First Half of the Year

In accounting, finance, and management, it refers to the period from January 1 to June 30, and is a key unit for corporate performance evaluation and economic indicator analysis.

First Half of the Year

Overview

The first half of the year (상반기, first half of the year) generally refers to the six-month period from January 1 to June 30. In accounting, finance, and management, it serves as the basis for evaluating a company's semi-annual performance and establishing economic outlooks. First-half performance is used as an interim indicator to gauge the achievement of annual goals, and investors and analysts formulate second-half strategies based on first-half data.

Main Content

First Half in Accounting and Finance

Semi-Annual Report: In South Korea, listed companies must submit semi-annual reports to the Financial Supervisory Service's electronic disclosure system (DART). The semi-annual report includes financial statements (balance sheet, income statement, cash flow statement, etc.) and management analysis.
Interim Dividend: Some companies pay interim dividends (semi-annual dividends) based on first-half performance. This is part of shareholder return policies and is determined by dividend payout ratio and cash flow.
Tax Filing: The corporate tax interim prepayment filing is based on first-half (January to June) performance and must be completed by the end of August. For individual business owners, there is a preliminary value-added tax filing for the first half (July).

Economic Indicators and the First Half

GDP Growth Rate: The Bank of Korea releases the preliminary first-half Gross Domestic Product (GDP) figure at the end of July. This serves as an important basis for annual growth rate forecasts.
Employment and Price Indicators: Statistics Korea compiles and releases first-half employment trends (number of employed persons, unemployment rate) and the Consumer Price Index (CPI) on a quarterly basis.
Export and Import Performance: The Ministry of Trade, Industry and Energy releases first-half export and import performance in early July, analyzing the semi-annual trade balance and trends by major items.

First Half in Management Strategy

Goal Achievement Review: Companies review the achievement rate of annual sales and profit targets based on first-half performance and adjust second-half strategies.
Performance Evaluation: Many companies conduct first-half performance evaluations in July, using them as criteria for promotions, compensation, and organizational restructuring.
Investment and Budget Execution: First-half execution performance is analyzed to revise second-half investment plans and budget allocations.

Comparison of First Half and Second Half

Seasonal Factors: The first half has seasonal characteristics such as demand during holidays like Lunar New Year and Chuseok, and increased construction and consumption in spring. The second half sees concentrated events like Black Friday and year-end consumption.
Performance Patterns: In the IT and electronics sectors, performance is concentrated in the first half due to new product launches (Galaxy S, iPhone, etc.), while the retail and consumer goods sectors have a larger share in the second half.
Stock Market: First-half stock price trends often determine the direction of annual returns. Patterns such as 'strong first half, weak second half' or the opposite may appear.

Recent Trends

Key trends related to the first half as of 2024–2025 are as follows.

Strengthened Semi-Annual Disclosure: From 2024, the Financial Supervisory Service mandated the inclusion of sustainability management (ESG) information in semi-annual reports. This includes climate change risks and carbon emission data.
Expansion of Interim Dividends: The number of KOSPI and KOSDAQ-listed companies paying interim dividends increased from 120 in 2023 to 150 in 2024. This reflects investor preference for companies with high dividend payout ratios.
AI-Based Performance Analysis: From 2025, major securities firms and analysts introduced services that use AI models to analyze and predict first-half performance in real time. Natural language processing (NLP) summarizes and compares key content from semi-annual reports.
Changes in First-Half Economic Outlook: South Korea's first-half GDP growth rate in 2024 was 1.3%, exceeding the second-half forecast (1.1%). In the first half of 2025, growth of 1.5% is expected due to expectations of global interest rate cuts and recovery in the semiconductor industry.
Changes in Interim Prepayment Tax System: Due to tax law revisions in 2024, a shift from using the previous year's performance to the current first-half performance as the basis for corporate tax interim prepayment is under discussion. This is expected to affect corporate cash flow management.