49.3% of SMEs Expect Export Growth to New Southern Countries This Year

[Asia Economy Reporter Kim Daeseop] Five out of ten small and medium-sized enterprises (SMEs) selected 'New Southern Countries' such as Vietnam and India as the regions expected to see export growth this year. The most requested key government task to expand SME exports was 'strengthening support for overseas marketing.'

According to the Korea Federation of SMEs on the 28th, the results of the '2020 SME Export Outlook and Policy Tasks' survey showed that the region expected to see export growth (multiple responses) was most frequently 'New Southern Countries' (49.3%). This was followed by 'China' (29.3%), 'Europe' (25.3%), 'New Northern Countries' (16%), and 'North America' (12.3%).

The external risk factors affecting exports were most commonly cited as 'global economic downturn and domestic demand recession in major trading countries' (64.7%). Other risks included 'US-China trade dispute' (14.3%) and 'Middle East risk due to US-Iran conflict' (10.7%).

As countermeasures against external risks, the responses were 'diversification of export markets such as pioneering emerging markets' (41%), 'strengthening management of existing clients' (35.7%), and 'no separate countermeasures' (16.7%). The new markets SMEs hope to enter for market diversification (multiple responses) were 'New Southern Countries' (35.7%), 'Europe' (23%), 'North America' (18.7%), and 'New Northern Countries' (15.7%).

The key government tasks to expand SME exports (multiple responses) were 'strengthening support for overseas marketing such as exhibitions and market development teams' (52.7%), 'strengthening preferential financial policies and support for export companies' (47.7%), and 'expanding support for pioneering emerging markets such as New Southern and Northern Countries' (34.3%).

When asked about this year's export outlook, 53% of SMEs responded 'average.' This was followed by 'good' (28.7%), 'bad' (15%), 'very bad' (2%), and 'very good' (1.3%).

This survey was conducted with 300 export SMEs nationwide.

Kim Kyungman, Head of the Economic Policy Department at the Korea Federation of SMEs, said, "Despite various export risks such as the US-China trade dispute and Middle East issues this year, SMEs appear to have positive expectations. However, since the majority of SMEs hope to enter New Southern Countries to diversify exports, active government support is necessary."

This content was produced with the assistance of AI translation services.