Seoul: Kia Corp., South Korea's second-largest automaker, reported a significant decrease in its fourth-quarter net profit, citing the adverse effects of U.S. import tariffs. The company announced on Wednesday that its net profit for the three months ending in December fell by 15.5 percent to 1.47 trillion won (US$1 billion), compared to 1.74 trillion won in the same period of 2024.

According to Yonhap News Agency, the reported net profit was below market expectations, as analysts projected an average net profit of 1.5 trillion won based on a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency. The recent trade agreement, which saw the U.S. reducing tariffs on auto imports from South Korea to 15 percent from 25 percent, was intended to facilitate increased South Korean investments in the U.S., amounting to $350 billion.

However, in a recent turn of events, U.S. President Donald Trump announced plans to increase auto duties on South Korean vehicles back to 25 percent. This decision was attributed to delays in Seoul's legislative procedures required for the trade deal's implementation. Consequently, Kia's operating profit plummeted 32 percent to 1.84 trillion won, despite a 3.5 percent rise in sales to 28.08 trillion won during the fourth quarter.

For the entirety of 2025, Kia's net profit decreased by 22.7 percent to 7.55 trillion won, while operating profit fell 28 percent to 9.08 trillion won. Sales, however, showed a 6.2 percent increase, reaching 114.14 trillion won for the year.

Looking ahead to 2026, Kia aims to achieve an operating profit of 10.2 trillion won on sales of 122.3 trillion won, with plans to sell 3.35 million vehicles globally, representing a 6.8 percent increase from the previous year. A company official stated that despite the challenges posed by U.S. tariffs and intense competition in major markets, Kia will focus on regaining profitability and fostering growth through higher average selling prices of environment-friendly vehicles in the U.S. market.