Overseas Conflicts, Political Instability, Sanctions and Labor-Management Relations

「As conflicts between countries intensify, as seen in the situation in the Middle East, China's export restrictions on Japan, and developments in US tariff measures, the international economic environment may deteriorate, potentially having a serious impact on companies' business activities and business continuity.」

「The global economy, particularly in developed countries, is seeking to balance measures against COVID-19 with social and economic activity, and signs of recovery continue, including improvements in employment and income conditions, a recovery in personal consumption, investment toward decarbonization, and increased international air passenger demand. Meanwhile, uncertainty over the outlook for the global economy is increasing, including downside risks to economic activity resulting from the prolonged situation in Ukraine, heightened tensions between the United States and China, rising resource and energy prices, supply chain disruptions, and the effects of monetary tightening policies in the United States and Europe.」

「Meanwhile, the effects of the situation in Ukraine on financial markets, rising energy prices, and supply chains are becoming apparent, and the Group is concerned about the impact of soaring raw material and logistics costs.」

「Conflict between the United States and Europe and Russia over the situation in Ukraine, as well as economic security issues arising from US-China friction, are also becoming apparent, and continued attention is required regarding the outlook for the global economy.」

「As exchange rates may fluctuate sharply and significantly due to the economic policies of the United States and other countries and growing geopolitical risks in the Korean Peninsula and elsewhere, close attention to foreign exchange markets remains necessary.」

「The domestic economy is recovering moderately, affected by a gradual recovery in personal consumption and a rebound in capital investment. Moderate overall growth is expected going forward due to steady improvements in income and employment conditions. However, close attention to foreign exchange markets remains necessary, as exchange rates may fluctuate sharply and significantly due to the economic policies of the United States and other countries and growing geopolitical risks in the Korean Peninsula and elsewhere.」

「Conflicts, political instability, defaults, trade sanctions, religious and cultural differences, and unusual labor-management relations in countries and regions where products are shipped and where production, construction, sales, procurement, and other activities are conducted may impede smooth business operations and affect the Group's performance.」