Posted on : Dec.19,2017 17:11 KST
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Operating profit ratios for large companies and partner businesses in semiconductor sector
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Operating profits remain comparatively low at partner businesses
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Operating profit ratios for large companies and partner businesses in semiconductor sector
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A “super-boom” for semiconductors gave the Samsung Electronics semiconductor division and SK Hynix record-high operating profit ratios of around 50% for the third quarter of this year – but the ratios for partner businesses remained in the low 10% range.
A comparison of operating profit ratio data since 2013 provided by FnGuide on Dec. 18 for Samsung Electronics, SK Hynix, and 37 semiconductor partner businesses showed partner companies for the two companies to have ratios around one-third as high. The Samsung Electronics semiconductor sector and SK Hynix scored record-high 3Q 2017 operating profit ratios of 50.02% and 46.10%, respectively, while partner companies averaged only around 12.55%. The list of partner companies comprised those of the two companies’ 48 partner businesses (as identified by the Ministry of Trade, Industry and Energy) that are listed and have publicly released performance data for 2013 to 2017.
“Semiconductors are an area where there are only two contracting businesses – Samsung Electronics and SK – so the issue of exclusive transactions leaving partner businesses in a subordinate position is severe,” explained Korea Institute for Industrial Economics & Trade senior research fellow Lee Hang-koo.
“Meaningful shared growth can only be achieved when this problem is addressed,” Lee said.
Samsung Electronics argued that it was “impossible to make any blanket statements.”
“They may be Samsung Electronics partner companies, but that doesn’t mean they supply only to us,” the company said.
By Choi Ha-yan, staff reporter
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