No Impact from Japan's Export Restrictions... 100 Electronics Companies' Operating Profit Up 196% Over 2 Years

CXO Institute Analysis... Operating Profit from 17 Trillion to 50 Trillion
5 Major Companies' Japanese Subsidiaries at 2.2% Level
SK 15 Locations, LG 14 Locations, Samsung 8 Locations in Order

Despite Japan's export restrictions, domestic electronics companies' performance has rather increased. Japanese companies based in Korea also did not suffer significant damage.

Samsung Electronics Hwaseong Campus view. [Photo by Samsung Electronics]

The Korea CXO Research Institute, specializing in corporate analysis, announced on the 16th that the operating profit of the top 100 domestic electronics companies increased about threefold from 16.9392 trillion won in 2019 to 50.2011 trillion won in 2021. During the same period, sales increased by 29.9%, from 271.346 trillion won to 352.5448 trillion won.

By company, Samsung Electronics' sales rose 29.2% from 154 trillion won to 199 trillion won. SK Hynix increased by 64%, from 25 trillion won to 41 trillion won.

Japanese companies that entered the domestic market also did not suffer much damage. A survey of 33 major Japanese companies that entered Korea with more than 50% ownership showed that operating profit increased by 48.5%, from 517.2 billion won in 2019 to 768.2 billion won. Sales increased by 13.1%, from 10.0746 trillion won to 11.395 trillion won.

Director Oilseon Oh said, "Japan's export restrictions served as an opportunity to strengthen the competitiveness of Korea's materials, parts, and equipment industry more quickly."

The number of Japanese corporations established by the five major groups was 45, accounting for only 2.2% of the total 2,082 overseas affiliates. The order was SK with 15, LG with 14, Samsung with 8, Lotte with 5, and Hyundai Motor with 3.

SK Hynix established the Japanese semiconductor sales corporation 'SK hynix Japan Inc.', and LG Electronics established the electronics sales corporation 'LG Electronics Japan, Inc.'. Hyundai Motor operates the finished car and parts sales corporation in Japan, 'HYUNDAI MOBILITY JAPAN CO., LTD.', Samsung Electronics operates the electronics sales corporation in Japan, 'Samsung Japan Corporation', and Lotte Chemical operates 'LOTTE Chemical Japan Co., Ltd.', which engages in wholesale chemical substances and products in Japan.