82% of Women-Owned Businesses Report Business Impact from Middle East Crisis

According to a recent survey, more than 8 out of 10 women-owned businesses in Korea have experienced an impact on their business activities due to the war in the Middle East. Over 40% said they have not yet found effective countermeasures. These enterprises are facing a dual challenge of rising raw material costs and a contraction in domestic consumption, resulting in a downturn in business performance.

'Investigation on the Impact of Middle East Geopolitical Changes on Women-Owned Businesses' Results on the Level and Factors of Business Activity Impact. Women's Enterprise Comprehensive Support Center Affiliated Women's Economic Research Institute,

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On April 30, the Women’s Economic Research Institute, affiliated with the Women’s Enterprise Comprehensive Support Center, announced the results of a survey conducted on 977 women-owned businesses, titled "Survey on the Impact of Changes in the Middle East Situation, Including U.S.-Iran Tensions, on Women Entrepreneurs." The results showed that 82.2% of respondents reported that their business activities were affected. Including those who expect to be affected in the future (12.3%), 94.5% of respondents are feeling the risks stemming from the Middle East crisis.

Among the companies that reported being affected, 97.2% stated that the impact was "moderate or higher," indicating that the level of crisis felt on the ground has reached a critical threshold.

The main reasons cited by women-owned businesses for the business downturn were both increased cost burdens and a decline in domestic demand. From the cost and supply perspective, "rising raw material prices" was the most common response (49.4%), followed by raw material supply issues (12.7%) and rising oil prices (11.8%).

From the market and demand perspective, the key factors identified were a "decrease in domestic demand due to weakened consumer sentiment" (30.1%) and "declines or cancellations of orders from clients" (28.5%). A total of 89.5% of women-owned businesses anticipated a decline in sales, raising concerns about a contraction across the overall business ecosystem.

A significant number of companies have not yet established countermeasures. Only 8.1% of respondents said they were "already implementing countermeasures," while 43.1% responded that "measures are needed but have not yet been established."

More than 60% of respondents said that a recovery period of "more than six months" would be required. By duration, "six months to one year" accounted for 30.9%, while "more than one year" made up 30.3% of responses.

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As for direct support measures, women-owned businesses cited the need for "emergency management stabilization funds" (45.3%) and "financial support" (42.6%). Regarding indirect support, the top responses were "support for resolving difficulties related to laws, systems, and regulations" (38.9%) and "consulting on management strategy and crisis response" (38.5%).

Park Changsook, Chairperson of the Women’s Enterprise Comprehensive Support Center, stated, "This survey clearly shows how external risks, such as the Middle East crisis, are destabilizing the business ecosystem for women-owned businesses in Korea. Now, more than ever, it is urgent to establish effective safety nets, including government-level emergency management stabilization funding and financial regulatory easing-measures that go beyond the efforts of individual businesses."

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