Small business owners in South Korea have experienced a significant drop in income in 2024, with an average decline of 13.3%, according to a recent survey. The study, conducted by Mono Research between January 20 and February 7, polled 500 small business owners and highlighted the challenges stemming from weak consumer sentiment and economic uncertainty.
The survey, commissioned by the Federation of Korean Industries, found that 72% of respondents reported a decrease in net income compared to the previous year, while just 28% experienced an increase. Looking ahead, the outlook remains grim, with 62.2% of business owners expecting a further reduction in income in 2025, anticipating an average decline of 7.2%.
The rising costs of raw materials were identified as the primary financial strain for small businesses, cited by 22.2% of respondents. Labor costs (21.2%) and rent (18.7%) also emerged as significant challenges.
The average loan amount per respondent was reported at 120 million won ($83,933), with business owners paying an average of 840,000 won per month in interest.
An official from the Federation of Korean Industries commented, “The fundamentals of household consumption are weakening, and the domestic market is freezing, exacerbating the difficulties faced by self-employed business owners.”
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