8 out of 10 SMEs Suffer from COVID-19 Damage... "Recovery Period After Q3 Next Year"
IBK Economic Research Institute Announces Survey Results on the Impact of COVID-19 on SMEs
82.0% of SMEs Reported Damage Due to COVID-19
32.8% Expect Recovery After Q3 2021... Management Focused on Cost Reduction
Yoon Jong-won, President of Industrial Bank of Korea, visiting the automobile parts industry site in Gwangju, Jeonnam, on the 9th.
View original image[Asia Economy Reporter Kangwook Cho] It has been revealed that 8 out of 10 small and medium-sized enterprises (SMEs) suffered damage due to the novel coronavirus disease (COVID-19) crisis.
The IBK Economic Research Institute under IBK Industrial Bank of Korea announced on the 28th that a survey was conducted to analyze the impact of COVID-19 on SMEs, and the results showed this.
The survey was conducted from May 27 to the 9th of last month, targeting 1,000 SMEs with fewer than 300 employees.
According to the survey, 82.0% of SMEs across all industries reported damage. The types of damage were in order of sales decline (87.4%), increased disinfection costs (21.5%), and production disruption due to business closures (14.6%).
The proportion of companies benefiting from the government's emergency management stabilization funds for COVID-19 damage recovery was 9.6%. Companies used these funds for purposes such as labor costs (82.3%) and rent (25.0%). 31.5% of surveyed companies responded that additional financial support is needed.
When asked about the timing of business recovery to pre-COVID-19 levels, 32.8% expected it to be 'after the third quarter of 2021.' To overcome the crisis, companies plan to implement management strategies such as strengthening cost management (52.3%) and streamlining organizational operations (33.5%).
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Yoon Jong-won, President of IBK, said, “As the impact of COVID-19 is expected to prolong, we plan to minimize blind spots by utilizing the analyzed survey results to provide timely financial support to SMEs and customized financial and non-financial services by industry.”
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