Despite the pandemic, South Korean chipmaker SK hynix and automaker Hyundai Motor both saw an earnings surprise in the second quarter.
The world's second largest memory chip maker, SK hynix said on Thursday that its quarter two operating profit came to around 1.6 billion U.S. dollars.
That's more than triple the same period last year.
This figure was driven by increased demand for the IT products people have been using during lockdowns but also from IT companies stockpiling memory chips.
The company also attributed its success to improved yield rates which lowered costs.
Hyundai Motor, South Korea's leading automobile manufacturer, also saw a profit despite poor global market conditions.
Hyundai Motor saw an operating profit of around 490 million dollars, which was lower than a year ago but much higher than market expectations.
This was thanks to higher sales in the local market.
"The government has been trying to reduce the special consumption tax for automobiles to boost spending, and automobile companies also had sales promotions. So the sales for both domestic cars and imported cars increased."
While companies saw better results than expected, there's still uncertainty due to the on-going pandemic and global market conditions.
For SK hynix, demand is likely to fall as many IT companies have now acquired sufficient stockpiles already while the U.S.-China trade war could take its toll on the market.
Also for Hyundai Motor, the tax benefit has been reduced and the firm cannot continue large sales promotions for too long, which could reduce consumption in the third quarter.
Kim Sung-min, Arirang News