Operating Profit Margin at 7.4%… Six Increase in Companies Joining the 1 Trillion Won Operating Profit Club, Totaling 29
Samsung Electronics Ranks First in Net Profit from 2000 to 2024 for 25 Years
Last year, based on the separate financial statements of the top 1,000 domestic listed companies by sales, the operating profit totaled approximately 148 trillion won, the highest since 2000, but the operating profit margin stood at 7.4%. Additionally, the number of companies in the “1 Trillion Won Operating Profit Club” increased by six from the previous year, reaching 29. However, about half of the companies reported decreased operating profits or losses compared to two years ago. The leader in operating profit among domestic listed companies last year was SK Hynix.
According to the analysis “Operating and Net Profit Status of the Top 1,000 Domestic Listed Companies by Sales from 2000 to 2024” released by the Korea CXO Research Institute on the 9th, the operating profit of these companies last year was approximately 148 trillion 286.5 billion won. This was a 92.7% (around 70 trillion won) increase compared to the operating profit of 76 trillion 924.5 billion won recorded in 2023.
In 2023, major companies like Samsung Electronics and SK Hynix recorded significant operating losses, leading to a sharp decline in total operating profits to below 100 trillion won, but a recovery started last year, interpreted as a rebound effect. The operating profit margin, the proportion of operating profit to sales of the top 1,000 companies, was at 7.4%.
Nearly half of the companies saw a decline in operating profit or recorded losses compared to the previous year, numbering 493. Those with operating losses were 129 companies, down 13 from the previous year (142 companies), while 507 companies saw an increase in operating profit or turned to profit.
The top 5 companies in terms of operating profit among the top 1,000 companies last year were SK Hynix, Samsung Electronics, Kia, Hyundai Motor, and HMM. SK Hynix recorded an operating loss of over 4 trillion 672.1 billion won in 2023 but turned to a profit with an operating profit exceeding 21 trillion 331.4 billion won last year, taking the top spot. This was the first time SK Hynix recorded the highest operating profit since becoming part of the SK Group.
Samsung Electronics ranked second in operating profit for two consecutive years. Samsung Electronics saw a separate operating loss of 11 trillion 526.2 billion won in 2023, but returned to profit with over 12 trillion 361 billion won in 2024.
Last year, the number of companies in the “1 Trillion Won Operating Profit Club” was 29, an increase of six from the previous year’s 23. Eleven companies newly joined the 1 trillion club, while five were excluded. Notably, Korea Electric Power Corporation turned a loss of 6 trillion 503.9 billion won in 2023 into a profit of 3 trillion 166.6 billion won in 2024.
Additionally, HMM (2023: 564.7 billion won → 2024: 3 trillion 4897 billion won), Hanwha Aerospace (519 billion won → 1 trillion 499.7 billion won), Hyundai Marine & Fire Insurance (981.6 billion won → 1 trillion 401.8 billion won), Meritz Financial Group (335.7 billion won → 1 trillion 220.3 billion won), Celltrion (638.4 billion won → 1 trillion 211 billion won), Krafton (811.6 billion won → 1 trillion 208.5 billion won), Samsung Securities (662 billion won → 1 trillion 105.4 billion won), and Kiwoom Securities (472.3 billion won → 1 trillion 24.7 billion won) reported newly entering the “1 Trillion Won Operating Profit Club” in the past year.
Of the companies joining the 1 trillion won operating profit club last year, those with an operating profit growth rate of over 100% compared to the previous year included HMM, Meritz Financial Group, Hanwha Aerospace, Kiwoom Securities, and Korea Gas Corporation.
In contrast, SK Inc. (2023: 1 trillion 550.4 billion won → 2024: 998.3 billion won), S-Oil (1 trillion 350.8 billion won → 419.5 billion won), SK Innovation (1 trillion 235.4 billion won → 493.2 billion won), KT (1 trillion 185.3 billion won → 346.4 billion won), and Korea Financial Group (1 trillion 148.8 billion won → 620.7 billion won) were excluded from the 1 trillion won club last year.
Along with operating profit, the total net profit (net income) of the 1,000 major companies last year reached its highest level since 2000. Last year’s total net profit for the 1,000 companies was 134 trillion 462.9 billion won, an increase of approximately 30% from 2023’s 103 trillion 571.4 billion won. The number of companies joining the 1 trillion net profit club increased by 10, from 19 companies in 2023 to 29 in 2024. Samsung Electronics has maintained its top rank in net profit for 25 years from 2000 to 2024.
Oh Il-seon, head of the Korea CXO Research Institute, emphasized that Samsung Electronics, the leading domestic company in sales, significantly contributes to the economy by realizing high operating profits, thereby maximizing shareholder and investor benefits, raising stock prices, and increasing tax revenue.