SK Hynix Crowned New Profit King: Surpasses Samsung with 21.33 Trillion Won Profit Last Year

In a stunning turn of events that underscores the dynamic shifts in the global tech landscape, SK Hynix has dethroned its long-time rival, Samsung Electronics, to claim the crown in operating profit among South Korean listed companies. According to data compiled by the Korea CXO Institute, SK Hynix posted a stellar 21.33 trillion won (approximately $15.5 billion USD) in operating profit for 2024, marking a watershed moment for the memory chip giant.

The broader picture for the Korean corporate sector is equally robust. The combined operating profit of the country’s 1,000 major listed companies surged to a record 148.2865 trillion won ($108 billion USD), the highest level since the dawn of the new millennium in 2000.

This represents a significant rebound, with profits soaring by over 70 trillion won, a remarkable 92.7% increase compared to the 76.9245 trillion won registered in 2023. The recovery is largely attributed to a challenging 2023, a year that saw major players, including both Samsung Electronics and SK Hynix, grappling with operating losses, which ultimately drove overall profits below the 100 trillion won mark.

Following SK Hynix, Samsung Electronics, with an operating profit of 12.36 trillion won ($9 billion USD), secured the second spot. Other notable performers include Kia Motors (8.49 trillion won), Hyundai Motor (6.59 trillion won), and Hyundai Merchant Marine (3.48 trillion won).

While Samsung Electronics generated significantly higher sales revenue in 2024, reaching 209.05 trillion won compared to SK Hynix’s 55.74 trillion won, the CXO Institute highlighted a crucial point. “On a parent company basis, Samsung Electronics’ sales were nearly four times that of SK Hynix last year. However, SK Hynix’s operating profit margin reached 38.3%, decisively exceeding Samsung Electronics’ 5.9%,” the institute noted.

The CXO Institute further anticipates that, barring unforeseen circumstances, SK Hynix is well-positioned to maintain its leadership in operating profit in 2025. This places the onus on Samsung Electronics to strategize and execute plans aimed at strengthening its profitability in the latter half of the year, a critical move to reclaim its dominance.