South Korean corporate growth and profitability indicators soared to their highest levels since record-keeping began in the second quarter of this year. The semiconductor boom driven by expanding artificial intelligence (AI) investment lifted the overall figures. However, excluding Samsung Electronics and SK Hynix, revenue growth and operating margin fall by more than half, showing that the record-breaking performance improvement is heavily concentrated in a handful of semiconductor giants.

According to the “2026 Q2 Corporate Management Analysis” released by the Bank of Korea on September 9, a sample survey of 4,260 companies out of 26,509 externally audited corporations showed revenue growth of 26.7%. This is a 13.2 percentage point jump from Q1’s 13.5%, and the highest since the statistics were first compiled in Q1 2015. The previous record was 24.9% in Q4 2021.

Profitability indicators also set new all-time highs. Operating margin surged 11.8 percentage points from 5.1% in Q2 last year to 16.9% in Q2 this year. This means companies earned 169 won (approximately $0.13) in operating profit for every 1,000 won (approximately $0.75) of sales. The previous record of 13.2% set in Q1 was broken in just one quarter. Pre-tax net margin also rose from 5.3% to 23.1%, the highest since statistics began.

Semiconductors Drive Record-Breaking Numbers

Semiconductors led the performance improvement. Manufacturing revenue growth jumped from 21.1% in Q1 to 39.6% in Q2. In particular, the machinery and electrical equipment sector’s revenue growth surged from 52.1% to 88.5%, while the electronic, video, and communications equipment sector—which includes semiconductor companies—soared from 75.7% to 119.7%.

Manufacturing operating margin also rose nearly fivefold from 5.1% a year earlier to 24.0%. Given the semiconductor industry’s high fixed-cost structure, the so-called “operating leverage effect”—where operating profit grows faster than revenue—has kicked in full force. The machinery and electrical equipment sector’s operating margin surged roughly sixfold from 7.4% to 43.0%.

The petroleum and chemical sector also benefited from higher refining margins amid the Middle East conflict, with operating margin improving from 2.5% to 9.5%. Transportation equipment likewise rose from 2.7% to 7.5% over the same period.

Excluding Samsung and SK Hynix, Numbers Halve

However, excluding the two semiconductor giants, the temperature of corporate performance drops significantly. All-industry revenue growth excluding Samsung Electronics and SK Hynix fell 14.7 percentage points from 26.7% to 12.0%. Operating margin also dropped from 16.9% to 6.2%, just one-third of the overall figure.

The concentration is even more pronounced in manufacturing. Manufacturing revenue growth of 39.6% falls to 14.0% when the two companies are excluded. Operating margin also drops from 24.0% to 7.2%, narrowing the gap with non-manufacturing’s 5.0% considerably.

The table below shows changes in key indicators depending on whether Samsung Electronics and SK Hynix are included.

IndicatorAll CompaniesExcluding Samsung & SK HynixAll-industry revenue growth26.7%12.0%All-industry operating margin16.9%6.2%Manufacturing revenue growth39.6%14.0%Manufacturing operating margin24.0%7.2%

Note: Based on Bank of Korea 2026 Q2 Corporate Management Analysis

Non-Manufacturing Shows Signs of Recovery

The improvement was not limited to semiconductors. Non-manufacturing revenue growth also expanded from 3.7% in Q1 to 9.7% in Q2. The transportation sector saw revenue growth rise from 8.1% to 13.6%, driven by higher shipping freight rates amid the Middle East conflict and expanded air cargo demand. Wholesale and retail trade also rose from 7.1% to 13.7%, buoyed by strength across semiconductor distributors and general retailers including department stores.

Construction revenue turned positive, shifting from a 4.0% decline in Q1 to a 0.3% increase in Q2. This marks the first growth in eight quarters, supported by expanded semiconductor plant construction volumes.

However, non-manufacturing profitability remained stagnant. Operating margin edged down from 5.1% to 5.0%. The transportation sector was a major drag, with operating margin falling from 7.0% to 4.8% due to high oil prices and increased costs from rerouted shipping lanes.

Widening Gap Between Large Enterprises and SMEs

The gap also widened by company size. Large enterprise revenue growth jumped from 16.0% to 30.5%, while SMEs only increased from 2.4% to 10.2%. In terms of operating margin, large enterprises rose 14 percentage points from 5.1% to 19.1%, while SMEs saw only marginal improvement from 5.0% to 5.3%.

Financial stability indicators also showed a divergence. Overall corporate debt ratio fell from 87.0% to 84.5%, and borrowing dependence dropped from 23.9% to 22.8%—the lowest levels since Q4 2018 and Q3 2018, respectively. However, while large enterprises’ debt ratio declined from 83.8% to 79.8%, SMEs’ debt ratio actually rose from 103.0% to 112.1%. SME borrowing dependence also increased from 30.7% to 31.1%.

Lee Mi-joo, head of the Bank of Korea’s Corporate Statistics Team, said, “Even excluding Samsung Electronics and SK Hynix, corporate revenue and operating margins are improving,” adding that “the overall trend shows improvement across all sectors without discrimination.”

Regarding the Q3 outlook, she said, “Based on solid AI investment demand, the semiconductor upcycle is expected to continue and domestic demand is projected to show recovery, so overall indicator improvement is expected to persist, centered on semiconductor manufacturing.” However, she cautioned that “uncertainty related to the Middle East conflict and U.S. tariff policy remains high, so we need to monitor developments closely.”