By Kim Tae-gyu
Staff Reporter

After chalking up impressive performances during the second and third quarters of the year, Korea's iconic companies are expected to suffer from a downturn in the final quarter.

FnGuide, a Seoul-based financial consultancy, projected Wednesday that 104 major companies would rack up aggregate operating profits of 15.5 trillion won over the final three months of 2009, down 6.2 percent from the previous quarter.

Samsung Electronics, the country's foremost company, is predicted to see its operating profit shrink 8.2 percent to 2.5 trillion won quarter-on-quarter over the October-December period.

The bottom line of Samsung's cross-city rival LG Electronics will plummet - the home appliance giant will record 265.7 billion won in operating profit during the same period, down 55.9 percent from the previous quarter, it said.

SK Telecom, the country's primary mobile operator, and fixed-line behemoth KT were projected to experience declines of 11.2 and 21.4 percent in operating profits, respectively.

Hyundai Heavy Industries, the world's biggest shipbuilder, will also see its operating profit during the fourth quarter drop 30 percent, FnGuide said.

"The third-quarter results were too good. Hence, the fourth-quarter outcomes will be relatively weak and the downward trend is feared to continue into next year," Samsung Securities economist Hwang Geum-dan said.

"Companies will face jitters early next year because of the slump in the info-tech industries. Things are expected to turn around during the latter half of next year at the earliest," she said.

On top of the disappointing corporate performances, the Korean economy is also projected to see problems later this year.

Asia's fourth-largest economy has posted 2.6- and 2.9 -percent expansions in the second and third quarters, bouncing back quickly from the unprecedented global financial crisis.

Yet, market watchers paint a somewhat gloomy picture for the final quarter and early next year.

"The outstanding business showings this year were boosted by the weak won. If the favorable foreign exchange rate effect disappears, I am afraid that high profitability will fade away," professor Ham Joon-ho at Yonsei University said.

"The economy is most likely to remain lackluster for the time being. And the equities market already reflects such concerns," he said.

The benchmark KOSPI has depreciated almost 10 percent below the 1,600 point mark after peaking at 1,723.17 on Sept. 23.

The won-dollar exchange rate approached 1,600 won per dollar in early March, but the rate plunged thereafter as the economy showed signs of stabilizing. The rate is now moving in the neighborhood of 1,160 won a dollar.

Strategy-Finance Minister Yoon Jeung-hyun has warned against complacency, saying many uncertainties lie ahead.

voc200@koreatimes.co.kr