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Over half of midsize firms report profit decline in H1

Published: 20 Aug. 2025, 09:30 Updated: 20 Aug. 2025, 15:52

Members of small- and medium-sized enterprise associations rally outside the National Assembly in Seoul on July 31, 2024 urging lawmakers to delay the enforcement of the Serious Accidents Punishment Act for companies with fewer than 50 employees. [YONHAP]

A majority of midsized firms reported declines in operating profit in the first half of the year amid economic uncertainty, industry data showed Wednesday.

According to the data from corporate tracker CEO Score, 500 listed midsize firms posted a combined operating profit of 6.34 trillion won ($4.55 billion) in the January-June period, down 4.1 percent from 6.62 trillion won a year ago.

Sales, however, climbed 3.1 percent on year to 122.6 trillion won during the same period.

Out of the 500 firms, 269, or 53.8 percent, saw operating profit fall, while 60 firms, or 12 percent, remained in the black.

The information technology and electronics sectors suffered the steepest decline, with combined operating profit dropping 25 percent to 1 trillion won from 1.35 trillion won a year earlier.

The construction sector also struggled as its combined operating profit plunged 42.5 percent, or 222.3 billion won, from a year ago.

In contrast, the service sector recorded the strongest growth, with operating profit soaring 30.7 percent on year to 1.04 trillion won from 797.7 billion won.

"The IT and electronics sector was hit hard by sluggish demand driven by U.S. tariffs," said a spokesperson from CEO Score, adding that a prolonged economic slump weighed heavily on midsize firms' bottom lines.

Yonhap