South Korean mid-sized firms report varied H1 earnings

South Korean mid-sized companies reported varied performance in the first half of the year, driven by overseas market expansion and cost-cutting measures. K-beauty leaders Kolmar Korea and Cosmax achieved record-breaking results, fueled by high demand for sun care and indie brands in global markets. Cosmax's US subsidiary also reported its first profit in the second quarter.

Other sectors showed different trends. KyungDong Navien saw a significant jump in operating profit due to strong North American sales and tariff refunds. In contrast, furniture companies like Hanssem and Hyundai Livart focused on expense management to defend profits amid a sluggish domestic construction market. Paper and household goods companies also improved margins through operational efficiency.

Despite these successes, companies expressed concern regarding exchange rate volatility for the second half of the year. While high exchange rates benefited exporters in the first half, the recent decline in the KRW/USD rate poses a risk to price competitiveness and profitability.