SEOUL, KOREA - The aggregate net earnings of overseas affiliates of Korean companies last year were US$13.5 billion. This is down 9.9 percent from the previous year's $14.98 billion. Korea EximBank said on November 2 in a report based on 2013 financial results of 5,738 corporations registered overseas. According to the report, the average sales revenue of each overseas unit was $130.0 million, down slightly from $129.5 million in 2012. But the average net profit fell 18.3 percent to $2.35 million from $2.88 million a year ago. 

 

The report said the operating profit ratio was 3.6 percent, which was almost same level as the previous year's. But the net profit ratio fell 0.4 percentage point to 1.8 percent due to due to the worsening non-operating income.

 

Of particular note was the mining sector that saw its asset value decline precipitously due to a drop in primary goods prices, which brought down their non-operating incomes. But the overseas units' financial soundness indexes such as the debt-to-equity ratio, liquidity ratio, and debt-to-total assets ratio were 161.4 percent, 130.1 percent, and 25.5 percent, respectively, somewhat better than the previous year's 169.9 percent, 127.0 percent, and 25.7 percent.

 

Article provided by The Korea Economic Daily