Daegu's top 100 companies posted modest sales growth last year alongside sharp gains in operating and net profit, pointing to a broad improvement in profitability, according to a new survey.
The Daegu Chamber of Commerce and Industry said Monday that combined sales for the "Daegu Top 100" — companies headquartered in the region, ranked by individual sales — reached 39.9 trillion won ($25.8 billion) last year, up 2.8 percent from the previous year.
Operating profit rose 51.5 percent over the same period and net profit for the period climbed 15.8 percent, both far outpacing the sales growth rate.
By industry, manufacturing accounted for 54.9 percent of total sales, maintaining its role as the backbone of the local economy.
Wholesale and retail trade followed at 13.9 percent, with finance and insurance at 12.1 percent, construction at 6.1 percent, real estate at 4.8 percent, transportation and warehousing at 4.5 percent, electricity and gas supply at 3.2 percent, and facility management services at 0.6 percent.
Manufacturing in particular saw operating profit surge 150.3 percent year-on-year, driven by an earnings recovery at major firms in automotive parts, secondary battery materials and electronic components.
A narrowing of losses at L&F and improved earnings at Isupetasys, THN and SL Corp. led the overall profitability gains.
Finance and insurance also performed strongly, with operating profit and net profit for the period rising 37.9 percent and 35.9 percent, respectively, on the back of stable results from the region's leading financial institutions.
The real estate sector posted sharp gains in both sales and profitability as residential building development project results were reflected in earnings. Newly entered Pioneer Sangin recorded sales of 623.7 billion won, operating profit of 186.1 billion won and net profit for the period of 148.4 billion won, contributing significantly to the sector's improvement.
Construction turned profitable despite falling sales, as key companies recovered margins and narrowed losses. Transportation and warehousing, however, remained in the red despite higher sales, while wholesale and retail trade saw sales rise but profitability slip somewhat.
The number of loss-making companies grew by five to 24, and the number of firms with sales exceeding 1 trillion won increased by only one. The number of companies with sales above 300 billion won declined, raising concerns about slowing growth among local businesses.
By sector, manufacturing had the largest number of companies at 54. Facility management services and wholesale and retail trade each added two and one company, respectively, while construction and real estate each shed two and one company.
Among individual companies, iM Bank topped the rankings in sales, operating profit and net profit for the period, with iM Financial Holdings and SL Corp. also placing among the leaders in key categories.
A total of 15 companies newly entered the list — five in real estate, four in manufacturing, three in wholesale and retail trade, two in facility management services and one in construction.
"The profitability gains among the top 100 companies in 2025 reflect a combination of factors: improved earnings in manufacturing and finance and insurance, a recovery among the region's core companies, and the recognition of some housing development project results," said Lee Sang-gil, standing vice chairman of the Daegu Chamber of Commerce and Industry. "The rise in loss-making companies and the decline in top-revenue firms signal a weakening growth foundation, so we must strengthen the competitiveness of local businesses through support for AI and digital transformation and business restructuring."
kbj7653@heraldcorp.com
