KOSPI Operating Profit Down 24% Last Year... Significant Impact from Samsung Electronics' Poor Performance

Exchange, KOSPI 2023 Fiscal Year Financial Results Announcement
Consolidated Operating Profit Excluding Samsung Electronics Down 2.8%

Last year, the operating profit of KOSPI-listed companies decreased by approximately 24% year-on-year (consolidated basis). In particular, the sharp decline in Samsung Electronics' operating profit led to the overall deterioration of listed companies' performance.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

According to the "2023 Fiscal Year Settlement Results of Listed Companies on the KOSPI Market" announced by the Korea Exchange on the 3rd, the operating profit of listed companies last year (consolidated basis, excluding financial industry, spin-offs and mergers, and companies with adverse audit opinions, totaling 615 companies) was 123.8332 trillion KRW, down 24.48% from the previous year (163.9821 trillion KRW). Net profit was 80.9074 trillion KRW, down 39.96% from the previous year (134.7622 trillion KRW). During the same period, sales increased by 0.34% to 2,825.1607 trillion KRW.

Excluding Samsung Electronics, which accounts for about 9% of the total consolidated sales of all listed companies, operating profit decreased by 2.77%. Samsung Electronics recorded an operating profit of 6.6 trillion KRW last year, a sharp drop of about 85% year-on-year due to poor performance in the semiconductor sector.

Among the 615 companies analyzed based on consolidated financial statements, 458 companies, or 74.47%, posted net profits, down by 11 companies from 469 companies the previous year. The number of loss-making companies increased from 146 to 157.

By industry, operating profit increased in five sectors including transportation equipment (76.87%) and non-metallic minerals (32.31%), while it decreased in 12 sectors including electrical and electronics (-87.06%) and transportation and warehousing (-61.61%).

The financial industry (41 companies, excluding 5 companies with individual financial statements), which is not included in the overall tally, also saw operating profit decline by 2.23% compared to the previous year. Except for financial holding companies (0.99%), banks (-6.51%), securities (-7.11%), insurance (-6.71%), and others (-7.22%) all experienced deteriorated profitability.

This content was produced with the assistance of AI translation services.