Corporate growth, profitability deteriorate in Q2 on US tariffs: BOK

Korean companies reported weaker overall growth and profitability in the second quarter due mainly to the impact of the United States' aggressive tariff scheme, the central bank said Wednesday. Combined sales of 26,067 companies subject to external audit fell 0.7 percent from a year earlier in the April-June period, reversing from a 2.4 percent on-year gain in the first quarter, according to data from the Bank of Korea (BOK). It marked the first time since the fourth quarter of 2023 that sales growth turned negative. Sales in the manufacturing sector declined 1.7 percent in the second quarter, compared with a 2.8 percent increase in the previous quarter, while sales growth in the non-manufacturing sector slowed to 0.3 percent from 1.9 percent over the same period. "Weak exports in the petrochemical industry affected the overall corporate growth. The U.S.' tariff hikes also had an impact on corporate performances, particularly steel and automakers," BOK official Moon Sang-yoon told a press briefing. "Though a tariff agreement has been reached, uncertainty remains high," he added. ProfitabilWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times