Overview

• Hyundai’s second-quarter operating profit dropped 16% to 3.6 trillion won, with 828 billion won lost to the 25% U.S. auto tariffs.
• Kia’s net profit fell 23.3% to 2.26 trillion won, as tariffs shaved 786 billion won from its operating profit.
• Both automakers kept their full-year guidance in place while awaiting the outcome of reciprocal tariff talks set for August 1.
• Hyundai and Kia plan to flexibly adjust U.S. vehicle pricing, cut incentives, localize parts sourcing and explore expanded U.S. production to defend margins.
• A recent U.S.–Japan deal cutting Japanese auto tariffs to 15% has intensified competitive pressure on South Korean exports.