S. Korea Corporate Revenue Slows as Construction, Oil Sectors Drag

(MENAFN) South Korea's corporate revenue growth decelerated last year, weighed down by underperforming oil refining and construction sectors, central bank figures revealed Wednesday.

Combined revenue across 13,918 manufacturers and 20,538 non-manufacturers subject to external audit, excluding financial institutions, expanded 2.5 percent throughout 2025 compared to the preceding year, markedly slower than the 4.2 percent growth recorded previously, according to the Bank of Korea (BOK).

Manufacturer sales climbed 3.2 percent annually, representing a considerable slowdown from the prior year's 5.2 percent expansion.

Non-manufacturer revenue gained 1.6 percent in 2025, retreating from the 3.0 percent growth achieved throughout 2024.

Construction sector revenue suffered the sharpest contraction, plummeting 9.6 percent annually, while oil refining, chemical, and electrical equipment industries recorded single-digit revenue declines throughout the reporting period.

Despite sluggish revenue performance, corporate profitability demonstrated encouraging improvement. The operating profit-to-revenue ratio advanced to 6.2 percent in 2025 from 5.4 percent the prior year.

Manufacturer profitability ratios climbed substantially from 5.5 percent to 6.9 percent, buoyed by elevated semiconductor pricing, while non-manufacturer ratios edged modestly higher from 5.2 percent to 5.4 percent.

The interest coverage ratio, measuring corporate capacity to service debt obligations through operating profit, strengthened considerably to 369.8 percent in 2025 from 305.8 percent previously.

Corporate debt-to-equity ratios improved to 98.3 percent last year, declining from 103.4 percent recorded the preceding year, signaling strengthening balance sheet fundamentals across South Korean enterprises.

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