Six Out of Ten Small Businesses in Honam and Jeju Fail to Survive Five Years

Five-Year Survival Rate: Jeju 40.3%, South Jeolla 40.2%, Gwangju 37.8%
Wholesale and Retail Lead in Start-Ups and Closures... Gwangju's Closure Rate at 11.7%
South Jeolla's Total Sales at 43.6 Trillion Won, Gwangju Tops Sales per Business at 166 Million Won
Most Businesses Earn Less Than 20 Million Won Annually... Only 3% Exceed 1 Billion Won

Six out of ten small businesses in Honam and Jeju fail to survive beyond five years after their establishment.

Infographic on the Economic Changes of Small Business Owners in Honam and Jeju Regions released on the 27th by Honam Regional Statistics Office. Provided by Honam Regional Statistics Office

According to the "Economic Changes of Small Business Owners in Honam and Jeju Regions" released by the Honam Regional Statistics Office on August 27, 2025, the five-year survival rates by region in 2023 were 40.3% for Jeju, 40.2% for South Jeolla, 37.8% for Gwangju, and 37.8% for North Jeolla. The one-year survival rates were 72.0% for South Jeolla, 71.4% for Jeju, 68.0% for Gwangju, and 65.3% for North Jeolla, meaning that seven out of ten businesses survived the first year, but the number of businesses enduring up to five years dropped significantly.

By industry, wholesale and retail businesses accounted for the largest number of both new establishments and closures. From 2019 to 2023, most new businesses were in wholesale and retail, accommodation and food services, repair and other personal services, transportation and storage, electricity, gas, steam and air conditioning supply, and real estate. During the same period, closures were most common in wholesale and retail, followed by accommodation and food services, and real estate.

As of 2023, the number of small business establishments was 263,000 in South Jeolla, 261,000 in North Jeolla, 194,000 in Gwangju, and 121,000 in Jeju. Compared to 2019, this represents an increase of 52,000 in North Jeolla, 48,000 in South Jeolla, 29,000 in Gwangju, and 22,000 in Jeju, respectively.

Infographic on the Economic Changes of Small Business Owners in Honam and Jeju Regions released on the 27th by Honam Regional Statistics Office. Provided by Honam Regional Statistics Office

In 2023, North Jeolla had the highest small business start-up rate at 12.3%, followed by Gwangju (12.1%), South Jeolla (11.5%), and Jeju (11.2%). The closure rate was highest in Gwangju at 11.7%, followed by Jeju (11.1%), North Jeolla (10.5%), and South Jeolla (10.3%).

Small business sales were highest in South Jeolla at 43.6 trillion won, followed by North Jeolla at 38.6 trillion won, Gwangju at 32.1 trillion won, and Jeju at 16.4 trillion won. Sales per business were highest in Gwangju at 166 million won, followed by South Jeolla at 165 million won, North Jeolla at 147 million won, and Jeju at 136 million won.

In terms of annual sales volume, the largest proportion of businesses in all regions had less than 20 million won in sales. The proportions were 34.0% in Jeju, 30.0% in South Jeolla, 30.0% in North Jeolla, and 29.5% in Gwangju. This was followed by businesses with 20 million to less than 50 million won, 50 million to less than 100 million won, 200 million to less than 1 billion won, and 100 million to less than 200 million won in sales, in that order. Businesses with annual sales of 1 billion won or more accounted for less than 3% of the total.

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