April 26, 2024
Industrials
Korean firms’ overseas operations worst since 2008
[THE INVESTOR] The operations of South Korean firms’ overseas subsidiaries have deteriorated to the worst level since 2008, the Overseas Economic Research Institute said on Dec. 28.
According to the Export Import Bank of Korea’s think-tank, the average annual sales of some 6,000 overseas subsidiaries plunged 11.8 percent in 2015 from the previous year to come in at about US$112 million.
By industry, manufacturing sector saw a drop of 13.4 percent, while mining companies’ revenues dropped 37 percent.
Along with sales, the companies’ average operating profit nosedived 34.1 percent to come in at about US$2.7 million last year.
In comparison, the average operating profit stood at about US$4.7 million in 2012 and 2013, and at US$4.1 million in 2014.
With the changes, the companies’ net profits were pushed down further -- with the average coming to a net deficit of US$700,000 in 2015. According to the think-tank, this is the first time South Korean firms’ overseas subsidiaries’ average figures showed a net loss since 2008.
By Choi He-suk (cheesuk@heraldcorp.com)
According to the Export Import Bank of Korea’s think-tank, the average annual sales of some 6,000 overseas subsidiaries plunged 11.8 percent in 2015 from the previous year to come in at about US$112 million.
By industry, manufacturing sector saw a drop of 13.4 percent, while mining companies’ revenues dropped 37 percent.
Along with sales, the companies’ average operating profit nosedived 34.1 percent to come in at about US$2.7 million last year.
In comparison, the average operating profit stood at about US$4.7 million in 2012 and 2013, and at US$4.1 million in 2014.
With the changes, the companies’ net profits were pushed down further -- with the average coming to a net deficit of US$700,000 in 2015. According to the think-tank, this is the first time South Korean firms’ overseas subsidiaries’ average figures showed a net loss since 2008.
By Choi He-suk (cheesuk@heraldcorp.com)
