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Number of firms suffering losses rises 3.2 pct in 2023

June 26, 2024

The number of companies that reported operating losses rose 3.2 percent on-year last year amid an economic slowdown, the tax agency said Monday.

A total of 1.03 million corporations filed corporate taxes last year, up 4.99 percent from a year earlier, according to the data by the National Tax Service (NTS).

It marked the first time that the figure surpassed the 1 million level.

Some 2,464 were listed companies, and the remainder were unlisted firms.

Of the total, the number of firms that reported profits rose 6 percent on-year to 652,000, and those suffering losses also gained 3.2 percent to 379,000.

The real estate sector and the food and accommodation field saw marked growth in the number of companies enjoying profits, while a larger number of health care-related firms and retailers logged losses last year.

The government collected 81.6 trillion won (US$58.69 billion) in corporate taxes in 2023, down from 87.8 trillion won a year earlier due mainly to weak performances by large firms amid the economic slowdown, the NTS said.

This file photo taken Feb. 21, 2023, shows buildings in Seoul. (Yonhap)
This file photo taken Feb. 21, 2023, shows buildings in Seoul. (Yonhap)