South Korea Records Drop in Q2 Corporate Revenue
(MENAFN) South Korea's corporate revenue saw a decline in the second quarter, a trend attributed to the ongoing impact of U.S. tariffs, according to new data released by the Bank of Korea (BOK) on Wednesday.
For the April-June period, revenue for 12,962 manufacturers and 13,105 non-manufacturers—both of which are subject to external audit and exclude financial firms—decreased by 0.7% compared to the previous quarter. This follows a 2.4% growth in the first quarter, BOK reported.
Sales among manufacturers shrank by 1.7% in the second quarter, a stark reversal from the 2.8% increase seen in the first quarter. Meanwhile, non-manufacturers recorded a modest 0.3% increase in revenue, down from the 1.9% growth in Q1.
Corporate profitability also deteriorated. The operating profit margin, measured as a percentage of revenue, fell to 5.1% in Q2, down from 6.2% during the same period last year.
Manufacturers experienced a significant decline in their profit margin, which dropped from 7.1% to 5.1%, while the profitability ratio for non-manufacturers remained stable at 5.1%.
The debt-to-equity ratio for domestic firms stood at 89.8% for Q2, nearly unchanged from 89.9% in the previous quarter.
Bank of Korea's latest figures underline the pressures South Korea’s businesses are facing in light of global trade tensions, especially the persistent effects of U.S. tariffs on the economy.
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