Sales of domestic market companies fall in H1 as consumer spending slows

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Sales of domestic market companies fall in H1 as consumer spending slows

Published: 13 Nov. 2024, 10:17

The entrance of the Federation of Korean Industries in Seoul. [YONHAP]

Sales of domestic market-oriented companies saw an on-year decline in the first half of the year for the first time since 2020 due to sluggish consumer spending, a market analysis showed Wednesday.

According to a report released by the Federation of Korean Industries (FKI) on the business performance of 814 nonfinancial corporations required to submit financial reports, the total sales of companies increased by 6.7 percent in the January-June period from last year.

Sales of 194 export-oriented companies rose by 13.6 percent, but those of 620 local market-oriented companies saw a 1.9 percent decrease.

For domestic-oriented firms, it marked the first on-year decline in four years since 2020, when sales fell 4.2 percent. The FKI also noted that the figure for export firms would stand at a 5.9 percent drop when excluding the performance of Samsung Electronics.

Corporate investment also saw a decline for the first time since 2020, falling 8.3 percent in the first half, raising concerns about a potential weakening of the broader economic growth engine.

"Amid ongoing domestic sluggishness, global economic downturn and key industries, like semiconductors, entering a down cycle, there are rising fears that the current export performance may have already peaked," an FKI official said.

Yonhap