The Korea Federation of Small and Medium-sized Enterprises (SME) building in Yeongdeungpo District, Seoul / Courtesy of the Korea Federation of SMEs
More than eight out of 10 small and medium-sized enterprises (SMEs) in Korea expect their business conditions to remain gloomy, if not worsen, next year, a survey showed Tuesday.
In a survey of 1,000 SMEs conducted by the Korea Federation of SMEs, 59.7 percent said they forecast their business environment in 2025 to be similar to that of this year, which nearly half of the respondents thought was bad.
Some 23 percent said they will have a tougher situation next year, while only 17.2 percent said the business environment would be more favorable in the coming year.
As reasons for the difficult business situation for this year, a weak domestic economy was cited the most at 74.4 percent, followed by a rise in the prices of raw materials at 29.3 percent and an increase in labor costs at 28.9 percent.
The SMEs called for more financial support for research and development and facility investments, as well as help with exports to tackle the crisis.
Korea's central bank has lowered its outlook for the country's economic growth next year to 1.9 percent from the previous 2.1 percent amid growing concerns over potential changes in the trade policies of the United States and other major economies. (Yonhap)
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