In the First Half, South Korea's Operating Profit Decline Was 16 Times That of the US... Samsung's Profit Evaporated by 95% While Apple's Dropped by 10%

Hankyung Association Compares Top 100 Companies by Market Cap... IT and Energy Performance Decline

This year’s first half saw the operating profit decline of Korea’s top 100 companies compared to the same period last year approximately 16 times greater than that of the top 100 U.S. companies. Samsung Electronics’ operating profit decreased by 95.4%, while Apple’s dropped by 10%. The poor performance of IT companies such as Samsung Electronics and energy firms is believed to have influenced this outcome.

The Korea Economic Association (formerly the Federation of Korean Industries) announced on the 25th the comparative results of the first half management performance of the top 100 non-financial companies by market capitalization listed on the New York Stock Exchange in the U.S. and the Korea Exchange.

Samsung Electronics Seocho Building. Photo by Jinhyung Kang aymsdream@

The survey results showed that the operating profit of the top 100 U.S. companies decreased by 3.9%, from $664.3 billion (approximately KRW 887.8 trillion) in the first half of last year to $638.5 billion (approximately KRW 853.3 trillion) this year. During the same period, the operating profit of the top 100 Korean companies plummeted by 63.4%, from $67.8 billion (approximately KRW 90.6 trillion) to $24.8 billion (approximately KRW 33.1 trillion). The decline in Korea was 15.75 times that of the U.S.

Korea also lagged behind in sales and net income. The sales of the top 100 U.S. companies increased by 2.4%, from $3.7828 trillion (approximately KRW 5,055.7 trillion) to $3.872 trillion (approximately KRW 5,174.9 trillion) in the first half of this year. The sales of the top 100 Korean companies rose by 0.3%, from $744.4 billion (approximately KRW 994.9 trillion) to $746.3 billion (approximately KRW 997.4 trillion). Net income also increased by 3.2% for the top 100 U.S. companies but decreased by 68% for the top 100 Korean companies.

The prosecution has launched an investigation into Apple on suspicion of overcharging thousands of billions of won in in-app payment fees from domestic application developers. The photo shows the Apple Store Gangnam in Seoul on the 18th. Photo by Jinhyung Kang aymsdream@

The Korea Economic Association explained that the performance of semiconductor and other IT companies, as well as energy firms, declined. In the first half of this year, the total sales, operating profit, and net income of U.S. IT companies decreased by 0.3%, 4.8%, and 4.4%, respectively, compared to the same period last year. In Korea, these figures plunged by 21.5%, 113.0%, and 109.4%, respectively. The decline in sales, operating profit, and net income in the energy sector was also greater in Korea. While the U.S. saw decreases of 17.8%, 22.3%, and 24.2%, Korea experienced a 0.4% increase in sales but an 82% decrease in operating profit and a 100.6% decrease in net income.

The fortunes of the top market capitalization companies in both countries, Apple and Samsung Electronics, also diverged. Apple’s sales, operating profit, and net income in the first half of this year decreased by 4.2%, 10.0%, and 9.2%, respectively, compared to the same period last year. Samsung Electronics saw declines of 21.5%, 95.4%, and 86.9%, respectively. Samsung Electronics’ operating profit decline was about 10 times that of Apple. While Meta Platforms (Meta) saw a 9.8% increase in operating profit in the first half, Kakao’s operating profit dropped by 44.9%. Blizzard’s operating profit rose by 64.7%, whereas Krafton’s decreased by 15.2%.