SMEs Face Most Difficulties with 'Export-Import Delays' Due to Novel Coronavirus

Ministry of SMEs and Startups Announces Support Measures for SMEs and Small Business Owners Responding to Novel Coronavirus

[Asia Economy Reporter Kim Cheol-hyun] The biggest difficulty faced by our small and medium-sized enterprises (SMEs) due to the novel coronavirus infection has been identified as 'export-import delays.' The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced this on the 12th at the Economic Vitality Countermeasure Meeting by presenting the 'Support Measures for SMEs and Small Business Owners in Response to the Novel Coronavirus.' This was based on an investigation conducted from January 28, when the Ministry established an emergency response team, to February 7, through domestic and overseas bases of related organizations to assess the damage and difficulties experienced by domestic SMEs and small business owners operating in China.

Out of a total of 216 cases of SME damages and difficulties identified, export-import delay issues were the most frequent, affecting 65 companies (30.1%). This was followed by raw material supply difficulties (58 companies), production stoppages (16 companies), and export-import suspensions (15 companies). Looking at examples by type of difficulty, food manufacturers experienced indefinite postponements of export volume confirmations from Chinese buyers, and tea manufacturers were requested by Chinese buyers to stop delivering existing order volumes. Many SMEs also faced challenges in raw material supply. For instance, mask manufacturers suffered production and export disruptions due to the suspension of Chinese-made auxiliary material supplies, and hand sanitizer manufacturers faced supply difficulties due to price increases caused by excessive demand for the domestic raw material ethanol.

Small business owners most frequently cited sales declines as their main difficulty. This is based on two surveys conducted by the Ministry targeting 332 small business establishments and 236 traditional markets. A total of 546 cases of damages and difficulties among small business owners were identified, with 369 businesses (67.6%) reporting hardships due to decreased sales. Delays in goods supply (26 businesses) were also noted as a significant issue.

Due to cancellations of local festivals and events such as graduation and entrance ceremonies, sales have sharply declined, especially in lodging, food service, and floral industries. In fact, large restaurants frequented by many foreign customers reported almost no patrons, making it difficult to afford monthly rent, and expressed consideration of closure if the situation prolongs. Among restaurants visited by confirmed patients, some have completed store disinfection and are currently closed. Minister Park Young-sun stated, "We are focusing on policy support to promptly assist those affected and proactively respond to anticipated damages."

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