Kia currently accounts for 23% of the South Korean car market

Kia said its net profits dropped to 148.3bn won ($144.3m; �82.4m) in the three months to June, from a revised 203.3bn won at the same time last year.

A weaker euro against the won hit Kia's sales in Europe, where the company exports 60% of its cars.

However, analysts said the outlook for Kia was brighter, with steel prices and the value of the won both stabilising.

The recent launch of the firm's Grand Carnival minivan was also expected to boost sales.

Kia's second-quarter results came a day after its larger South Korean partner, Hyundai Motor, reported a 24% jump in net profits to 613.2bn won on strong sales in its domestic and US markets.

Kia currently accounts for 23% of the South Korean market.