Samsung estimated a record profit of $12.1 billion (around KRW 14 trillion) for Q2 2017, leapfrogging Apple’s numbers for the same period. The company’s consolidated sales stood at $53 billion (or KRW 60 trillion) for the second quarter of 2017, and a combined sales of $180 billion (or KRW 201.9 trillion) last year. Around 10% of its yearly revenue came from its home market Korea.
According to the company’s numbers, $18 billion of its combined sales posted last year came from Korea. This figure hasn’t changed over the past three years, but it was around 16% back in 2011. The North American market accounted for 34% of Samsung’s yearly revenue, while Europe and Commonwealth of Independent states accounted for 19% of the company’s sales. China accounted for 18% of the company’s yearly revenue.
The company’s global business expanded over the past few years, resulting in the drop of its revenue share from Korea. “While Samsung raked in sales mainly from overseas markets, its headquarters is still located in Korea, leading to higher tax payments. Samsung’s payment of taxes here is expected to grow sharply on the company’s record-high earnings and a hike on corporate taxes,” said an industry expert.
Samsung spent around KRW 8.9 trillion in taxes around the world, with 67% of it occurring in Korea. The combined amount of taxes saw a sharp increase from KRW 4.2 trillion that the company paid in 2011. The Korean government has been seeking to slap more taxes on large-sized companies to fund its welfare policies.