Corporate Profits Decline for 1st Time in 13 Years
23 July, 2019
Korean businesses' net profits plunged more than five percent last year, the first drop since 2005.
Corporate profits after wages and taxes last year fell 5.25 percent compared to 2017 to W404.5 trillion, according to the Bank of Korea on Monday (US$1=W1,178).
Even though Korea's economy grew 2.7 percent, the latest figures show that businesses' bottom lines shrank.
One factor was the government's "income-led" growth policy, which saw sharp rises in the minimum wage.
Average salaries increased 5.3 percent last year even though job growth stood at only 97,000, the lowest since the global financial crisis.
Semiconductor prices also plummeted, reducing a factor that skewed figures the previous year to mask a decline in most other sectors.
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