8 out of 10 Small and Medium Enterprises in Gyeongnam Report Sales Decline Due to COVID-19

[Asia Economy Reporter Dongwoo Lee] More than 8 out of 10 small and medium-sized enterprises (SMEs) in Gyeongnam are experiencing difficulties in management, such as a decrease in sales compared to last year due to the novel coronavirus infection (COVID-19).

The Gyeongnam Regional Headquarters of the Korea Federation of SMEs and Gyeongnam Province announced on the 26th the results of a survey on the damage to manufacturing SMEs caused by COVID-19, conducted from the 1st to the 8th of this month targeting 201 local SMEs.

Among them, 175 companies (87.1%) that responded to the survey said that their sales from January to May this year decreased compared to the same period last year. Companies that reported an increase in sales were 22 (10.9%), and those with no change were only 4 (2%).

The scale of sales decrease was 93 companies (53.2%) with a 20?49% decrease, 47 companies (26.8%) with less than 20%, and 35 companies (20%) with a decrease of 50% or more. Among the 175 companies with decreased sales, 81.2% (160 companies) stated that COVID-19 influenced the sales decline.

Among the 201 surveyed companies, 43 companies (21.4%) implemented unpaid leave, while 158 companies (78.6%) did not. In response to a survey question about plans for future unpaid leave or workforce reduction, 96 companies (47.8%) answered that they plan to apply unpaid leave. Companies planning workforce reduction numbered 74 (36.8%).

The companies identified necessary government policies as special guarantees and financial support, expansion of employment retention subsidies, tax support, support for diversification of imports and exports, and facilitation of entry and exit for businesspeople.

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