Growth of Listed Mid-sized Companies Weakens in Second Quarter Compared to Last Year

Korea Federation of Mid-sized Enterprises Announces Results of "Management Analysis of Listed Mid-sized Companies for the Second Quarter of 2025"

It has been found that the growth of listed mid-sized companies weakened in the second quarter of this year compared to the same period last year.

The Korea Federation of Mid-sized Enterprises announced the results of its "Management Analysis of Listed Mid-sized Companies for the Second Quarter of 2025" on October 16. This analysis was conducted based on the financial information of 992 listed mid-sized companies, as of the 2023 year-end settlement, covering the period from the second quarter of 2024 to the second quarter of this year.

According to the analysis, the sales growth rate (0.9%) and total asset growth rate (2.1%), which are indicators of the growth of mid-sized companies, fell by 2.8 percentage points and 4.4 percentage points, respectively, compared to the same period last year. In the manufacturing sector, the sales growth rate decreased by 0.7 percentage points to 1.4%, and the total asset growth rate dropped by 4.4 percentage points to 2.8% due to a decline in current assets. In the non-manufacturing sector, the sales growth rate was -0.2%, down 7.9 percentage points from the same period last year, while the total asset growth rate was 0.8%, a decrease of 4.1 percentage points.

The profitability indicators of listed mid-sized companies also declined in the second quarter. The operating profit margin was 6.2%, down 0.1 percentage points from the same period last year, and the pre-tax net profit margin was 6.1%, a decrease of 2.1 percentage points, due to declines in interest income, dividend income, and foreign exchange gains resulting from exchange rate fluctuations. In the manufacturing sector, the operating profit margin rose by 0.1 percentage points to 5.9%, while the pre-tax net profit margin fell by 2.1 percentage points to 5.6%. In the non-manufacturing sector, the operating profit margin decreased by 0.4 percentage points to 7.1%, and the pre-tax net profit margin dropped by 2.0 percentage points to 7.4%.

The debt ratio of listed mid-sized companies was 65.4%, a decrease of 1.1 percentage points compared to the same period last year, while the dependence on borrowings increased by 0.1 percentage points to 13.4%. In the manufacturing sector, the debt ratio decreased by 0.7 percentage points to 66.6%, and in the non-manufacturing sector, it dropped by 1.8 percentage points to 63.0%. The dependence on borrowings in the manufacturing sector decreased by 0.1 percentage points to 13.8%, whereas in the non-manufacturing sector, it increased by 0.6 percentage points to 12.5%.

Lee Hojun, Executive Vice President of the Korea Federation of Mid-sized Enterprises, stated, "The trend of listed mid-sized companies reducing their debt ratios and strengthening financial soundness amid weakening profitability and growth reflects concerns about an unstable economic environment, such as the unpredictable outcome of US tariff negotiations." He added, "To establish an irreversible foundation for 'genuine growth,' it is essential to focus on pragmatic diplomacy to solidify the stability of the trade environment through APEC, and to drive more active investment and innovation by mid-sized companies, including those in the non-manufacturing sector, through forward-looking financial support such as establishing a dedicated credit guarantee fund account for mid-sized companies and expanding guarantee limits."