One in Four Listed Companies Suffered Deficits in Q3

The accumulated net profit of Korea’s listed firms fell sharply in Q3, in spite of the hikes of their sales and operating profits. Around 25 percent of listed firms recorded accumulated deficits. On the contrary, the weight of Samsung Electronics in net profit reached 40.5 percent of the total profits, which further increased compared to the same period of last year.  According to data unveiled by the Korea Exchange (KRX) on December 3, the combined net profit of 614 listed companies on the KOSPI in Q3 amounted to 38.39 trillion won (US$35.90 billion) based on a consolidated basis, marking a 12.46 percent increase from 43.85 trillion won (US$41.00) in the same period last year.

However, their sales and operating income in Q3 reached 838.57 trillion won (US$784.22 billion) and 49.16 trillion (US$45.97), up 0.56 percent and 5.21 percent, respectively, from a year ago. It means the net profit decreased amid hikes of sales and operating income.

Consolidated financial statements bring together all assets, liabilities, and operating accounts of a parent company and its subsidiaries. The firms close their books on December 31. 

In particular, the number of companies, which were converted to or keeping red ink, reached 152 among the 614 listed firms, which means that one in four companies suffered losses. 

The KRX said, “Despite a sales increase in the electric and electronics sector, total market sales just inched up compared to last year because of the delayed recovery of the steel, petrochemicals, and shipbuilding sectors.”