South Korean Corporate Sales Rise 26.7% in Second Quarter

South Korean corporate sales growth accelerated in the second quarter, while profitability improved, led mainly by chipmakers and petrochemical companies. According to Sina Finance, data released by the Bank of Korea on Wednesday showed that corporate sales rose 26.7% year on year from April to June, far above the 13.5% increase in the previous quarter. The data were based on a review of 26,509 externally audited companies. Manufacturing sales rose 39.6% from a year earlier, up from 21.1% in the prior three months, mainly due to strong performance by chipmakers. Non-manufacturing sales increased 9.7%, accelerating from 3.7% in the first quarter. The ratio of operating profit to sales rose to 16.9% from 5.1% a year earlier, while the average debt ratio of companies fell to 84.5% from 87% in the first quarter.