Samsung’s 2nd-half profit to approach N. Korean GDP

Samsung Electronics’ operating profit this year is expected to be around 50 trillion won ($44.6 billion).

The world’s largest maker of smartphones this week announced second-quarter operating income of 14.06 trillion, making the first-half total 24 trillion won.

As its second-half performance is likely to be better thanks to rising demand for memory chips and mobile phones, the consensus is that Samsung’s second-half profit will be more than 26 trillion won.

Some analysts even suggested that the figure will exceed 30 trillion won, approaching North Korea’s gross domestic product (GDP).

According to the Bank of Korea, North Korea’s GDP last year was 32 trillion won in real terms.

North Korea does not release economic data. But the South’s central bank publishes GDP data on North Korea yearly, based on information from state agencies such as the Ministry of Unification.

North Korea’s GDP is a small fraction of South Korea’s, whose national output stood at 1,508 trillion won last year.

“Samsung chalked up 29.24 trillion won in operating profit last year, which fell short of North Korea’s GDP,” a Seoul analyst said.

“But this year, its annual profit would surely surpass North Korea’s GDP for the first time ever. In fact, its second-half profit alone might be higher than the North’s GDP.”

Kiwoom Securities analyst Pak Yu-ak also presented a rosy outlook for Samsung’s businesses this year.

“The operating income from the semiconductor division is likely to be approximately 20 trillion won in the second half,” the analyst noted.

“Adding profits from other segments such as smartphones, home appliances and flat-panel displays, Samsung’s overall profit would be much bigger.”