In the second quarter of this year, South Korean companies achieved a record operating profit margin, driven by growth in the semiconductor and petrochemical sectors.
According to the Bank of Korea's '2026 Q2 Corporate Management Analysis Results' released on September 9, a sample survey of 4,260 corporations among 26,509 external audit-targeted companies showed that the operating profit margin rose to 16.9%, an increase of 11.8 percentage points compared to the same period last year. This marks the highest figure since the first quarter of 2015.
By sector, the operating profit margin for manufacturing soared from 5.1% in the second quarter of last year to 24.0%, nearly a fivefold increase. Excluding Samsung Electronics and SK Hynix, the margin was analyzed at 7.2%. During the same period, the machinery and electrical/electronics sectors surged from 7.4% to 43.0%, while the petrochemical sector rose from 2.5% to 9.5%.
The improvement in the operating profit margin for the machinery and electrical/electronics sectors is attributed to the semiconductor industry's characteristics, where the increase in operating profit outpaces revenue growth due to high fixed costs, resulting in an operating leverage effect. The petrochemical sector benefited from increased refining margins due to the ongoing conflict in the Middle East.
In contrast, the operating profit margin for non-manufacturing sectors fell slightly from 5.1% to 5.0%. Within the service industry, the transportation sector saw a decline from 7.0% to 4.8% due to rising costs from high oil prices and detours.
There was a significant disparity in operating profit margins based on company size. Large corporations saw their operating profit margin rise from 5.1% to 19.1%, a 14 percentage point increase, while small and medium-sized enterprises only increased from 5.0% to 5.3%, a mere 0.3 percentage point rise.
The overall revenue growth rate for all companies was reported at 26.7%, up 13.2 percentage points from the previous quarter's 13.5%.
By sector, manufacturing revenue growth increased from 21.1% in the first quarter to 39.6%. Excluding Samsung Electronics and SK Hynix, the revenue growth rate was around 14%.
The revenue growth rate for machinery and electrical/electronics rose from 52.1% to 88.5%, continuing the trend of increased sales due to favorable semiconductor market conditions. Notably, the growth rate for electronic, video, and communication equipment jumped from 75.7% to 119.7%.
Non-manufacturing revenue growth also improved, rising from 3.7% in the previous quarter to 9.7%, driven by increases in the transportation sector (8.1% to 13.6%) and retail (7.1% to 13.7%).
The construction sector saw a slight increase from -4.0% to 0.3%, marking a return to revenue growth for the first time in eight quarters, aided by increased construction volume for semiconductor factories.
By company size, large corporations increased from 16.0% to 30.5%, while small and medium-sized enterprises rose from 2.4% to 10.2%.
In terms of financial stability, the overall debt ratio for companies in the second quarter decreased from 87.0% to 84.5%, and reliance on borrowed funds fell from 23.9% to 22.8% compared to the previous quarter.
By sector, the debt ratio for manufacturing dropped from 68.0% to 65.7%, while non-manufacturing decreased from 122.9% to 120.2%. Among company sizes, large corporations saw their debt ratio decline from 83.8% to 79.8%, whereas small and medium-sized enterprises increased from 103.0% to 112.1%.
As the profitability and growth of companies continue to improve in the first half of the year, attention is focused on whether this trend will persist in the second half. Lee Mi-joo, head of the Bank of Korea's corporate statistics team, stated, "In the second half, the semiconductor market is expected to remain strong due to robust demand for artificial intelligence (AI) investments. If this trend continues until the end of the third quarter, domestic demand is also expected to show signs of recovery, leading to overall improvements primarily centered around semiconductor manufacturing."
She added, "However, given the ongoing situation in the Middle East and uncertainties surrounding U.S. tariff policies, the trajectory will need to be monitored based on corporate management conditions."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.