South Korean companies continued to suffer setbacks in their sales and profits in the second quarter amid slower economic growth and sluggish exports, central bank data showed Sept. 17.
In the April-June period, the average sales of local companies shrank 1.1 percent from the same period last year, according to the data from the Bank of Korea.
The reading marks a slowdown from a 2.4 percent on-year drop posted in the first quarter.
The central bank did not offer any reasons for the continued decline, but the country‘s exports that have dropped for nine consecutive months since December may be a major reason for the slump.
The quarterly report is based on a survey of 3,764 businesses that include 1,799 listed firms, selected from a pool of nearly 20,000 that are subject to external audits. They consist of 2,301 manufacturing companies and 1,463 nonmanufacturers.
The operating profit of all businesses surveyed came to 5.2 percent of their sales, sharply down from 7.7 percent the same period last year and from 5.3 percent posted three months earlier.
By Ram Garikipati and newswires (email@example.com)