Four out of ten conglomerates in South Korea expect their export revenue to worsen in the second half of the year, compared with a year earlier.

According to a survey of 150 companies among the top one-thousand in terms of sales, conducted by Mono Research and commissioned by the Federation of Korean Industries, 38-point-seven percent of the respondents said they think export profitability will post a decline in the second half.

Forty-seven-point-three percent said they foresee figures similar to last year’s, while 14 percent predicted improved profitability.

Pessimists outnumbered optimists in seven sectors, including auto parts, automobiles, petrochemicals and steel, while the reverse was true for the semiconductor and shipbuilding industries.

When the respondents who expressed pessimism were asked to explain their answers, 44-point-eight percent mentioned increased costs due to tariffs, with 34-point-five percent citing reduced unit prices amid intensified competition.

Fifty-three-point-three percent said the biggest export risk during the second half is the U.S. tariff policy under President Donald Trump, while 14 percent said it is stagnant demand stemming from low growth in the global economy.