S.Korea's corporate revenue growth slows in 2018

Source: Xinhua| 2019-06-04 12:12:30|Editor: Yang Yi
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SEOUL, June 4 (Xinhua) -- South Korea's corporate revenue growth slowed down last year on the weak shipment of major export items, central bank data showed Tuesday.

Revenue in all industries, which exclude financial institutions, grew 4.2 percent in 2018 from a year earlier, down 5.7 percentage points from the previous year, according to the Bank of Korea (BOK).

It was based on the survey of 24,539 industrial companies subject to external audit.

The revenue growth rate for big corporations fell from 9.5 percent in 2017 to 4.3 percent in 2018, while the figure for small firms diminished from 11.3 percent to 3.9 percent in the same period.

The growth rate for manufacturers declined from 9.8 percent to 4.5 percent in the cited period, and the reading for non-manufacturers slipped from 9.9 percent to 3.8 percent.

It was attributed to weak global demand for the country's key export items such as semiconductors, display panels and telecommunication devices, including smartphone.

Revenue in the electronics and communication equipment industry gained 3.1 percent last year, after jumping 19.9 percent in the previous year.

The figure in the construction sector fell 1.2 percent in 2018, after growing 11.7 percent in the prior year. Revenue in the machinery and equipment sector shrank 2.9 percent last year, turning downward from an 18.6 percent growth in the prior year.

The ratio of operating profit to revenue retreated from 7.3 percent in 2017 to 6.9 percent in 2018. The number for big corporations and small firms all contracted 0.5 percentage points to 7.1 percent and 5.9 percent each last year.

The percentage of companies recording operating loss stood at 22.1 percent of the total in 2018, up 2.5 percentage points from the previous year.

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