61.5% of Mid-Sized Companies Expect Export Performance to Decline in the Second Half Compared to Last Year

Concerns Mount over Export Decline among Mid-Sized Companies
Tariff Burdens and Global Slowdown Identified as Main Risks
Calls Grow for Expanded Trade Finance and Policy Support

As reciprocal tariffs with the United States become a reality and itemized tariffs on steel and aluminum derivatives are expanded, concerns are mounting among mid-sized companies about reduced exports.

On September 1, the Korea Federation of Middle Market Enterprises announced the results of its "Export Outlook and Difficulties Survey for the Second Half of 2025," revealing that 61.5% of mid-sized companies expect exports to decline in the second half of this year compared to the same period last year. This figure represents a 22.8 percentage point increase from the survey conducted in the first half of the year. The survey was conducted from July 29 to August 12 among 200 mid-sized companies in major export sectors.

Mid-sized companies forecasting a deterioration in export performance for the second half cited "global economic slowdown (67.5%)" and "increased tariff burdens (53.7%)" as the main factors. In preparation for worsening export performance, respondents indicated that they are seeking strategies such as "diversifying export destinations (55.3%)," "improving quality and adjusting prices (35.8%)," "expanding the share of domestic sales (35.0%)," and "launching new products (20.3%)."

Regarding international issues expected to have the greatest impact on future export strategies, "changes in U.S. trade policy, laws, and systems (49.5%)" ranked highest, followed by "volatility in the Chinese market (19.0%)" and "intensifying U.S.-China competition and supply chain restructuring (10.5%)." For improving the trade environment, respondents emphasized the need for policy efforts such as "restoring the multilateral trade system and strengthening responses to protectionism (46.5%)," "supporting the transition of domestic mid-sized companies to exporters and connecting them with specialized trading companies (15.5%)," and "shifting to a technology- and value-added-centered trade structure and expanding exports of services and consumer goods (10.5%)."

Mid-sized companies also cited as top policy priorities for revitalizing exports: "expanding trade and export financing support (47.0%)," "lowering import tariffs and supporting stable supply of key raw materials and parts (24.5%)," and "supporting logistics-related costs and infrastructure (14.0%)."

Lee Hojun, Executive Vice Chairman of the Korea Federation of Middle Market Enterprises, stated, "Although some uncertainties have been resolved through the conclusion of the Korea-U.S. reciprocal tariff negotiations and the summit meeting, it remains difficult to be optimistic about export prospects due to the undeniable increase in tariff burdens, the global economic slowdown, and supply chain restructuring." He added, "In addition to companies' own efforts, the government should proactively strengthen support by expanding trade finance, lowering tariffs on raw materials, and supporting logistics infrastructure. By establishing a robust public-private cooperation system, we must enhance the industry's overall capacity to respond to the changing trade environment."