Semiconductor giants drove up the earnings statistics for domestic companies.
According to the Bank of Korea’s 2026 second-quarter corporate management analysis released on the 9th, the manufacturing operating profit margin stood at 24.0%. This is the highest level since the statistics began being compiled in the first quarter of 2015. The operating profit margin means the share of profit left after selling goods; in other words, it means that out of 100 won in sales, 24 won remained as operating profit.
When Samsung Electronics and SK Hynix are excluded, the figure changes. The operating profit margin for manufacturing, excluding the two companies, falls to 7.2%. That is a gap of 16.8 percentage points from 24.0%.
◆ Sales growth also drops from 39.6% to 14.0%
The manufacturing sales growth rate reached 39.6%, up 18.5 percentage points from 21.1% in the previous quarter. It is a record high. Excluding Samsung Electronics and SK Hynix, it falls to 14.0%.
The sales growth rate for all industries was 26.7%, more than double the previous quarter’s 13.5%, surpassing 24.9% recorded in the fourth quarter of 2021. Excluding the two companies, it was 12.0%. The operating profit margin for all industries was 16.9%, more than triple the 5.1% from a year earlier. Excluding the two companies, it was 6.2%.
By sector, the operating profit margin for machinery and electrical/electronic equipment, which includes semiconductors, came to 43.0%, roughly six times higher than 7.4% a year earlier. The Bank of Korea explained that “because the semiconductor industry has a high fixed-cost ratio, the increase in operating profit expanded more than the increase in sales.” Fixed costs are expenses incurred regardless of production volume, such as factory depreciation and labor costs. Even if sales increase, fixed costs remain unchanged, so profit grows faster than sales.
The sales growth rate for machinery and electrical/electronic equipment was 88.5%, up 36.4 percentage points from 52.1% in the previous quarter. In the subcategory of electronic, video, and communications equipment, it reached 119.7%, compared with 75.7% in the previous quarter.
◆ Non-manufacturing falls to 5.0%
The operating profit margin for non-manufacturing was 5.0%, down from 5.1% a year earlier.
Transportation was identified as the main factor. The transportation industry’s operating profit margin fell from 7.0% to 4.8% over the same period. As international oil prices rose due to conflict in the Middle East, fuel costs increased.
The non-manufacturing sales growth rate was 9.7%, up 6.0 percentage points from 3.7% in the previous quarter. Growth was led by wholesale and retail, where sales increased at semiconductor distributors and department stores, and by transportation, boosted by stronger air cargo demand. Construction rose 0.3%, turning positive for the first time in eight quarters, reflecting demand for semiconductor plant construction.
The Bank of Korea said that the improvement trend continues even when semiconductors are excluded. A central bank official said, “The non-manufacturing sales growth rate is not a low figure,” adding that “if Samsung Electronics and SK Hynix are excluded, the gap between manufacturing (14.0%) and non-manufacturing (9.7%) narrows.”
◆ Debt ratio at 84.5%, while small businesses worsen to 112.1%
The debt ratio improved to 84.5%, down 2.5 percentage points from 87.0% in the previous quarter. The debt ratio is the proportion of debt relative to equity; the lower it is, the more stable the financial structure. The dependence on borrowings also fell from 23.9% to 22.8%.
The interest coverage ratio reached 1,513.4%, compared with 930.8% in the previous quarter. The interest coverage ratio is operating profit divided by interest expenses. If it falls below 100%, it means operating profit is not even enough to cover interest payments.
The results varied by company size. The debt ratio for small and medium-sized enterprises worsened to 112.1%.
The pre-tax net profit margin rose to 23.1% from 15.4% in the previous quarter.