The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'

  • 3

    SHINee launches first Japan tour in 5 years

  • 5

    Korea makes last-ditch bid to host World Expo 2030 in Busan

  • 7

    Heavy traffic jams mostly eased on 5th day of holiday

  • 9

    Consumers to face higher prices for daily necessities after Chuseok

  • 11

    Samsung chief visits Middle East to explore new businesses

  • 13

    Korea picks up 2 medals in table tennis as gold drought continues

  • 15

    Ruling party vows to investigate China's alleged influence operations

  • 17

    Shin-Hanul No. 2 nuclear reactor begins testing for full operation next year

  • 19

    4 injured in rockfall at tourist attraction on eastern island of Ulleung

  • 2

    Korea's Coast Guard apprehends 22 Chinese after illegal entry attempt

  • 4

    Distraught roller skater apologizes for costly premature celebration

  • 6

    S. Korea wins 1st table tennis gold in 21 yrs

  • 8

    Public transit fares to increase in Seoul and Busan this week

  • 10

    LA-based photographer captures Koreatown unfazed by pandemic

  • 12

    No regrets for roller skaters after taking silver in relay

  • 14

    National Assembly speeds up efforts to outlaw dog meat consumption in Korea

  • 16

    'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office

  • 18

    Internet-only banks outperform legacy lenders in labor productivity

  • 20

    Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Wed, October 4, 2023 | 19:43
Companies
POSCO, LX riding high on soaring raw materials prices
Posted : 2022-09-27 08:23
Updated : 2022-09-27 18:02
Lee Kyung-min
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link

                                                                                                 A palm oil farm operated by POSCO International. Korea Times file
A palm oil farm operated by POSCO International. Korea Times file

By Lee Kyung-min

POSCO International and LX International, the trading affiliates of steel giant POSCO and LX Group, respectively, are registering an unexpected earnings surprise, a rare boon propelled by a spike in global key raw material prices, coupled with the sharp depreciation of the Korean won against the greenback, industry officials and market watchers said Monday.

The rapid weakening of the Korean currency is a grave concern for the local financial authorities, mostly due to foreign capital outflow risks that are closely tied to stable market operations in an emerging economy.

However, the otherwise grim news is a great opportunity for local trading firms, long struggling due to years of globalization that almost completely undermined the role of intermediaries that charge commissions based on trade volume.

Global uncertainties-led depreciation of the Korean currency prompted price increases of key commodities imported, pushing up the trading volume overall. This in turn nets trading firms higher brokerage fees, a short-term lucrative business model sustained by greater demands amid accelerating inflation.

Further anchoring their profit is the firms being paid in U.S. dollars for their services instead of in Korean currency, a temporary boost for their recorded sales and operating profits.

POSCO International registered 320.6 billion won ($223.8 million) in operating profit in the second quarter of this year, up 89 percent year-on-year. The figure for LX International in the same period surged to 289.4 billion won, up 130 percent year-on-year.

Unexpected boon

"It certainly has been a boon," a POSCO International official said. "Our profit margins were bolstered by overall prices in goods and services, and the plummeting won. Trades of our coal and palm oil have definitely surged."

The sentiment is echoed by LX International. "Over 99 percent of our transactions are in U.S. dollars. The strong dollar has contributed greatly to improving our financial statements."

However, the two firms said the upbeat market outlook can take an unexpected turn next year, due in large part to recessionary fears.

"Concerns of economic recessions are looming, I understand, a reason why our record earnings in the past few quarters can just as easily turn into sharp losses," the LX International official said.

According to FN Guide, a financial data provider, the operating profit of LX International in the third and fourth quarters, is expected to log a year-on-year increase of 4 percent and 22 percent respectively.

Local brokerages including NH Investment and Securities and Mirae Asset Securities said both firms will be able to exceed 1 trillion won in operating profit this year.

Emaillkm@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
LG
Top 10 Stories
1Public transit fares to increase in Seoul and Busan this week Public transit fares to increase in Seoul and Busan this week
2Ruling party vows to investigate China's alleged influence operations Ruling party vows to investigate China's alleged influence operations
3Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW
4Korean steelmakers on alert over initiation of EU carbon border tariff Korean steelmakers on alert over initiation of EU carbon border tariff
5Korean shipbuilders seek lead over Chinese rivals in selling LNG carriers to Qatar Korean shipbuilders seek lead over Chinese rivals in selling LNG carriers to Qatar
630 out of 74 major financial companies lack female board member 30 out of 74 major financial companies lack female board member
7Hyundai, Kia to extend earnings rally on strengthening dollar, solid sales Hyundai, Kia to extend earnings rally on strengthening dollar, solid sales
8Lawmakers want chairmen of financial firms held accountable over misconduct Lawmakers want chairmen of financial firms held accountable over misconduct
9Dong-A Socio Group’s honorary chairman passes away at 96Dong-A Socio Group’s honorary chairman passes away at 96
10Returning home from Chuseok holiday Returning home from Chuseok holiday
Top 5 Entertainment News
1TREASURE takes flak for excluding Dokdo from its Japan tour map TREASURE takes flak for excluding Dokdo from its Japan tour map
2Two artists' windows to light and serenity Two artists' windows to light and serenity
3Crime thriller, romance series set to roll out in October Crime thriller, romance series set to roll out in October
4Korean literature featured as animation works at Incheon Airport Korean literature featured as animation works at Incheon Airport
5[PHOTOS] Kep1er returns with 'Magic Hour' to mesmerize fans PHOTOSKep1er returns with 'Magic Hour' to mesmerize fans
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group