South Korea’s Corporate Revenue Recovers on AI Chip Surge
Combined earnings for 26,067 companies under mandatory external review—encompassing 12,962 manufacturing entities and 13,105 service-sector firms, with financial institutions excluded—climbed 2.1 percent quarter-over-quarter, reversing a 0.7 percent contraction recorded in the April-June period, the BOK reported.
The turnaround stems directly from escalating AI hardware investments worldwide, which triggered explosive demand for Korean-made chips.
Manufacturing revenue jumped 2.9 percent in the three-month span, a sharp reversal from the 1.7 percent decline posted in the preceding quarter.
Service and non-production companies saw income rise 1.2 percent—outpacing the 0.3 percent gain registered during the second quarter.
Profit margins strengthened across the board. Operating profit as a percentage of total revenue reached 6.1 percent in the third quarter, up from 5.8 percent during the same period in 2024.
For production firms, this profitability metric advanced from 6.1 percent to 7.1 percent year-over-year, while non-manufacturing businesses experienced an even steeper climb—from 5.9 percent to 9.1 percent.
Corporate balance sheets also showed improvement, with the aggregate debt-to-equity ratio falling to 88.8 percent in the third quarter from 89.8 percent three months earlier.
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