Total sales of South Korean companies dropped on-year for the first time ever in 2014 due to weak manufacturing sector growth, a government report showed Tuesday.
  

According to the report by Statistics Korea, the combined sales of 12,125 companies checked reached 2,231 trillion won ($1.93 trillion) last year, down 26 trillion won, or 1.2 percent, from 2013. The companies had more than 50 regular workers and had a paid-in capital of more than 300 million won.
  

The numbers exclude financial and insurance firms and marks the first time that sales figures declined on-year since the statistical office started compiling related data in 2006.
  

"Decreased sales by manufacturers that account for a large percentage of the national total offset gains in retail and wholesale, hospitalities and miscellaneous services," the agency said. "Average sales posted by each company fell by 4.8 billion won vis-a-vis 2013 to 184 billion won."
  

Manufacturing firms make up 47.8 percent of all companies checked and hired 47.6 percent of the workforce.
  

The report, however, showed net earnings before corporate taxes rose 5.9 percent on-year to 94 trillion won last year.
  

Despite weaker overall sales, the statistical office said the number of companies, including financial firms, grew 1.4 percent to 12,401, with these companies employing 4.3 million workers, up 75,000 from the previous year.
  

Of the companies checked, 27.4 percent, or 3,393, did business abroad, with 22.9 percent saying they had foreign affiliates. China, the United States and Vietnam were the top three destinations for foreign affiliates and branch offices by local companies last year.
  

Their combined outlays in research and development reached 43.6 trillion won in 2014, up 1.9 percent on-year. Of the total, manufacturers accounted for 86.7 percent with businesses pumping large sums into electronics, related parts and information technology areas, according to the report. (Yonhap)