Midsize Firms See Profit Squeeze Despite Rising Sales | Be Korea-savvy

Midsize Firms See Profit Squeeze Despite Rising Sales


A view of downtown Seoul with clusters of corporate buildings. (Yonhap)

A view of downtown Seoul with clusters of corporate buildings. (Yonhap)

 

SEOUL, Aug. 20 (Korea Bizwire) — More than half of South Korea’s midsize listed companies saw profits fall in the first half of 2025, as global economic uncertainty and weakening demand weighed on key sectors, new data show.

Combined operating profit for 500 midsize firms came to 6.34 trillion won ($4.55 billion) in the January–June period, down 4.1% from a year earlier, according to corporate tracker CEO Score. Sales rose 3.1% to 122.6 trillion won, underscoring a widening gap between revenue and profitability.

Of the companies surveyed, 269—or nearly 54%—reported a decline in operating profit, while 60 remained in the red.

The information-technology and electronics sector posted the sharpest decline, with operating profit tumbling 25% to 1 trillion won from 1.35 trillion won a year ago. Construction also faltered, as profit slid 42.5% to 222.3 billion won.

The service sector offered a bright spot, with operating profit surging 30.7% to 1.04 trillion won.

“The IT and electronics sector was hit hard by sluggish demand driven by U.S. tariffs,” a CEO Score official said. “A prolonged economic slump continues to weigh heavily on midsized firms’ bottom lines.”

M. H. Lee (mhlee@koreabizwire.com)

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