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Report cards for the fourth quarter of last year of major Korean companies have been released.

The global economy has subsided, which has led to earnings.

Samsung Electronics' operating profit decreased by 69% compared to the same period last year, and LG Electronics' operating profit decreased by a whopping 91%.

In both the semiconductor and display electronics industries, profitability deteriorated as inventories continued to accumulate.



Then, reporter Kim Kwan-jin covered whether this year would be a little better.



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Samsung Electronics' operating profit in the fourth quarter of last year was 4.3 trillion won.



It is the first time in eight years that quarterly operating profit has fallen below 5 trillion won.



Last year, Samsung Electronics sales exceeded 300 trillion won for the first time, recording the highest annual sales ever.



Although the size of the business has grown, the semiconductor industry has shrunk sharply since the third quarter, and profitability has retreated due to increased costs due to inflation.



[Lee Joo-wan/POSCO Research Institute Research Fellow: Because the production of set makers was sluggish, demand for semiconductors was bound to shrink, and since expectations for future market demand were lowered, there was no need to stock up on inventory, from the set makers.]



LG Electronics also posted annual sales of 83.4 trillion won, the highest ever, but profitability was extremely deteriorating.



It sold 21.9 trillion won in the fourth quarter, and the profit was 65.5 billion won, and it was a business with little left.



Inventories of both companies surged as sales of key products such as semiconductors, smartphones, and TVs were sluggish due to depressed consumer sentiment amid the prospect of an economic recession.



As of the third quarter of last year, both companies' inventory assets totaled 68.5 trillion won.



It's a vicious cycle that lowers prices to handle massive amounts of inventory, making it even less profitable.



For this reason, Samsung Electronics has maintained that there will be no artificial memory semiconductor production cuts, but the possibility of production cuts is being discussed in the industry.



High interest rates, reduced demand for products due to economic slowdown, and rising raw material prices due to high inflation are expected to continue throughout the first half of this year.



As the performance of major export companies continued to be sluggish, it is difficult to expect a turnaround in the short term for the trade balance, which recorded the largest deficit ever recorded last year.



(Video coverage: Foreground Bae, Video editing: Shin Se-eun)