The Power of SamjeonNix... Corporate Growth and Profitability Hit All-Time Highs in Q2

Sales Growth Rate Jumps from 13.5% in Q1 to 26.7% in Q2
12% Even Excluding SamjeonNix
Operating Margin Rises 11.8 Percentage Points Year-on-Year to 16.9%

In the second quarter of this year, all key financial indicators—growth, profitability, and stability—improved for domestic companies in Korea. Both the sales growth rate and operating margin reached the highest levels since records began. While Samsung Electronics and SK hynix led the strong performance thanks to a global boom in the semiconductor sector driven by expanded investments in artificial intelligence (AI), other industries also showed signs of recovery.

According to the "Corporate Management Analysis for Q2 2026" released by the Bank of Korea on September 9, the sales growth rate for domestic companies subject to external audit (external audit companies), which represents corporate growth, was 26.7% in the second quarter of this year. This figure rose by 13.2 percentage points from 13.5% in the previous quarter, marking the highest level since statistics were first compiled in the first quarter of 2015. Even excluding the impact of Samsung Electronics and SK hynix (collectively referred to as Samsung Hynix), the sales growth rate remains around 12%.

By industry, both the manufacturing and non-manufacturing sectors recorded increases. Manufacturing sector sales surged from 21.1% in the first quarter to 39.6% in the second quarter, an increase of 18.5 percentage points, and up 41.3 percentage points year-on-year (compared to -1.7% in the same period last year). Even excluding Samsung Hynix, the manufacturing sector's sales growth rate was 14.0%.

The improvement in manufacturing performance is due to the continued strength of the semiconductor market, which led to the machinery·electrical electronics sector's growth rate soaring from 52.1% in the first quarter to 88.5% in the second quarter. Within this, the electronics·visual·telecommunications equipment sector jumped from 75.7% to 119.7%.

In the petrochemical sector, sales also rose significantly, from 4.3% to 24.4% over the same period, due to higher oil prices—a rise of 20.1 percentage points. Sectors such as textiles·apparel (-1.2%), nonmetallic minerals (-3.6%), and furniture and others (-4.1%), which had posted declines in sales growth in the first quarter, switched to gains in the second quarter.

The non-manufacturing sector also saw growth, with sales growth rates in wholesale and retail, as well as in the transport sector, climbing from 3.7% in the first quarter to 9.7% in the second quarter, an increase of 6 percentage points.

The transport sector benefited from higher ocean freight rates caused by the escalation of the Middle East war and expanded air cargo demand, with its sales growth rate climbing from 8.1% to 13.6%, a 5.5 percentage point increase. The wholesale and retail sector also saw a jump from 7.1% to 13.7%—up by 6.6 percentage points—thanks to robust sales across semiconductor distributors, department stores, and other retailers.

The construction sector (from -4.0% to 0.3%) also marked a slight uptick in sales growth, ending eight consecutive quarters of declines, thanks in part to the expansion of semiconductor plant construction orders.

By company size, both large corporations and small-to-medium enterprises (SMEs) posted gains. Large corporations saw their sales growth rate rise from 16.0% in the first quarter to 30.5% in the second quarter—a 14.5 percentage point increase. SMEs’ growth rates also climbed from 2.4% to 10.2%, up 7.8 percentage points.

Profitability also improved. The operating margin (operating profit to sales ratio) in the second quarter of this year was 16.9%, which is up 11.8 percentage points from 5.1% in the second quarter of last year. This is also the highest level ever recorded.

By industry, the manufacturing sector’s operating margin soared more than fourfold in a year, from 5.1% to 24%. This was driven by the machinery·electrical electronics sector, where rising memory semiconductor prices boosted sales and reduced fixed-cost burdens, sending profitability sharply up from 7.4% to 43%. Excluding Samsung Hynix, the manufacturing sector operating margin was 7.2%, surpassing last year's overall manufacturing sector operating margin.

The petrochemical sector saw its margin improve from 2.5% to 9.5% (up 7 percentage points) due to rising margins on the back of heightened geopolitical risks in the Middle East. The transport equipment sector also climbed from 2.7% to 7.5% over the same period.

In contrast, the non-manufacturing sector saw a slight decrease in profitability (from 5.1% to 5.0%), as higher oil prices and increased sea route detouring costs led to a fall in profitability in electricity·gas (from 5.0% to 3.9%) and the transport sector (from 7.0% to 4.8%).

By size, profitability rose for both large corporations (from 5.1% to 19.1%) and SMEs (from 5.0% to 5.3%).

The debt ratio, a key indicator of financial soundness, fell by 2.5 percentage points, from 87.0% in the first quarter to 84.5% in the second quarter of this year. The dependence on borrowings also decreased slightly, dropping by 1.1 percentage points to 22.8%.

Lee Miju, head of corporate statistics at the Bank of Korea, commented on the outlook for the third quarter, saying, "In the second half, given the robust demand for AI-related investment, the favorable semiconductor market conditions are expected to continue, which will likely help drive a recovery in domestic demand. As a result, further improvements in the main financial indicators are expected, mainly in the manufacturing and semiconductor sectors. However, high levels of uncertainty persist regarding the ongoing Middle East war and U.S. tariff policy, so we need to closely monitor developments according to the business environment for domestic companies."

This content was produced with the assistance of AI translation services.