Last year, Korea's corporations earned an average profit of 54 won per 1,000 won in sales. The pre-tax net income growth rate (year over year) was 20.6%, the third-highest since the statistics began. A boom in manufacturing led by semiconductors drove the improvement in results.
According to the "2024 corporations activity survey preliminary results" released by the National Data Office on the 16th, pre-tax net income for 14,922 corporations (excluding finance and insurance) with 50 or more employees and capital of 300 million won or more as of the end of last year totaled 181.9 trillion won. That was up 20.6% from 2023 (151 trillion won).
According to the National Data Office, last year's pre-tax net income growth rate was the third highest after 2021 and 2022, which saw base effects from COVID-19. An official at the National Data Office said, "A boom in manufacturing, including a 43.9% year-over-year increase in semiconductor exports last year, influenced the improvement in results."
By industry, the concentration in manufacturing was notable. Of the 31.1 trillion won increase in pre-tax net income last year, 95.4% came from manufacturing. In transportation and warehousing, electricity and gas, and business facilities management, pre-tax net income edged up from a year earlier, but domestic demand–related sectors such as wholesale and retail and accommodation and food services declined.
Last year, corporations earned profit equivalent to 54 won per 1,000 won in sales. That was up 7 won from 2023 (47 won). On the same basis, manufacturing and electricity and gas earned 63 won and 64 won per 1,000 won, respectively. By contrast, accommodation and food services earned 12 won, and professional, scientific and technical services earned 14 won, showing large disparities.
Research and development (R&D) investment rose sharply on increased use of artificial intelligence (AI). Corporations' research and development spending reached 97.1 trillion won last year, up 21.4% from a year earlier. In particular, manufacturing R&D spending increased 21.2%. An official at the National Data Office said, "As AI demand surged, the need to introduce equipment and secure highly skilled talent grew."