Korea Venture Market
It has been found that KOSDAQ companies’ operating profits plummeted in the first half of this year as the industries, including smart phone component and display material manufacturing, suffered from an ongoing recession. Their difficulties were compounded by the business structure highly dependent on big businesses, delayed investment, and low domestic demand.
According to financial industry sources, approximately 41% of the 963 KOSDAQ companies that have performance that can be compared on an individual basis showed a 50% or higher drop in operating profits or recorded a deficit during the period. Meanwhile, just 22% of them turned into a surplus or more than doubled their business profits.
The profits of a total of 111 firms were more than halved in H1, while 285 companies were in the red or increased their losses. 136 of those companies increased their profits by at least 50% during the same period, and 76 turned black ink.
“They are showing starkly opposite profit trends these days, due to the structure heavily relying upon Samsung Electronics, Hyundai Motor Company, and Kia Motors,” said a stock market analyst, adding, “Those that are failing to diversify their customers are likely to be subject to decreasing stock prices and business showings in spite of the boom in some sectors.”