Korea’s leading information technology and telecommunications firms are making unprecedented profits this year following unexpectedly rapid recovery from the regional economic crisis coupled with explosive growth in internet-related industries. According to research results released by SK Securities Co, 71 Korean companies in the electronics and IT fields are forecast to generate 6.777 trillion won ($5.65bn) in profits for the current financial year, a whopping 1,169.5% increase from last year.
By far the largest profit will be recorded by Samsung Electronics which is expected to pull in 3.2 trillion won ($2.67bn), or almost as much as the other 70 put together. Samsung’s success has been powered by high growth in mobile handset sales, a major recovery in DRAM sales amid renewed demand for the memory chips worldwide and very rapidly growing TFT-LCD sales. SK Securities said all companies involved with semiconductors, computers, TFT-LCDs and mobile handsets will see a big leap in profits.
Some major firms including Hyundai Electronics Industries, KEP Electronics, KNC, Anam Semiconductor Co and Saehan Electronics are likely to return to profitability after suffering major losses for the past two or more years, while only eight of the 71 firms are expected to remain in the red.
Other companies expected to turn in substantial profits include LG Electronics with more than 1.9 trillion won ($1.58bn), Korea Telecom with 400bn won ($333m), LG Information & Communication with 310bn won ($258m), SK Telecom with 225bn won ($187m), Hyundai Electronics with 200bn won ($167m), Samsung Display Devices with 160bn won ($133m) and Anam Semiconductor with 100bn won ($83m).
SK Securities said the explosive growth of info-tech industries will continue next year, unless any drastic negative upheaval takes place. It said the aggregate revenue of the 71 firms will hit 91.18 trillion won ($76bn), up 17% from this year, while net profit will be up 23% to 8.354 trillion won ($6.96bn).
