The majority of companies cited the Trump administration's tariff policy as the biggest risk for the second half of the year. The Korea Business Association released a report on the 11th about its "2025 Second Half Export Outlook Survey," which includes these findings.
The survey was conducted by Mono Research, a market research company, and 150 of the top 10 exporting companies responded. According to the survey, exports by exporting companies in the second half of the year increased 10.5% compared to the same period last year.
Exports of steel are expected to fall by 5%, the largest decline, followed by other ships (down 2.5%), automobiles (down 0.6%), and semiconductors (down 1.6%).
Exports are expected to decrease in six industries, down 0.5%. Of the companies that responded that their exports will decrease in the second half of the year, roughly half cited "increased uncertainty about the trade environment, including tariffs" (45.
The majority of exporting companies (53.3%) cited the tariffs imposed by the Trump administration as the biggest export risk in the second half of the year.
The next most common reason given was government policies, followed by "stagnation of demand due to slow global growth" (14%) and "escalating trade friction between the United States and China" (12.7%).
92% of companies that responded to the survey said they would find it difficult to continue business if the U.S. tariff rate increases exceeded 15%.
Prior to this, the Trump administration announced on the 7th (local time) that it would maintain the 25% reciprocal tariffs on South Korea. The reciprocal tariffs will go into effect on the 1st of next month.
Tariffs of 25% on automobiles and parts, and 50% on steel and aluminum have already been put into effect. Companies are reducing costs (33.7%) as a response to the increase in US tariffs.
%), adjusting export prices (33.2%), and expanding local production (14.7%). The number of people who said they had no special measures reached 14.2%.
In order to strengthen their export competitiveness, companies have taken advantage of trade agreements to ease tariff burdens (37%), reduce corporate taxes, and provide investment credits.
"The US tariff policy and the low global trade policy are the main reasons for the need for exports," said Lee Sang Ho, head of the economy and industry bureau at the Korea Economic Association.
"The stagnation of demand due to growth is expected to continue for the time being," he said, adding, "We need trade agreements that reflect the advantages of domestic export companies, diversification of export regions, and institutional support through improved export competitiveness."
"It is," he said.
2025/07/11 07:02 KST
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