Jeju, South Korea – A recent survey conducted by the Korea Federation of SMEs has revealed a bleak outlook for South Korea's small businesses. More than half of the surveyed business owners in Jeju and Gangwon provinces expect to face a challenging business environment this year.
The primary factors contributing to these difficulties include soaring raw material costs, labor shortages, high-interest rates, and a sluggish domestic economy. To cope with these challenges, a significant proportion of small businesses have resorted to taking out loans.
"The prolonged economic downturn has made it increasingly difficult for small businesses to survive," said Park In-cheol, president of the Jeju Small Business Association. "We urge local governments to implement policies that can revitalize the local economy and attract more tourists."
To address the pressing needs of small businesses, respondents called for increased financial support, including loans with lower interest rates. Additionally, they emphasized the importance of government policies to alleviate labor shortages and reduce energy costs.
As South Korea grapples with a complex economic environment marked by high inflation, interest rates, and political uncertainty, the government is facing increasing pressure to provide targeted support for small businesses, which are the backbone of the economy.
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