Major companies post lower net

Korean companies posted lower net profit in 2014 compared to a year ago.

The combined net profit by 106 Korean companies included in the MSCI emerging market index retreated 2.2 percent in 2014 year-on-year, according to data compiled by IBK Securities.

Their net fell 3.1 percent in the first quarter, rose 4.2 percent and 1.1 percent each in the next two quarters, but sank 10.7 percent in the fourth quarter, data showed.

The weak performance bucked the global trend as companies in major economies, including the U.S., Japan, China and the Europe Union, saw their net profit rise from a year earlier.

Market watchers say Korean companies’ poor profitability cooled down investor sentiment, leading to a tumble of the local stock market in the global ranking. The Seoul bourse last year ranked at the bottom among the group of 20 major economies, just above Russia, the biggest loser, according to global research firm IEconomics.

Chemical, refineries and shipbuilders struggled under the prolonged demand slump in the face of fiercer competition with Chinese rivals and falling oil prices. Top market caps, including Samsung Electronics and Hyundai Motor, also grappled with shrinking global market shares in their mainstay businesses.