SEOUL KOREA - The profitability of Korean businesses fell to the lowest level since the 2008 global financial crisis. Their corporate sales growth has also slowed sharply since 2010.As the Korean economy dips into a slowdown, corporate performance has also deteriorated.
According to a report by the National Statistical Office on November 25, the pre-tax net profit of domestic businesses (excluding financial and insurance companies) stood at 39.2 won per 1,000 won of sales, down by 8.0 won from a year ago.This is the lowest level since 2008 (32.5 won) when the global financial crisis occurred.
The pre-tax net profit of domestic businesses stood at 63.0 won in 2006 when the statisticaloffice started its survey. After peaking at 69.2 won in 2007, it plunged to 32.5 won in 2008 and recovered to 53.3 won in 2009 and 62.3 won in 2010. Thereafter, it fell again to 51.7 won in 2011, 47.2 won in 2012, and 39.2 won in 2013.
Article provided by The Korea Economic Daily
