Direct Hit from Economic Downturn... Gwangju and Jeonnam Small Business Owners Say "This Year Was Even Tougher"

Sluggish Domestic Demand, Declining Sales, and Labor Costs Are Main Factors
More Than Half Report Poor Financial Conditions
Growing Calls for Better Policy Accessibility and Simplified Procedures

More than half of small enterprises and small business owners in Gwangju and Jeonnam responded that their management conditions worsened this year. According to a survey, the prolonged economic recession and the burden of high interest rates are causing a clear downward trend in business sentiment on the ground.

As the economic recession prolongs, small business owners in Gwangju and Jeonnam responded that their management conditions worsened this year. Photo unrelated to the article.

On November 17, the Gwangju and Jeonnam Regional Headquarters of the Korea Federation of SMEs conducted a "Management Environment Difficulties Survey" targeting 300 local small enterprises and small business owners. According to the results, 59.0% of respondents said their management conditions had deteriorated compared to the previous year, while only 9.0% said conditions had improved. The main reason cited for the deterioration was sluggish domestic demand at 71.2%, followed by poor sales channels and sales performance at 36.2%, and the burden of labor costs at 20.3%.

Regarding financial conditions, more than half (50.7%) responded that their situation was "bad." The highest reliance for funding was on loans from financial institutions at 39.3%, while the use of government policy funds accounted for 23.7%. The most frequently cited difficulty was the burden of loan interest rates at 54.3%, followed by difficulty meeting loan requirements at 29.0%, and the complexity of the application process for policy funds at 26.7%.

52.3% of respondents said they had experience using small business support policies from the government or local governments. The main reason for not using these policies was lack of access to information at 44.8%, followed by lack of policy effectiveness at 32.9%, and entry barriers due to application requirements and procedures at 25.2%.

When asked which policy areas most urgently needed strengthening, revitalizing domestic demand and promoting consumption accounted for 36.7%, and financial and loan support for 33.7%, totaling over 70%. In terms of the type of support needed, direct financial support was the most requested at 55.7%, indicating that there is a strong demand on the ground for expanded financial assistance.

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