Company Earnings Shrink, Household Debt Soars

Korean companies' earnings have been shrinking for two years running due to the global economic slump while household debt has been rising rapidly.

Statistics Korea on Tuesday said 12,041 companies employing more than 50 workers and capitalized at more than W300 million generated a total of W2,231 trillion in revenues last year, down 1.2 percent from 2013 (US$1=W1,154).

But net profit before tax rose 5.9 percent to W94 trillion.

According to the Korea Exchange and Korea Listed Companies Association, the January to September cumulative revenues of 498 listed companies stood at W1,206 trillion, down 3.2 percent from the same period of last year, but cumulative operating profit rose 12.7 percent to W77.5 trillion.

Household debt kept growing at the fastest clip ever. The Bank of Korea said household debt stood at a record W1,167 trillion as of end September.