Overview
- Major financial groups reported results on Thursday and Friday, sending combined first-half net income for South Korea’s five biggest banks to a record 13.12 trillion won as brokerage and asset-management fees surged.
- Shinhan and KB each posted record or near-record Q2 results with Q2 net profits of 1.82 trillion won and 1.99 trillion won respectively, helped by higher interest income and strong non-interest fees.
- Hyundai Motor and Kia posted record quarterly revenue and vehicle sales but saw operating profit fall, with Hyundai’s Q2 operating profit down about 21% to roughly 2.85 trillion won and Kia’s operating profit down about 4.9% while Q2 net rose to 2.32 trillion won.
- A weaker won lifted converted export and parts makers’ earnings but increased local costs such as warranty provisions, and companies cited higher raw-material costs, a March supplier fire and U.S. tariffs as key reasons for margin pressure.
- Firms are responding with new model launches, local production shifts, higher R&D budgets and expanded shareholder-return plans, steps that could lift payouts to investors and reshape production and pricing for consumers in the second half.