June 12, 2020 13:09
Korea's top 5 companies rely for an alarming proportion of their revenues on overseas sales, which have been eviscerated by the coronavirus epidemic.
Hyundai sold 217,510 cars last month. But while domestic sales increased 4.5 percent on-year, overseas sales plummeted 49.6 percent, resulting in overall sales dropping 39.3 percent.
The Korea Economic Research Institute in a report out Thursday showed that the high reliance of Korean companies on overseas sales makes them even more vulnerable to declining global demand.
According to KERI, overseas sales account for an average 70.6 percent of total revenues at Korea's top 5.
Export conditions are dire. Business sentiment among exporters fell from an average 94.7 points in 2019 to 84.7 points during the first quarter of this year and averaged just 69.9 points in April and May.
A reading of less than 100 means pessimists outnumber optimists.
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