S. Korean listed firms Q2 net expected to improve

SEOUL, June 7 (Yonhap) -- South Korea's listed companies' net income is expected
to rise sharply in the second quarter thanks to the local currency's
appreciation, an online financial information provider said Sunday.

The combined net profit of the nation's 111 listed companies by market value,
excluding financial firms, is forecast to triple to 8.74 trillion won (US$7
billion) in the second quarter, compared with 2.73 trillion won three months
earlier, according to Fn Guide.
Their total sales are predicted to advance 4.2 percent on-quarter to 16 billion
won during the same period, it said.
Operating profits are likely to gain a combined 68.3 percent to 9.8 trillion won
in the April-June period from the previous quarter.
"The South Korean won's second-quarter rise against the U.S. dollar reduced the
size of foreign-currency denominated debts of listed companies, improving their
net income," said Song Jae-hak, an analyst at Woori Investment Securities Co.
The South Korean currency rose to 1,256 won against the dollar in May from 1,440
won in February.
A stronger won makes South Korean exports more expensive, eating into exporters'
dollar earnings, while reducing their dollar denominated debts.
However, listed firms' net profits may worsen in the third quarter if the local
currency rises further against the greenback, analysts added.
ksnam@yna.co.kr
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