facebook
twitter
rss
account
search
search
 

Bank of Korea: 2012 corporate profitability down

April 18, 2013 at 5:59 AM   |   Comments

SEOUL, April 18 (UPI) -- South Korean companies' profitability dropped to 4.8 percent last year, a 9-year low blamed on the global economic slowdown, the Bank of Korea said Thursday.

The Bank of Korea, in a survey of 1,723 companies, said last year's corporate profitability -- the ratio of operating profit to sales -- fell to 4.8 percent from 5.3 percent in 2011 as the global conditions affected sales growth.

The South Korean economy, which is heavily dependent on exports, is Asia's fourth largest after China, Japan and India

The bank's survey said 2012 sales grew 5 percent on-year in 2012, down from 14.4 percent growth in 2011.

"Despite low rates, local firms refrained from borrowing as it was difficult for them to generate profits or increase investment amid the slowing economy," said Kim Kyung-hak, the bank's head of the corporate statistics team, Yonhap News reported.

The corporate performance reflected the country's slow economic growth of 2 percent in 2012. The bank's growth outlook for 2013 is 2.6 percent, while that of the government is 2.3 percent.

The bank said the slowing corporate profitability curtailed companies' capacity to cover financial costs.

Topics: Kim Kyung
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian currency crashes Russian currency crashes
2
Navy tests MQ-8C unmanned helos Navy tests MQ-8C unmanned helos
3
New submarine set for commissioning New submarine set for commissioning
4
SM-6 long-range interceptors on target in U.S. Navy test SM-6 long-range interceptors on target in U.S. Navy test
5
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
Trending News
Around the Web
x
Feedback