[Alpha Biz= Paul Lee] SEOUL, Aug. 24 – The earnings outlook for Korean listed companies is weakening as a majority face downward revisions for the third quarter, dampening expectations for a year-end rebound in the KOSPI index.



According to financial information provider FnGuide, out of 237 companies with earnings forecasts from at least three securities firms, 141 (60%) saw their Q3 operating profit estimates cut over the past three months, while only 96 companies recorded upward revisions.



SK Telecom posted the steepest downgrade, with its Q3 operating profit forecast slashed by 88% from KRW 497.3 billion to KRW 57.9 billion. Analysts cited mounting financial burdens from one-off costs following a massive hacking incident, including customer SIM card replacement, compensation for distributors, and ongoing customer support programs.



NCSoft recorded the second-largest downward revision, with estimates falling 86% to KRW 5 billion from KRW 34 billion three months earlier. Despite strong Q2 results, concerns over rising marketing expenses for upcoming game launches have weighed on expectations. Other companies facing sharp cuts include Nextin (-75%), Hanssem (-49%), Jusung Engineering (-48%), SK Inc. (-45%), and SoluM (-44%).



On the upside, a handful of firms saw brighter prospects. Battery material company Cheonbo’s Q3 operating profit estimate more than tripled, rising from KRW 900 million to KRW 3 billion. Kakao Pay’s forecast surged 88.2% to KRW 9.6 billion on continued strong growth in its financial services business. EcoPro BM also saw its estimate increase by 88.0%.



Analysts note that with more than half of listed companies facing reduced profit expectations, optimism for a significant KOSPI rally by year-end is waning.

 

 

 

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