Korean Industry Briefing — Week of 31st July 2026

1. Semiconductors

SK Hynix delivered its best-ever quarterly results on 29th July, reporting second-quarter revenue of 79.3 trillion won and operating profit of 60.5 trillion won — surging 256.8% and 557.2% respectively from a year earlier. The company began mass shipments of its HBM4 high-bandwidth memory in the second quarter and signalled a significant ramp-up in the second half of the year. Samsung Electronics followed on 30th July, confirming second-quarter revenue of 171.5 trillion won and operating profit of 89.5 trillion won; its semiconductor division (DS) achieved an operating margin of nearly 70%. Both stocks surged on 31st July: SK Hynix hit the daily trading limit (a 30% ceiling imposed by the Korea Exchange), while Samsung Electronics rose by roughly 25%.

2. Circuit Boards

LG Innotek reported record quarterly earnings on 27th July, with second-quarter revenue of 5.53 trillion won (up 41% year-on-year) and operating profit of 245.8 billion won — a 2,057% increase. Its Package Solutions division, which produces high-value semiconductor substrates including FC-BGA and RF-SiP products for advanced chip packaging, posted revenue of 498.4 billion won, up 19.8%. Samsung Electro-Mechanics disclosed second-quarter revenue of 3.46 trillion won (up 24%) and operating profit of 440.4 billion won (up 107%) on 30th July, attributing the improvement to rising demand from AI servers, data centres, and automotive electronics.

3. Internet Platforms

Ahead of their second-quarter earnings releases on 29th July, Naver and Kakao — South Korea's two dominant internet groups — drew divergent market expectations. Analysts forecast solid growth at Naver, projecting revenue of 3.37 trillion won (up 15.6%) and operating profit of 567.4 billion won (up 8.8%). Kakao was expected to hold its ground more modestly, with revenue of 2.04 trillion won (up 0.8%) and operating profit of 223.9 billion won (up 9.8%). The pace at which both companies can monetise their AI products will be the key variable for their share prices in the second half.

4. Renewable Energy

Hanwha Solutions, the energy arm of the Hanwha conglomerate, reported preliminary second-quarter revenue of 4.58 trillion won (up 47%) and operating profit of 306.5 billion won (up 200%) on 29th July, extending its run of profitability to two consecutive quarters. The renewables division contributed revenue of 2.48 trillion won and operating profit of 166.4 billion won, driven by higher selling prices and stronger volumes in solar products.

5. Defence

Three South Korean defence contractors — Hanwha Aerospace, Hyundai Rotem, and LIG D&A (a subsidiary of LIG Nex1) — are competing for a contract to develop a long-range air-to-air missile for the domestically developed KF-21 fighter jet, according to reports on 28th July. The contract runs from December 2026 to November 2033, making it an eight-year major weapons-development programme in which the three companies' capabilities in guided munitions and propulsion systems will be directly tested against one another.

6. Nuclear Power

Doosan Enerbility flagged a positive earnings outlook for the second half of the year on 27th July, citing expectations of demand equivalent to six new nuclear reactors from the domestic market alone. The company sees visible order growth both at home and abroad across its full portfolio of large-scale nuclear reactors, small modular reactors (SMRs), and gas turbines.

7. K-Pop

South Korea's four largest music entertainment companies — HYBE, SM Entertainment, YG Entertainment, and JYP Entertainment — are pursuing the establishment of a joint venture for a global K-pop festival, to be called FANOMENON, under the leadership of producer and JYP founder Park Jin-young. As of 28th July, the proposed tie-up was under review by the Korea Fair Trade Commission, which must clear the merger before the venture can proceed.

8. Retail

South Korea's retail sector entered the second-quarter earnings season in broadly optimistic mood, according to reports on 24th July. Emart, the country's largest supermarket operator, was forecast to post revenue of 7.15 trillion won (up 1.6%) and operating profit of 67.3 billion won (up 211.6%). The combined revenue of three department store groups — Shinsegae, Hyundai Department Store, and Lotte Shopping — was projected at 6.41 trillion won (up 4.7%), supported by strong sales of luxury goods and fashion, as well as a surge in spending by foreign visitors.