South Korean companies widened their operating margin to 5.2 percent in 2025, yet 42.9 percent earned less than their interest bill

Nearly 43 percent. That is the share of South Korean companies paying interest whose operating profit in 2025 fell short of the interest itself, according to the Bank of Korea's annual business analysis released Wednesday, a hair above 42.8 percent a year earlier.

The aggregate looked healthier. Across 982,767 nonfinancial companies drawn from corporate tax filings, sales grew 2.4 percent, down from 3.7 percent, while the operating margin widened to 5.2 percent from 4.6 percent and the debt ratio fell to 116.2 percent from 119.9 percent.

Two industries did most of it.

Makers of electronic, video and communications equipment earned an operating margin of 14.0 percent, up from 8.3 percent, and shipbuilders reached 11.6 percent from 6.4 percent. Large companies improved to 6.7 percent. Small and medium firms slipped to 2.8 percent from 3.0 percent, and 34.4 percent of firms paying interest ran an operating loss.