Updated
Updated · 매일경제 · Jul 21
South Korea's Major Firms Add 0.2% Jobs as Operating Profit Jumps 81%
Updated
Updated · 매일경제 · Jul 21

South Korea's Major Firms Add 0.2% Jobs as Operating Profit Jumps 81%

3 articles · Updated · 매일경제 · Jul 21

Summary

  • 282 of South Korea’s top 500 companies added just 1,000 workers over three years, lifting headcount to 1.3 million from 1.299 million, Leaders Index said.
  • Combined sales still rose 10.9% to 3,684.3 trillion won and operating profit surged 81% to 277.68 trillion won, underscoring how weak hiring was relative to financial growth.
  • Sales growth tracked employment more closely than profit growth: autos, steel, batteries and transportation expanded payrolls even as operating profit fell in some cases.
  • Shipbuilding and machinery posted the biggest hiring gain at 12.6%, while IT, electrical and electronics — led by Samsung Electronics and SK hynix — increased employment only 0.6% despite a 2,740.5% profit jump.
  • Domestic-demand sectors were the weakest, with telecom employment down 17.6% and food and beverage down 4.8% even though both sectors still reported modest sales and profit growth.

Insights

As AI drives record profits and job cuts, can Seoul force its corporate giants to share the wealth with workers?
Chaebols are replacing graduates with AI. Is South Korea's youth employment crisis now spiraling out of control?
With Seoul pouring trillions into its own industries, will its massive investment promises to the U.S. actually materialize?