Corporate profits, debts improve in 2025: BOK

What happened: Bank of Korea data on about 983,000 non-financial firms shows South Korean corporate profitability and debt levels improved in 2025, helped by semiconductors and transportation, while sales growth slowed. Key numbers: Sales growth 2.4 percent versus 3.7 percent prior year. Operating profit to sales 5.2 percent, up from 4.6 percent, highest since 2021. Why it matters: Margins and leverage improved even as sales growth decelerated, but the rising share of firms unable to cover interest costs points to strain among weaker companies.

Bank of Korea data on about 983,000 non-financial firms shows South Korean corporate profitability and debt levels improved in 2025, helped by semiconductors and transportation, while sales growth slowed.

Margins and leverage improved even as sales growth decelerated, but the rising share of firms unable to cover interest costs points to strain among weaker companies.