"Impact of Consumption Coupons"... SME Service Sector Production Index Rises in July This Year

Service Sector Up 2.9% Year-on-Year
Manufacturing Down 0.8% Amid Domestic and External Uncertainties

Due to the impact of the livelihood recovery consumption coupons, the business conditions of small and medium-sized service enterprises showed a slight improvement in July this year. However, the production index of small and medium-sized manufacturing enterprises declined compared to the same month last year, affected by both domestic and external uncertainties.

On September 29, the Korea Small Business Institute announced the release of the "KOSI SME Trends, September 2025 Edition," which contained these findings. In July this year, the production index for small and medium-sized service enterprises rose by 2.9% compared to the same month last year. During the same period, small and medium-sized manufacturing enterprises saw a 0.8% decline. The improvement in the service sector was attributed to the distribution of livelihood recovery consumption coupons, while the manufacturing sector was negatively affected by unresolved domestic and external uncertainties.

In July this year, total retail sales reached 54.5 trillion won, up 3.8% from the same month last year. Sales increased across all categories: durable goods (6.5%), semi-durable goods (2.2%), and non-durable goods (3.1%).

In August this year, the number of employees at small and medium-sized enterprises was 25,599,000, a decrease of 55,000 compared to the same month last year. While companies with 5 to 299 employees saw an increase of 81,000 workers, companies with 1 to 4 employees experienced a decrease of 135,000, resulting in an overall decline in employment. By industry, the number of employees continued to decrease in both manufacturing (-64,000) and construction (-143,000).

Among wage workers at small and medium-sized enterprises, the number of regular employees increased by 118,000, while temporary workers decreased by 6,000 and daily workers decreased by 65,000, respectively.

The number of newly established companies in July was 103,092, a decrease of 2.5% compared to the same month last year. There was a general decline in manufacturing (-7.5%), service (-1.3%), and construction (-12.1%), while the number of new technology-based enterprises increased by 2.6% year-on-year to 19,891.

A representative from the Korea Small Business Institute stated, "In July, the distribution of livelihood recovery consumption coupons stimulated the domestic market and the service sector, improving business conditions for small and medium-sized enterprises. Policymakers should take advantage of the holiday season to maintain the recovery in domestic demand, while also making policy efforts to minimize the impact of external uncertainties, such as tariffs, on small and medium-sized enterprises."

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