Major Companies Historical Record on Business in the First Half of This Year

Even if the management circumstance became worse such as the revaluation of Won, major domestic companies reported consecutively historical business operation in the first half of this year (January to June).

As reporting business records for the first half at 14th, automotive manufacturers showed excellent operation partly because of the deduction of Special Consuming Tax and partly because of the increase of demand for deluxe car even if they suffered difficulties from industrial disputes. Hyundai Motors recorded turnover of 12.3 trillion won and net profits of 89.34 billion Won and increased by 11% and 46.3% each compared to the same period of the last year. According to Hyundai Motors “even if the accounting reflected the increase of wage resulted from early industrial dispute settlement and conservative calculation of warrantee repairing expenses in US, the business record become better.”

Hyundai Mobis also showed historical records in turnover of 1.78 trillion Won and net profits of 213.1 billion Won. Kia Motors recorded turnover of 6.45 trillion Won and net profits of 358.8 billion Won. Ssangyoung Motors, Daewoo Motors, Hankook Tyres, etc showed also historical business records.

Daewoo Shipping and Marine Engineering recorded turnover of 1.58 trillion Won and net profits of 132 billion Won. So it recovered from impaired capital completely firstly since the separation from Daewoo Heavy Industry in 2000. INI Steels also recorded historical turnover of 1.66 trillion Won since its establishment.

Major electronic manufacturers such as Samsung Electronics, LG Electronics, etc also recorded historical operation. In case of Samsung, the turnover is 19.87 trillion Won, LG 9.92 trillion Won increased by 19.8%.

Communication companies and retailers & wholesalers recorded historical operation due to the World Cup special demands. In case of SK Telecom turnover increased by 13% compared to the same period of the last year, and net profits increased by 48%. Thrunet, a super speed internet-company, comes above a break-even point in the first half of this year. Shinsaegae recorded turnover of 2.97 trillion Won increased by 34% compared to the same period of the last year, and net profits of 120.9 billion Won.

Korea Reserve Bank and private economic research institutes analyzed the excellent business records as the results of increase of domestic demands and exports with increase of international competitiveness.

One the other side, Hyundai Heavy Industries recorded the increase of turnover, but net profits decreased by 16.3% because of the revaluation of Won. Hynix suffering difficulties from the matter of overseas sale recorded turnover of 1.6 trillion Won and net loss of 414 billion Won. The results of the operation show differences according to their situations.