South Korean conglomerates saw their sales in the US increase by around 20 percent last year, data showed Tuesday, but concerns have escalated as President Donald Trump's sweeping tariffs could undermine their earnings in the all-important market.
If Trump proceeds with tariffs as he has announced, sectors such as semiconductor, IT, electronics, pharmaceutical and bio-health companies are expected to take the biggest hit, according to corporate analysis firm Leaders Index.
Leaders Index analyzed 100 firms out of Korea’s top 500 companies that reported sales in the US between January to September, 2024.
The US sales of these 100 companies surged 19.5 percent, reaching 313.52 trillion won ($215.7 billion) in the first three quarters last year, up from 262.27 trillion won during the same period in 2023.
Their dependence on the US market also grew, with the ratio of US sales to overall sales increasing to 28.1 percent from 25.2 percent during the same period.
Particularly, the IT and electronics sector reported the sharpest growth, with sales from 12 major firms in the sector recording a 42.7 percent increase, from 80.06 trillion won to 114.25 trillion won in the US.
Chipmaker SK hynix led the growth, with its US sales tripling from 9.73 trillion won in the first three quarters of 2023 to 27.3 trillion won in 2024. The proportion of its US sales to the overall sales increased from 45.4 percent to 58.8 percent.
Samsung Electronics also reported strong growth, with its US sales increasing by 24 percent from 68.28 trillion won to 84.68 trillion won in 2024.
Amid rising energy demand on the artificial intelligence boom, power infrastructure firms saw their revenue hike in the US. Hyosung Heavy Industries' sales jumped 57.3 percent to 4.39 trillion won in 2024, while LS Electric posted a 12.3 percent increase to 7.69 trillion won in the same period.
The auto industry also witnessed robust growth, with sales of 23 automotive firms reporting a 13.2 percent increase to 129.44 trillion won last year.
Hyundai Motor and Kia drove the growth; Hyundai's sales in the region increased 17 percent to 57.38 trillion won in 2024, while Kia's sales rose 12 percent to 48.95 trillion won.
On Monday, Trump announced a 25 percent tariff on all steel and aluminum imported to the US. He also threatened to impose reciprocal tariffs on other countries within the next two days.
Trump has also floated the possibility of slapping tariffs on cars, semiconductors and pharmaceuticals, which could have substantial ramifications for Korean companies.
By Ahn Sung-mi (sahn@heraldcorp.com)
