Operating margin

Operating profit as a share of revenue — what the core business keeps from each sale.
Also known as: Operating profit margin

What it is

Operating margin divides operating profit by revenue, showing what is left after cost of goods and SG&A.

Formula

Operating margin = operating profit ÷ revenue × 100%. KRW 120 billion of operating profit on KRW 1 trillion of sales is a 12% margin.

What to keep in mind

Rising sales with a falling margin can signal cost pressure or price competition. Normal levels vary widely by industry.

This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.