Disaster Safety Industry Sales Up 8%... Single-Digit Growth in Businesses and Workers

48% of Businesses with Sales Under 500 Million Won Are Small-Scale... Domestic Market Focused Over Exports
Startups Complain of 'Initial Investment Cost Burden' and 'Difficulty in Market Development'

[Asia Economy Reporter Lim Cheol-young] The number of domestic disaster safety industry businesses, along with sales and number of employees, recorded single-digit growth.

According to the Ministry of the Interior and Safety on the 24th, as of the end of 2019, the number of domestic disaster safety industry businesses was 71,038, total sales amounted to 47.3493 trillion KRW, and the number of employees was 410,319. Compared to 2018, the number of businesses increased by 5.8%, sales grew by 8.0%, and the number of employees also rose by 5.6%.

By industry sector, social disaster prevention industries accounted for 22,035 businesses (31.0%), and disaster response industries accounted for 22,026 businesses (31.0%), making up 62.0% of all businesses. The ‘Disaster Area Search and Rescue & Emergency Support Industry,’ which produces and sells evacuation ladders and ambulances, was the largest with 12,971 businesses (18.3%), followed by the ‘Fire and Explosion/Collapse Related Social Disaster Prevention Industry,’ which produces fireproof bricks, fire doors, and fire/gas alarms, with 9,515 businesses (13.4%).

Regarding sales, out of the total 47.3493 trillion KRW, social disaster prevention industries accounted for 13.3513 trillion KRW (28.2%), disaster response industries 12.5837 trillion KRW (26.6%), and other disaster-related service industries 7.722 trillion KRW (16.3%). Among these, businesses with annual sales under 500 million KRW numbered 34,166 (48.1%), about half, and the average sales per business were 660 million KRW. Overall, small-scale micro-enterprises constitute the majority.

Additionally, export sales accounted for 551.6 billion KRW of total sales, and only 1.1% of all businesses had export experience, indicating that most businesses are focused on the domestic market. Regarding employee gender composition, out of 410,319 employees, males numbered 312,417 (76.1%), more than three times the 97,902 females (23.9%).

These businesses identified initial investment costs and market development as their biggest burdens. The survey revealed complaints about the burden of initial investment costs and difficulties in market development, and respondents indicated the need for government support in areas such as low-interest funding (51.7%), inter-company networking (19.0%), and hiring incentives (9.6%).

Yoon Jong-jin, Director of the Safety Policy Office at the Ministry of the Interior and Safety, stated, “Based on the results of this survey, we will prepare disaster safety industry development policies that companies can feel on the ground.”

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