The operating profits of South Korea's top ten business groups more than halved in the first six months of this year.<br />The slump is mostly attributable to the weak semiconductor market and trade tensions between the U.S. and China.<br />Kim Hyo-sun reports.<br />Major South Korean conglomerates suffered a major decline in their operating earnings in the first half of 2019.<br />According to market researcher Infobix,... the combined operating profits of 90 listed companies affiliated with the nation's ten largest business groups hovered around 17-point-5 billion U.S. dollars in the first six months of the year.<br />This is a staggering 53-point-5 percent decrease from a year earlier.<br />The operating earnings for the second quarter, in particular, plunged a whopping 63 percent on-year.<br />The market researcher points to weak global demand for semiconductors and the prolonged trade war between the U.S. and China as the main reasons for the drop.<br /><br />"The conditions facing the semiconductor industry would not be worse, but won't get better soon either. As the U.S.-China trade tensions escalate, conditions will not improve in the short-term."<br />Hanhwa Group saw the biggest plunge in operating earnings,... down 72-point-8 percent.<br />Samsung Group and Hanjin Group's operating earnings dropped 65-point-9 and 63 percent, respectively.<br />However, it wasn't all doom and gloom,... Hyundai Motor Group's operating profits jumped 38-point-6 percent,... thanks to strong demand for new models and the weak local currency.<br />As the above figures do not reflect the uncertainties caused by Japan's trade curbs and the pro-democracy protests in Hong Kong,... South Korean conglomerates are expected to face even more difficulties in the latter half of the year.<br />Kim Hyo-sun, Arirang News.<br />
