KOSPI index surged 175% year-on-year from January to March, reaching 156.3 trillion won (approximately 1.039 trillion U.S. dollars). Total sales for these companies grew 19.4% year-on-year to 927.5 trillion won, while their aggregate net profit soared 117.8% to 141 trillion won. However, the data indicates that the sharp profit increase was primarily led by two companies, Samsung Electronics and SK Hynix, which benefited significantly from the flourishing AI sector. Excluding Samsung Electronics and SK Hynix, the sales of listed companies increased by 9.07%, with operating profit and net profit rising by 44.4% and 55.7%, respectively. Among all listed companies, 590 firms, accounting for 81.16%, reported profits. By industry, electrical and electronics companies as well as automakers demonstrated solid performance.

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