SEOUL (AFP) – South Korea’s top automaker Hyundai Motor yesterday posted a 48 percent drop in second-quarter net profit as China retaliated against South Korean exporters over a new US missile defence system.
For in depth analysis of Cambodian Business, visit Capital Cambodia
Hyundai reported net profit of 913.6 billion won ($814 million) in April-June, down from 1.764 trillion won a year earlier.
“Hammered by fallouts from THAAD, net profit has decreased,” the company said in a statement, referring to the US system known as Terminal High Altitude Area Defence (THAAD).
Seoul and Washington say the newly-installed system is intended to guard against missile threats from the nuclear-armed North.
But China strongly objects to the deployment, fearing THAAD’s radar will spy on its own ballistic capabilities and upset the regional security balance.
Sales in China plunged a whopping 64 percent year-on-year to 105,000 vehicles in the second quarter.
Worldwide, Hyundai sold 1.1 million cars including 182,000 in South Korea in the three months to June, down 13.8 percent year-on-year.