Performance of Leading Companies in Korea, the US, and Japan... Korea Stands Out in Growth and Stability

A recent survey found that South Korean companies outperform major firms in the United States and Japan in terms of growth and stability.

Korea Employers Federation

According to the "Management Performance Analysis of Leading Companies by Industry in Korea, the US, and Japan" report released by the Korea Employers Federation (KEF) on December 28, sales of South Korean companies in the first to third quarters of this year increased by 14% compared to last year. This is 1.8 times higher than the US (7.8%) and 10 times higher than Japan (1.4%).

The average debt ratio was lowest in Korea at 86.8%, followed by Japan at 146.7% and the US at 202.5%. The average operating margin was highest in the US at 17.9%, with Korea at 14.7% and Japan at 5.5%.

In Korea, the defense industry (42.3%) and semiconductors (22.5%) saw sharp increases in sales, while growth in steel (-3.4%) and petroleum refining (0.6%) was sluggish. In the US, semiconductors (31.5%) and internet services (17.7%) showed strong growth, while in Japan, the defense industry (10.5%) and automobiles (3.1%) grew steadily.

In terms of operating margin, the pharmaceutical and biotechnology sectors had the highest figures in all three countries. Korea recorded high operating margins in pharmaceuticals and biotechnology (32.1%) and semiconductors (26.7%), but low profitability in petroleum refining (0.4%) and steel (2.2%). In the US, pharmaceuticals and biotechnology (38.0%) and internet services (36.9%) posted the highest margins, while in Japan, pharmaceuticals and biotechnology (13.9%) and the defense industry (6.9%) led the way.

In this report, the KEF selected the top two companies from each country in seven industries-semiconductors, steel, automobiles, defense, pharmaceuticals, biotechnology, internet services, and petroleum refining-analyzing a total of 38 companies. However, in Japan, the semiconductor and internet service sectors were excluded from the analysis due to the lack of suitable companies.

Ha Sangwoo, Head of Economic Research at the KEF, stated, "This year, our leading companies performed well, especially in semiconductors, the defense industry, and pharmaceuticals and biotechnology. However, with the impact of US tariff increases set to intensify next year and the global economic slowdown likely to pose greater challenges, bold policy support such as tax reform and regulatory easing will be essential."