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South Korean companies' earnings recorded a 20 per cent on-year gain in 2024 on increased exports of semiconductors, government data showed on Tuesday. 

The combined before-tax net profit of South Korean companies reached 181.9 trillion won ($123.9 billion) last year, up 20.6 per cent from 150.8 trillion won tallied in 2023, according to data compiled by the Ministry of Data and Statistics, reports Yonhap news agency.

The figure rebounded after declining for two consecutive years, the data showed.

The manufacturing sector, considered the backbone of the South Korean economy, posted a pre-tax net profit of 123.5 trillion won in 2024, up 29.7 trillion won, or 32 percent, compared to a year earlier.

"Corporate earnings were boosted by increased exports of semiconductors, as 2024 was a transitional year for artificial intelligence (AI)," Yoon Hee-cho, an agency official, said.

In line with such a trend, South Korean companies increased their spending on research and development (R&D), with related expenditures rising 21.4 per cent on-year to 97 trillion won.

The surveyed firms' combined sales reached 3,371.1 trillion won this year, up 5.2 per cent from the previous year.

The data, meanwhile, showed that 40.3 per cent of the polled firms, or 6,009 out of 14,922, held subsidiaries at home and abroad.

By country, China accounted for the largest share of 21.9 per cent, followed by the United States with 16.4 per cent and Vietnam with 11.8 per cent.

A total of 401 companies expanded into new business areas in 2024, with 54.9 per cent of them in the manufacturing sector.

Meanwhile, the South Korean government aims to distribute 3.5 million eco-friendly heating, ventilation and air conditioning (HVAC) systems in the country by 2035 as part of efforts to tackle climate change, officials said on Tuesday.

With the distribution of the systems, also known as heat pumps, the government expects to cut greenhouse gas emissions by 5.18 million tons, according to the Ministry of Climate, Energy and Environment.