South Korean companies saw their profitability drop sharply over the last few years as a protracted economic downturn hit the country’s manufacturing sector and other segments hard, industry data showed Monday.

The ratio of net income to sales at South Korean firms came to 5.5 percent on average last year, far lower than the world’s average of 7.9 percent and emerging countries’ 5.9 percent, according to the data.

The country’s figure plunged below the world’s average level and that of emerging economies for the first time in 2013, posting the 5.5 percent ratio. In that year, the world’s average ratio stood at 7.7 percent with the figure for emerging economies being 6.1 percent.

In 2012, South Korea’s ratio hit 7.6 percent, slightly outnumbering the world’s 7.5 percent.

The data showed that over the 2012-2014 period, South Korean firms suffered a 2.9 percentage point drop in their net income to sales ratio, the second-largest fall among major 25 economies, following Chile with a 3.6 percentage point decline.

In contrast, the world’s average ratio improved by 0.2 percentage point over the cited period.

Japan marked the highest rise of 1.3 percentage points over the cited period, followed by Sweden with a hike of 1.1 percentage points, Malaysia with a 0.9 percentage point increase and the United States with a 0.8 percent gain.

“Amid the worldwide low-growth trend, major companies have managed to raise profitability by reducing costs, but South Korean companies have fallen behind,” said Yeom Dong-chan, a researcher at LIG Investment & Securities Co.

Experts noted that the sluggish corporate profitability is attributable to the manufacturing industry, the backbone of the South Korean economy, that has been drooping for years.

According to data compiled by LG Economic Research Institute, South Korean manufacturers’ operating income to sales ratio has been in a steady decline since it peaked at 8.4 percent on average in the 1970s. It further dropped to an average 7.3 percent in the 1980s, 7 percent in the 1990s and 6.3 percent in the 2000s.

The figure fell to a record low of 5.1 percent in 2012.

“Global companies are striving to improve their capability and new firms are emerging as major players in the field where South Korean companies have had a good grip,” said researcher Lee Han-deuk from the LGERI.

The sharp downturn in corporate profitability also has been one of the key reasons for sluggish moves on the local stock market, analysts said.

South Korea’s stock market delivered an 8.4 percent return over the 2012-2014 period, ranking 23rd among 25 surveyed countries.

The country’s benchmark stock index, the KOSPI, dropped 4.8 percent last year alone, becoming the second-worst performer among Group of 20 countries. (Yonhap)