Major Korean companies suffer lower profits due to slowing global economy
Major Korean companies suffer lower profits due to slowing global economy

Slower growth in the global economy has had a considerable impact on major Korean companies. According to the results of the first half of the current year, the total profit of the top 10 companies in South Korea has been more than halved compared with the same period last year. First of all, local tech giants were the first to suffer. The operating profits of the top 10 corporations in the country came to 21.3 trillion won ($17.6 billion) in the January-June period, down by 54 percent from 45.8 trillion won last year, the data from the industry tracker Infobigs showed. Samsung Electronics registered a drop in its operating profit by as much as 61.13 percent. However, the second-largest chipmaker SK Hynix even exceeded Samsung in losses, having fallen by 83.93 percent. The management of the two companies cited a significant price decline in their memory chips and the continuing global economic slowdown as the main reasons for such a sharp collapse. Besides, the export restrictions imposed by Japan as well as the trade war between the United States and China also negatively affected earnings. Chemical and aviation firms complained about lower profits as well. In the first half of the year, LG Chem lost 62 percent from the corresponding period last year. Hanwha Chemical saw its profit decline by 72 percent, while Hanjin Group, the parent company of Korean Airlines, decreased by 63 percent. However, Korean automakers, on the contrary, significantly extended their gains. In the January-June period, the operating profit of Hyundai Motor Group grew by 39 percent year-on-year thanks to the weak local currency and advanced sales of new car models.

Published: 2019-08-30 11:03:25 UTC
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