Seoul: Four out of 10 major companies in South Korea anticipate their export profits to decline from a year earlier in the second half of this year, a survey showed Friday.
According to Yonhap News Agency, the poll commissioned by the Federation of Korean Industries (FKI) and conducted by Mono Research, revealed that 38.7 percent of 150 companies with over 100 billion won (US$72.9 million) in annual exports each projected an on-year drop in export-related profitability. Only 14 percent expected a rise in profitability, while 47.3 percent said they anticipated little change from the previous year.
Companies in seven sectors, including car components, auto, machinery, petrochemical, and steel, were pessimistic about the second quarter. In contrast, firms in the semiconductor and shipbuilding industries remained optimistic. Respondents cited several challenges, including rising costs from U.S. tariffs, falling export prices amid intensifying global competition, and increased operational expenses.
When asked about the biggest risk factor in the second half, 53.3 percent pointed to U.S. President Donald Trump's trade policies, whereas an economic slowdown and prolonged U.S.-China tensions followed at 14 percent and 12.7 percent, respectively.