"Q3 Small Business Profits Decrease by 13.7% Compared to Q2"

In the third quarter, both sales and profits of small business owners decreased compared to the previous quarter, the second quarter.

According to the '2024 3rd Quarter Small Business Owner Trend Report' released by Korea Credit Data on the 4th, the profit per small business establishment (sales minus expenses) in the third quarter was recorded at 10.2 million KRW. This amount is 13.7% lower than the previous quarter. The average sales per small business establishment dropped by 4.2% from the previous quarter to 43.31 million KRW, and the average expenses decreased by 0.8% to 33.31 million KRW.

Empty storefronts are scattered throughout the commercial area near Ewha Womans University in Seodaemun-gu, Seoul. Photo by Kang Jin-hyung

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Korea Credit Data stated, "It is estimated that the impact of the summer vacation period and the Chuseok holiday was reflected," adding, "Small business owners tightened their belts and reduced expenses, but could not prevent the decline in sales, resulting in a significant decrease in profits."

According to the report, the polarization of sales intensified across the nationwide food service industry, service industry, and distribution industry. In particular, Busan Metropolitan City showed the most prominent polarization in the food service industry, Gyeongsangbuk-do in the service industry, and Daegu Metropolitan City in the distribution industry.

Korea Credit Data has been providing the Small Business Owner Trend Report since the third quarter of last year. They stated that the report was prepared by extracting and processing data from 160,000 establishments out of 1.6 million nationwide establishments using the management service 'Cash Note.'

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