Listed firms' net dips 17 pct in 2022 amid monetary tightening

listed firms-2022 earnings

Listed firms' net dips 17 pct in 2022 amid monetary tightening

By Chung Joo-won

SEOUL, April 4 (Yonhap) -- Net profit of listed South Korean firms declined 17.31 percent on-year in 2022 amid hikes in key interest rates, the bourse operator said Tuesday.

Consolidated net profit of 604 companies on the main KOSPI market totaled 131.5 trillion won (US$100.4 billion) last year, compared with a profit of 159 trillion won from a year earlier, according to the data compiled by the Korea Exchange (KRX).

Operating profit decreased 14.7 percent on-year to 159.4 trillion won, while sales increased 21.34 percent to 2,814.9 trillion won over the cited period.

The tally excludes 84 KOSPI-listed firms that did not or were not required to submit regulatory filings.

Consolidated financial statements reflect all assets, liabilities and operating accounts of a parent company and its subsidiaries. The firms close their books Dec. 31.

Excluding KOSPI's top cap Samsung Electronics Co., the listed firms' total net profit decreased 36.33 percent from a year ago.

The listed firms' plight came as the central bank tightened its monetary policy to tame inflation.

In 2022, the Bank of Korea (BOK) jacked up its key interest rates seven times by a combined 2.25 percentage points.

Of the 604 firms, 455, or 75.33 percent, were in the black in 2022, down from 81.13 percent the previous year. The 149 others, or 24.67 percent, suffered losses, compared with 18.87 percent the previous year.

Seven industrial categories, including tech, auto, retail and storage, saw their net earnings rise, while 10 others, including construction, steel, bio, services and chemicals, suffered deficits.

Companies listed on the tech-laden KOSDAQ also registered weak earnings in 2022.

The consolidated net profit of 1,100 companies decreased 23.5 percent on-year to 8.7 trillion won.

Operating profit edged up 0.8 percent to 15.37 trillion won, and sales added 19.9 percent to 273.4 trillion won, during the same 12 months.

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