South Korea’s top 10 conglomerates’ 90 listed non-financial subsidiaries posted a total operating profit of 6,162.3 billion won in the third quarter of this year, down 75.63 percent from a year ago. The listed subsidiaries of the 10 conglomerates posted an operating profit ratio of 3.75 percent during the same period whereas the ratio had been 14.28 percent in Q3, 2018.
This has to do with the ongoing trade disputes between the United States and China, sluggish global demands and a manufacturing recession. South Korea’s monthly exports showed a year-on-year decline for 11 months in a row until last month and its GDP growth for this year is estimated at below 2 percent.
Only Hyundai Motor Group recorded a year-on-year increase in operating profit in Q3 this year. Its profit surged from 173.9 billion won to 1,002.3 billion won. Samsung Group’s operating profit dropped 79.19 percent from 14.69 trillion won to 3,056.4 billion won, that of SK Group plummeted 87.41 percent, and that of LG Group plunged 99.14 percent from 1,545.8 billion won to 13.3 billion won.
Hanjin Group’s operating profit dropped 69.62 percent with the profit of Korean Air as its main subsidiary falling 69.99 percent and Jin Air failing to post a profit. Likewise, the profits of Hanwha, Hyundai Heavy Industries, Lotte, Shinsegae and GS Groups fell 49.39 percent, 37.58 percent, 34.99 percent, 18.3 percent and 10.37 percent, respectively.
For the first three quarters of this year, the 90 companies’ operating profit totaled 27.46 trillion won, down 61.38 percent from a year earlier. In addition, their operating profit ratio dropped from 13.92 percent to 5.63 percent during the period. Only Hyundai Motor Group and Hyundai Heavy Industries Group showed an increase in operating profit in the three-quarter period.