Korea's Lopsided Net Profit Performance May Give Wrong Impression

SEOUL, KOREA- The share of net profit Korea's three major companies--Samsung Electronics, Hyundai Motor, and Kia Motors--have made last year in total has shot up almost to 30 percent. According to a report by the Bank of Korea on October 27 based on data provided by the National Tax Service as well as data by financial information service company FnGuide, the aggregate net profit reported by the three companies alone in 2012 was 24.8 trillion won.

During the same period, the net profit earned by Korea's all 464,426 companies including Samsung, Hyundai, and Kia was 86.6 trillion won. That means the tree companies accounted for as much as 28.6 percent of total net profit.

Financial analysts said the fact that three corporations take almost 30 percent in total net profit is obviously unhealthy and may give an "illusion" that the economy is doing well while in truth it is not.

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