Outlook Improves but Challenges Remain in Raw Material Supply and More...

Jungjinkong Publishes Field Survey Brief on Small and Medium Venture Enterprises

[Asia Economy Reporter Kim Cheol-hyun] Although an economic rebound compared to the previous year is expected across all industries, concerns remain among small and medium-sized enterprises (SMEs) regarding difficulties in securing automotive semiconductors, rising raw material prices such as steel and crude oil, and responses to ESG (Environmental, Social, and Governance) management.

On the 13th, the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced this in the 'SME Field Survey Brief,' which contains industry-specific economic outlook weather maps and trends based on cases collected from field departments.

Specifically, the automotive industry is showing favorable conditions due to new car launches and the expansion of eco-friendly car exports; however, deliveries have decreased due to a shortage of automotive semiconductors, and if this shortage continues, operational difficulties are expected. The steel industry anticipates economic improvement due to increased demand from upstream industries following the global economic recovery. However, at the same time, SMEs are facing difficulties such as decreased order volumes from clients and increased working capital requirements due to soaring raw material prices like aluminum and steel plates.

Since COVID-19, the expansion of the non-face-to-face economy has energized related industries. In particular, in the foundational technology sector, the development of extended reality (XR) technology, which provides face-to-face level experience and immersion, and the rapid growth of the metaverse industry, a next-generation platform that merges reality and virtuality, have been remarkable. In the content sector, areas distributed and consumed non-face-to-face, such as webtoons and games, are growing, and K-webtoons recorded the highest export growth rate (36.7%) in the content sector in the first half of last year due to global expansion.

The petrochemical industry recorded record-high exports from March to May, driven by increased demand for packaging materials and home appliances related to the non-face-to-face industry and rising oil prices. Semiconductor exports surpassed $10 billion in May for the first time in 30 months since November 2018. Recently, ESG management has been spreading in the petrochemical industry, a representative high carbon-emission sector, and there were voices from the field calling for policy support for eco-friendly technology development and professional workforce training.

Chairman Kim Hak-do stated, "SBC will provide cooperative funds for joint purchasing of raw materials to companies struggling due to rising raw material prices," adding, "We will also support SMEs' transition to low-carbon and eco-friendly management by utilizing various policy tools such as carbon-neutral management innovation vouchers and support for building carbon-neutral smart factories in line with the ESG management trend."

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