If you look at Samsung Electronics and Hyundai Motor, South Korean companies do not appear to be feeling the pinch of Europe’s debt crisis and the slowing global economy. But a deeper look at the rest of corporate Korea tells a different story.

Despite the global economic slowdown, Samsung’s operating profit surged 79 per cent to $5.9bn in the second quarter on the back of booming sales of its smartphones while Hyundai Motor reported an 18 per cent jump in second-quarter operating profit to Won2.5tn. But excluding the two companies, combined operating profits of 129 listed Korean companies plunged 44.6 per cent in the second quarter from a year earlier and their combined net profits shrank 59.2 per cent, according to market researcher FnGuide. Continue reading »