In May 2025, the production of small and medium-sized manufacturing industries fell significantly compared to the same month last year due to a decrease in working days and difficulties in the domestic market.
According to the July issue of the Korea SMEs & Startups Institute (KOSI) report on small and medium-sized enterprises, production in small and medium-sized manufacturing industries decreased by 4.7% compared to the same month of the previous year in May 2025. However, the production in small and medium-sized service industries increased by 0.6%, primarily led by finance and insurance sectors, along with health and social welfare services.
In May 2025, retail sales amounted to 55.2 trillion won, which is an increase of 0.8% compared to the same month of the previous year. While the sales of durable goods (3.6%) and non-durable goods (0.2%) increased compared to the previous year, sales of semi-durable goods (1.1%) decreased. When pricing factors are removed, the retail sales index decreased by 0.2% compared to the same month of the previous year.
In May 2025, the number of new corporations was 92,285, representing a decline of 7.5% compared to the same month of the previous year. The number of newly established corporations in technology-based industries was 16,509, which is a decrease of 6.9% year-on-year. By industry, entrepreneurship declined in manufacturing (15.4%), services (6.5%), and construction (15.7%).
In June 2025, the number of employees in small and medium-sized enterprises was 25,738,000, a decrease of 54,000 compared to the same month of the previous year. By size, the number of employees in companies with 5 to 299 employees increased by 131,000 compared to the previous year, but the number of employees in companies with 1 to 4 employees decreased by 185,000, resulting in an overall decrease. By industry, employment declines continued in the manufacturing and construction sectors.
The Korea SMEs & Startups Institute (KOSI) noted, "As key economic indicators such as production, employment, and entrepreneurship for small and medium enterprises remain weak, the expansion of external uncertainties, including tariffs, is expected to pose downward risks to the future economy of small and medium enterprises." They added, "It is necessary to explore policy responses that can prevent damage to small and medium enterprises based on an analysis of the domestic transmission path of external uncertainties."