Nearly four out of ten South Korean mid-sized companies anticipate a decrease in their export performance during the first half of this year compared to the previous year. Concerns are rising that a full-fledged trade war under the Trump administration could trigger an export crisis for these key players in the South Korean economy.

Key Points:

Export Decline Outlook: A survey by the Korea Federation of Middle-Sized Enterprises revealed that 38.7% of respondent firms expect a decline in exports.
Major factors contributing to this decline include the global economic slowdown, unfavorable exchange rates and financial conditions, and increased competition.
Export Growth Expectations: Conversely, 61.3% of firms expect export growth, but most anticipate only a marginal increase of less than 5%.
Although South Korea's exports saw a slight increase in February, the growth rate is expected to remain limited.
Export Challenges: Mid-sized firms cited intensified competition in local and global markets, import regulations, and trade barriers as major challenges.
They emphasized the need for expanded trade and export finance support, and reduced import tariffs on raw materials to boost exports.
Exchange Rate Outlook: These firms consider an appropriate exchange rate range for securing profits to be between 1,375 and 1,400 Korean won.
Policy Recommendations: The Korea Federation of Middle-Sized Enterprises stressed the importance of establishing effective support systems, including strengthened financial support and tariff reductions, to bolster the export drive of mid-sized companies.

[ⓒ Global Economic Times. 무단전재-재배포 금지]