Operating profits of S. Korea's top 500 companies halve in Q1

SEOUL, May 16 (Xinhua) -- The operating profits of South Korea's top 500 companies almost halved in the first quarter of this year due to sluggish semiconductor exports, a corporate data tracker said Tuesday.

The combined operating income of the 309 firms out of the country's top 500 companies, which made their earnings available, plunged 48.8 percent from a year earlier to 25.9 trillion won (19.4 billion U.S. dollars) in the January-March quarter, according to CEO Score.

It marked the third consecutive quarterly reduction after retreating 11.4 percent in the third quarter and 69.1 percent in the fourth quarter last year.

Of the 19 industries, 11 recorded a fall in operating profit, while eight posted growth in the first quarter.

The information technology, electrical and electronic sector, including chip giants Samsung Electronics and SK hynix, registered an operating loss of 794.1 billion won (593.5 million dollars) in the first quarter, turning into red from an operating profit of 20.9 trillion won (15.6 billion dollars) a year earlier.

Operating profits in the petrochemical, transportation, pharmaceutical, and steel industries retreated in double digits, but the automotive and auto parts sector's operating income jumped 81.6 percent in the first quarter.

Meanwhile, the combined revenue of the 309 companies grew 6.8 percent over the year to 700.8 trillion won (523.8 billion dollars) in the first quarter due mainly to the auto parts makers' rapid revenue growth.