“Cars Awaiting Export”
The uncertainty caused by U.S. tariff measures has led to worsening financial conditions for 1 out of 2 exporting companies compared to the previous quarter.
According to a survey by the Korea International Trade Association, which targeted 500 companies with export performance of over $500,000, 46.7% of the responding companies reported that their financial conditions had worsened compared to the fourth quarter of 2024.
The main causes of this financial deterioration were sluggish sales and the rising cost of raw materials, each cited by 58.5% of the respondents. Other factors included rising labor costs at 35.4% and exchange rate fluctuations at 34.1%.
To maintain export competitiveness, companies suggested an optimal exchange rate of 1,344.9 won per dollar on average.
Regarding the 25% tariff on steel and aluminum items that took effect on April 12, 31.8% of exporting companies reported being directly impacted.
Companies revealed plans to address tariffs through cost reduction, utilizing policy financial support, and developing alternative export markets.