Listed firms' profits soar in H1, driven by AI-led semiconductor boom

In the first half of 2023, South Korean listed companies experienced a surge in profits, driven by the global demand for artificial intelligence (AI) semiconductors. According to data released by the Korea Exchange, the combined operating profit of 720 KOSPI-listed firms increased by an impressive 348.5% year-on-year to 275 trillion won ($195.2 billion). This surge in profits was accompanied by a 34.5% rise in total sales to 1,070 trillion won, and a 330% increase in net profit to 291.5 trillion won.

When these figures are adjusted to exclude the strong performances of Samsung Electronics Co. and SK hynix Inc., whose earnings were bolstered by the global AI investment boom, the remaining listed firms still managed a 6.08% increase in combined sales. Their operating profits saw an 11.78% growth, while net profits expanded by 25.44%.

Out of the total 720 firms, 581, or 80.69%, reported a profit during this period. The electric and electronic industries, as well as precision machinery manufacturers, demonstrated particularly robust performance.