Businesses Suffer Record Earnings Drop

  • By Kim Eun-jung

    September 16, 2020 12:23

    Corporate earnings reached their worst level so far during the second quarter of this year due to the coronavirus epidemic.

    According to the Bank of Korea on Tuesday, corporate revenues from April to June declined 10.1 percent on-year. The BOK's analysis was based on the earnings data of 3,862 out of 20,000 businesses subject to outside auditing.

    Corporate earnings had already been heading downhill since early last year. They fell 2.4 percent on-year in the first quarter of 2019, 1.1 percent in the second, 2.8 percent in the third and 0.5 percent in the fourth.

    It was the first time since the BOK began compiling such data that corporate revenues fell for six straight quarters, and the 10.1 percent drop was also the biggest ever.

    Manufacturers suffered bigger declines even than others. Manufacturing sales declined 12.7 percent on-year, with the petroleum industry's plummeting 26.8 percent followed by automakers' (-17.3 percent), textile and apparel makers' (-15.9 percent) and metal manufacturers' (-15.2 percent).

    Non-manufacturing companies saw sales drop 6.5 percent, but the transportation sector suffered a 15.9 percent drop.

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