The sum of profits of the top ten Korean companies is not as good as TSMC, and Samsung's performance is key
According to financial information provider FnGuide, the top 10 companies in South Korea's domestic stock market last year had a total operating profit of 35.7 trillion won (26.8 billion US dollars), a significant decrease of 54.9% compared to the combined operating profit of 79.22 trillion won in 2022.In contrast, TSMC's operating profit last year also reached $29.5 billion, exceeding the combined profits of the top 10 companies in the South Korean stock market. Driven by the recovery of the semiconductor industry, especially the demand for artificial intelligence (AI), TSMC's operating profit is expected to increase by 19% this year.
In addition, Toyota's operating profit for the fiscal year ending March 2023 is expected to be approximately 4.9 trillion yen, equivalent to approximately 44 trillion Korean won (33.03 billion US dollars), significantly exceeding the combined profits of the top 10 companies in the Korean stock market.
The significant decline in the semiconductor industry has had a substantial impact on the South Korean economy, leading to a significant decline in operating profits, according to reports. Last year, Samsung Electronics' operating profit decreased significantly by 84.8% compared to the previous year. Although the profitability of the automotive and biotechnology sectors has improved, companies such as Hyundai Motor, Kia, and Samsung Bioproducts have shown positive trends. However, compared to the semiconductor sector, their absolute profit scale is relatively small and insufficient to drive the market.
Experts emphasize that Samsung Electronics accounts for 20% of the market value of the Korean KOSPI index, and improving its performance is crucial for boosting investor sentiment. It is expected that Samsung Electronics' operating profit this year will increase five times compared to the previous year, reaching 32.5 trillion Korean won. After turning losses into profits in the first quarter of this year, Samsung needs to strengthen the profitability of its struggling non storage business.
The significant decline in the semiconductor industry has had a substantial impact on the South Korean economy, leading to a significant decline in operating profits, according to reports. Last year, Samsung Electronics' operating profit decreased significantly by 84.8% compared to the previous year. Although the profitability of the automotive and biotechnology sectors has improved, companies such as Hyundai Motor, Kia, and Samsung Bioproducts have shown positive trends. However, compared to the semiconductor sector, their absolute profit scale is relatively small and insufficient to drive the market.
Experts emphasize that Samsung Electronics accounts for 20% of the market value of the Korean KOSPI index, and improving its performance is crucial for boosting investor sentiment. It is expected that Samsung Electronics' operating profit this year will increase five times compared to the previous year, reaching 32.5 trillion Korean won. After turning losses into profits in the first quarter of this year, Samsung needs to strengthen the profitability of its struggling non storage business.