South Korean companies' earnings rose 20 percent year-on-year in 2024, driven by increased semiconductor exports. Government data showed combined before-tax net profits reaching 181.9 trillion won, with the manufacturing sector leading the rebound. The year marked a transitional phase for artificial intelligence, boosting chip demand.
South Korean companies' combined before-tax net profit reached 181.9 trillion won ($123.9 billion) in 2024, a 20.6 percent increase from 150.8 trillion won in 2023, according to data from the Ministry of Data and Statistics. This marked a rebound after two consecutive years of decline. The manufacturing sector, a cornerstone of the Korean economy, reported 123.5 trillion won in pre-tax net profit, up 29.7 trillion won or 32 percent from the previous year.
"Corporate earnings were boosted by increased exports of semiconductors, as 2024 was a transitional year for artificial intelligence (AI)," said Yoon Hee-cho, an agency official. Aligning with this trend, companies raised research and development (R&D) spending by 21.4 percent to 97 trillion won. The surveyed firms' total sales hit 3,371.1 trillion won, a 5.2 percent rise from the prior year.
Meanwhile, 40.3 percent of the 14,922 polled companies, or 6,009, operated subsidiaries domestically and abroad. By country, China held the largest share at 21.9 percent, followed by the United States at 16.4 percent and Vietnam at 11.8 percent. A total of 401 companies ventured into new business areas, with 54.9 percent in manufacturing.
The data highlights how AI-driven semiconductor exports propelled corporate recovery, positioning South Korea strongly in the global AI race.
