7 out of 10 SMEs Say "Severe Business Impact Due to COVID-19"

On the 24th, when domestic COVID-19 cases were rapidly increasing, a notice requesting mask-wearing for entry was posted at a store in Changsin-dong, Jongno-gu, Seoul Toy Market. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Hyewon] It has been revealed that 7 out of 10 domestic small and medium-sized enterprises (SMEs) are suffering serious damage to their management due to the spread of the novel coronavirus infection (COVID-19). According to the results of the "Emergency Survey on the Management Status of SMEs Related to COVID-19" announced by the Korea Federation of SMEs on the 27th, 70.3% of domestic SMEs reported experiencing management damage due to the spread of COVID-19. This figure is more than double the management damage (34.4%) reported in the first survey conducted from the 4th to 5th of this month. The recent survey was conducted from the 25th to 26th and involved a total of 300 companies, including 192 import-export companies and 108 service providers.

Specifically, 72.3% of import-export companies (66.7% of exporters and 78.2% of importers) reported management damage, while 67.6% of domestic service companies reported suffering damage. In terms of damage types, 51.6% of import-export companies experienced "delivery disruptions due to the suspension of operations at Chinese factories," and 40.1% faced "business activity disruptions due to reduced opportunities to visit China." Among domestic service companies, 66.5% experienced "reduced sales due to decreased visitors and economic downturn," and 7.6% reported "labor shortages caused by leave of absence for employees suspected of infection." Regarding the recent voluntary rent reductions by building owners, 50.0% of respondents judged that such measures would be a significant help to management.

Kim Gi-moon, Chairman of the Korea Federation of SMEs, stated, "The suspension of factory operations due to the absence of Chinese workers, difficulties in procuring raw materials and parts, and the rapid spread of COVID-19 in Daegu and other areas causing national anxiety have severely impacted export-import and domestic companies, including a decline in sales for small business owners." He added, "The government should promptly prepare and support various measures such as additional supplementary budgets, special guarantee support for SMEs, and expansion of employment retention subsidies to ensure public safety and support small and medium enterprises."

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