A resurgent global semiconductor market has turbocharged cash generation at South Korea’s largest companies, with free cash flow soaring by more than $15 billion in the first nine months of the year.
According to data from corporate research firm CEO Score, the country’s top listed non-financial companies posted a combined free cash flow of $47.4 billion in the January–September period, a 42% jump from $33.4 billion a year earlier. The increase was driven overwhelmingly by the country’s memory-chip champions, Samsung Electronics and SK Hynix, which have benefited from surging demand and firming prices.
Across the 237 firms analyzed, operating cash flow climbed 24.5%, while capital expenditures rose 14.2%—still leaving corporate coffers significantly fuller than a year ago. More companies saw improvement than deterioration: 127 posted higher free cash flow, compared with 110 that recorded a decline.
Samsung Electronics generated the largest cash pile, with free cash flow reaching $12.9 billion, up 42.6% from the prior year. SK Hynix saw the most dramatic surge, nearly doubling its operating cash flow and boosting free cash flow 138.6% to $9.6 billion. Other industrial heavyweights, including Kia, Korea Gas Corp., HD Hyundai Heavy Industries, Korea Electric Power Corp. and Hyundai Mobis, also reported multibillion-dollar cash reserves.
Not all shared in the bounty. Hyundai Engineering & Construction, LG Energy Solution, Doosan Enerbility and LG Display each reported free cash flow deficits exceeding $1 billion. In year-on-year terms, Hyundai Motor suffered the sharpest drop—a 72% plunge—which the company linked to delays in key tariff negotiations. Hyundai Engineering & Construction, SK Telecom and Kia also posted reductions of more than $1 billion.
Sector performance highlighted a stark divide. The IT and electronics industry, powered by chipmakers, posted a 96% surge in free cash flow, mirroring the powerful semiconductor upcycle. In contrast, the automotive and auto-parts sector registered the largest decline of any industry.
The semiconductor recovery is having a clear spillover effect on corporate balance sheets,” CEO Score noted, adding that reinforced cash positions are already fueling more active investment plans among the country’s largest firms.
