Korea's biggest corporation Samsung is considering a massive restructuring plan amid fears of more disappointing earnings in the third quarter.
"We thought that July's sales performance was the worst, but it was even worse in August," a Samsung executive said. "It's likely that operating profits will drop to a little over W5 trillion in the third quarter." (US$1=W1,014)
The operating profit of Samsung Electronics, the conglomerate's largest subsidiary, was forecast at a dismal W5.9-7 trillion in the third quarter.
If that proves accurate, Samsung Electronics will see its operating profits nearly halved from W10.2 trillion in the third quarter of last year.
Leading conglomerates in other sectors such as SK Innovation, Hyundai Heavy Industries and POSCO are also considering restructuring amid a growing sense of crisis.
This is likely to have a negative effect on many other businesses that are struggling to emerge from the recession.