In the second quarter this year, both the sales growth rate and profitability of domestic companies reached their highest levels since statistics began being compiled. While Samsung Electronics and SK Hynix significantly boosted overall performance improvements, even excluding these two companies, sales and profitability improved, indicating that the recovery in corporate performance spread relatively evenly across sectors.
According to the Bank of Korea's "2026 Q2 Corporate Management Analysis Results" released on the 9th, the sales growth rate for companies subject to external audits rose to 26.7%, nearly double the first quarter's 13.5%. This also surpassed the previous record high of 24.9% in the fourth quarter of 2021.
The manufacturing sector's sales growth rate jumped from 21.1% in the first quarter to 39.6% in the second quarter. In particular, the machinery and electrical/electronics industries surged from 52.1% to 88.5%. With strong semiconductor performance continuing, sales growth for electronic, video, and communication equipment soared from 75.7% to 119.7%, leading improvements in manufacturing sector results.
Even excluding major semiconductor companies, the recovery trend was clear. The sales growth rate for all industries excluding Samsung Electronics and SK Hynix was recorded at 12.0%. Manufacturing sales growth also narrowed significantly with non-manufacturing (9.7%) when these two companies were excluded, reaching 14.0%.
A Bank of Korea official stated, "Even excluding Samsung Electronics and SK Hynix, both growth potential and profitability are improving," adding, "I want to emphasize that improvements are occurring relatively evenly across all sectors."
Non-manufacturing sales growth also expanded from 3.7% in the first quarter to 9.7% in the second quarter. Due to rising shipping rates caused by the Middle East war and increased demand for air cargo, transportation sector sales growth rose from 8.1% to 13.6%, while wholesale and retail trade also climbed from 7.1% to 13.7%. In the case of wholesale and retail trade, strong growth was observed not only among semiconductor distributors but also among private consumption-related companies such as department stores.
The construction sector also saw its sales growth rate rise from -4.0% in the first quarter to 0.3% in the second quarter, driven by expanded semiconductor factory construction projects, marking a turnaround to positive growth for the first time in eight quarters. By company size, large corporations' sales growth increased from 16.0% to 30.5%, while SMEs (small and medium-sized enterprises) rose from 2.4% to 10.2%.
Profitability improvements were even more pronounced. The second quarter's operating profit margin reached 16.9%, exceeding three times the 5.1% recorded in the same period last year, setting a new all-time high. The pre-tax net profit margin also jumped from 5.3% to 23.1%, achieving a record peak.
While semiconductors played a major role in driving profitability improvements, other sectors also showed positive trends. Manufacturing operating profit margins surged from 5.1% in the second quarter last year to 24.0% this year. Machinery and electrical/electronics industries experienced an "operating leverage effect," where operating profits grew more significantly than sales due to high fixed cost ratios in the semiconductor industry, causing their operating profit margin to soar from 7.4% to 43.0%. The petroleum and chemical sector also improved from 2.5% to 9.5%, benefiting from rising refining margins amid the Middle East war.
The operating profit margin for all industries excluding Samsung Electronics and SK Hynix was recorded at 6.2%. While manufacturing reached an operating profit margin of 24.0% when including these two companies, it dropped to 7.2% when excluded, significantly narrowing the gap with non-manufacturing (5.0%).
Profitability gaps by company size were significant. Large corporations' operating profit margins rose sharply from 5.1% in the second quarter last year to 19.1% this year, whereas SMEs improved only slightly from 5.0% to 5.3%. The debt ratio for all companies decreased from 87.0% in the first quarter to 84.5% in the second quarter, and dependence on borrowing also fell from 23.9% to 22.8%.
The Bank of Korea forecasted that corporate performance improvements would continue into the second half of the year, supported by robust investment demand for artificial intelligence (AI), sustained semiconductor market strength, and a recovery in domestic consumption.
in ECONOMY
