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South Korea's 2026 Corporate Earnings to Rise, But Industry Gaps Widen

A report from NICE Investors Service forecasts improved sales and operating profits for major South Korean companies in 2026. Growth is expected to be led by robust performance in chipmaking, power supply, and electronics sectors. However, the credit rating agency warns that discrepancies will widen, with industries like automobiles facing potential downward pressure from U.S. trade barriers and competition. Meanwhile, the South Korean stock market rallied strongly, with the KOSPI index surpassing 4,400 points driven by semiconductor and tech stocks.

Key Points: S. Korea 2026 Corporate Earnings Forecast: Growth & Discrepancies

  • Earnings index up 5.6%
  • Operating profit index up 7.8%
  • Chipmakers lead growth
  • Auto sector faces US pressure
  • KOSPI rallies on tech stocks
2 min read

S. Korean corporate earnings to improve in 2026, discrepancies to widen

NICE report forecasts improved earnings for major S. Korean firms in 2026, led by chips & tech, but warns of widening gaps and pressure on autos.

"Sectors, such as cars, could see their demand in the U.S. weaken and competition worsen - NICE Investors Service"

Seoul, Jan 5

Earnings of major South Korean companies are expected to improve this year, but discrepancies between industries are likely to widen, a local credit rating firm said on Monday.

The 'NICE Sales Index', which is calculated based on the 2026 sales estimates of 78 companies, came to 163.3 this year, up 5.6 percent from the previous year's figure, NICE Investors Service Co. said in its report, reports Yonhap news agency.

The NICE Industry Operating Profit Index, which uses earnings before interest and tax (EBIT) estimates for the companies, came to 10 percent, up 7.8 per cent from a year earlier.

The credit rating agency said robust growth of local chipmakers, power suppliers and electronics producers is expected to lead overall growth, amid the United States' effort to exclude China from taking part in its artificial intelligence supply chain.

But industries that are key to the U.S. economy, such as automobiles, could come under downward pressure, it added.

"Sectors, such as cars, could see their demand in the U.S. weaken and competition worsen, amid rising trade barriers and fading effects from pre-tax demands," the agency said in the report.

Meanwhile, South Korean stocks extended gains late on Monday morning on the back of a rally in semiconductor and other tech stocks.

The benchmark Korea Composite Stock Price Index (KOSPI) added 112 points, or 2.6 percent, to 4,421.63 as of 11:20 a.m.

The KOSPI opened higher to trade at over 4,400 for the first time despite a mixed close on Wall Street.

On Friday (U.S. time), the Dow Jones Industrial Average rose 0.66 percent to 48,382.39 points, while the tech-heavy Nasdaq Composite fell 0.03 per cent to 23,235.63.

Foreigners bought a net 872 billion won (US$602 million) worth of local stocks, offsetting institutions' and individuals' selling of 318.16 billion won and 550.9 billion won, respectively.

- IANS

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Reader Comments

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Priya S
The KOSPI hitting over 4400 is impressive! 🚀 It shows how crucial the semiconductor sector is. In India, we should take notes on fostering such high-growth tech industries. However, the widening discrepancy between industries is worrying – it shouldn't just be chips carrying the entire economy.
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Rohit P
"Automobiles could come under pressure" – this is a direct result of rising trade barriers. As an Indian, I see parallels. Our auto sector also faces challenges. Protectionism might help some industries but hurts others. Global trade needs more stability, not less.
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Sarah B
Foreign investors buying net $602 million worth of stocks is a huge vote of confidence. It highlights how geopolitical shifts (US excluding China from AI chains) are redirecting global capital. India must position itself as the most stable and attractive alternative destination for such investments.
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Vikram M
While the overall growth is good, the report rightly points out the risks for sectors like automobiles. This uneven growth can create social and economic stress. Policy makers need to think about balanced development, not just chasing the hottest sector. A valuable lesson for our planning as well.
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Nikhil C
The numbers look strong on paper, but let's be honest, these are just estimates for 2026. A lot can change in two years. I feel these credit rating reports often create a herd mentality. We need more cautious optimism. 👍

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