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Companies' Q3 earnings vary widely, losses in auto and telecom sectors

Published: 10 Oct. 2025, 07:00

Export cargoes are piled up at the Pyeongtaek Port in Gyeonggi on Oct. 1. [YONHAP]

As the Chuseok holidays come to an end, Korea's major companies are preparing to release their third-quarter earnings with expectations varying widely by sector, much like the recent swing between hot and chilly weather.

The outlook is bright for the semiconductor industry, one of Korea’s core sectors. According to market tracker FnGuide on Thursday, Samsung Electronics is expected to post an operating profit of 9.89 trillion won ($7 billion) for the July-September period. The company is rebounding from its second-quarter low, and some analysts even predict that it could return to the 10-trillion-won range in operating profit. Alongside solid mobile performance, the recovery of the semiconductor division — particularly due to dynamic random-access memory — is driving the upturn.

The fourth-quarter forecast also looks promising for the chipmaker. Nvidia CEO Jensen Huang recently sent a letter to Samsung Electronics Executive Chairman Lee Jae-yong, stating the company plans to use Samsung’s HBM3E high-bandwidth memory in its next-generation AI accelerators.

“Samsung is expected to enter a long-term earnings upcycle for the first time in nine years since 2016,” said Kim Dong-won, an analyst at KB Securities, adding that Samsung may benefit directly from Nvidia’s planned diversification of HBM4 suppliers in 2026.

SK hynix, the biggest beneficiary of Nvidia’s orders so far, is forecast to post an operating profit of 10.83 trillion won, up 54.1 percent from a year earlier.

The so-called supercycle continues for the big three shipbuilders — HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries and Hanwha Ocean — all of which are projected to report strong earnings. HD Hyundai Heavy Industries is expected to post an operating profit of 470 billion won, a 132.6 percent year-on-year increase. Hanwha Ocean's third-quarter consensus stands at 350 billion won, up a staggering 1,296.4 percent from a year earlier.

LG Display is forecast to return to the black for the first time in four years with an operating profit of 410 billion won. Park Kang-ho, an analyst at Daishin Securities, explained that “cost-cutting efforts such as shutting down its loss-making LCD panel business helped turn things around.”

But analysts warn against being misled by some sectors' strong performances — particularly semiconductors, which account for around 30 percent of the total operating profit of all companies listed on the Korea Exchange.

The auto sector, hit hard by the 25 percent tariff imposed by the United States, is expected to take a hit. Hyundai Motor’s third-quarter operating profit is projected at 2.67 trillion won, down 25.2 percent from the same period last year and the lowest level since the third quarter of 2022.

U.S. President Donald Trump holds a ″Foreign Trade Barriers″ document as he delivers remarks on tariffs in the Rose Garden at the White House in Washington on April 2. [REUTERS/YONHAP]

“Hyundai was able to rely on inventory through the second quarter, but it now has to fully absorb the tariff burden, except for vehicles produced in the United States,” said Kim Sung-rae, an analyst at Hanwha Investment & Securities.

LG Electronics is also struggling under the pressure from tariffs and weakening global demand. Its operating profit for the third quarter is expected to reach 600 billion won, down 20.1 percent from a year earlier. Among the country’s three major battery makers, Samsung SDI and SK On are projected to remain in the red for the third quarter, with only LG Energy Solution likely to stay profitable.

The telecom sector has been hit by recent hacking scandals, and the combined third-quarter operating profit for SK Telecom, KT and LG U+ is expected to fall below 1 trillion won. SK Telecom’s operating profit figure has shrunk to a projected 40 billion won — a 91.5 percent year-on-year plunge.

Third-quarter earnings go beyond just another set of quarterly results. With U.S. tariffs now in full effect, they serve as a critical gauge of Korean exporters' competitiveness under Trump-era trade policies.

“The Korean government must secure the best possible outcome in tariff negotiations with the United States, even if it takes time, while companies should diversify export markets and cut costs to weather tariff-related uncertainties,” said Chang Sang-sik, the head of the Korea International Trade Association’s research arm.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KI-HWAN [[email protected]]