3Q KOSPI Listed Companies Operating Profit 53 Trillion Won... 50% Increase YoY

Most Industries Show Growth Except Construction and Medical Precision

[Asia Economy Reporter Minwoo Lee] Operating profits of KOSPI-listed companies on a consolidated basis in the third quarter of this year increased by over 13% compared to the previous quarter and by more than 50% compared to the same period last year. All industries except construction, machinery, textiles and apparel, medical precision, and electric and gas utilities continued their upward trend.

On the 17th, the Korea Exchange analyzed the consolidated results of 586 companies listed on the KOSPI with December fiscal year-end. Sales were recorded at KRW 581.5908 trillion, and operating profit at KRW 53.1155 trillion. Compared to the same period last year, sales increased by 18.90%, and operating profit rose by 50.08%. Net profit was recorded at KRW 44.3778 trillion, up 81.45% during the same period.

For the cumulative first to third quarters, consolidated sales were KRW 946.1157 trillion, and operating profit was KRW 80.9076 trillion. These represent increases of 15.80% and 62.87%, respectively, compared to the same period last year. Even excluding Samsung Electronics, which accounted for 12.30% of total consolidated sales, both sales and operating profit increased by 18.34% and 114.53%, respectively. Net profit surged by an astonishing 248.87% during this period. Compared to the previous quarter, consolidated sales, operating profit, and net profit all increased by 6.11%, 13.38%, and 23.19%, respectively.

Most industries showed an increase in operating profit compared to the same period last year. The transportation and warehousing sector saw the largest increase, with operating profit reaching KRW 3.2722 trillion, up 552.01% year-on-year. This was followed by steel and metals (309.03%), transportation equipment (276.49%), and paper and wood (78.02%). During the same period, medical precision (-10.52%), construction (-9.40%), textiles and apparel (-6.99%), machinery (-3.58%), and food and beverages (-0.45%) experienced declines in operating profit.

Meanwhile, these figures exclude 84 companies out of a total of 670 December fiscal year-end corporations that submitted consolidated financial statements for the third quarter this year. The excluded companies include those with fiscal year changes, submission deferrals, 9 newly listed companies, 24 companies involved in splits or mergers, 10 companies with adverse audit opinions, and 41 financial companies.

On a cumulative basis for the first to third quarters, the consolidated operating profit of 41 financial sector companies was KRW 38.5262 trillion, and net profit was KRW 29.8873 trillion, representing increases of 46.50% and 49.58%, respectively, compared to the same period last year. Performance improved across the financial sector, including securities, banking, and insurance. In particular, the securities industry saw operating profit and net profit increase by 78.02% and 80.18%, respectively, compared to the first to third quarters of last year. However, compared to the second quarter, the overall financial sector's operating profit decreased by 3.90%.

Among the 586 companies surveyed, 65 companies turned their quarterly net profit positive on a consolidated basis compared to the same period last year. Hyundai Motor Company recorded the largest increase in net profit, rising by KRW 1.6757 trillion. Conversely, 55 companies shifted to quarterly net losses during the same period. Korea Electric Power Corporation (KEPCO) experienced the largest decline. While it recorded an operating profit of KRW 1.2513 trillion in the third quarter of last year, it posted an operating loss of KRW 1.0259 trillion in the third quarter of this year. The decrease amounted to a staggering KRW 2.2772 trillion.