In June, production in the small and medium-sized manufacturing industry decreased by 3.4% compared to the same month last year due to fewer working days and difficulties in the domestic market.
According to the August issue of the Korea SMEs & Startups Institute (KOSI) 'KOSI Small and Medium Enterprises Trends' published on the 27th, retail sales in the small and medium-sized manufacturing industry in March amounted to 53.3 trillion won, a 1.5% increase compared to the same month last year. Sales of durable goods (4.1%) and non-durable goods (1.9%) increased compared to the same month last year, but sales of semi-durable goods (-2.9%) decreased. In particular, sales of durable goods increased, centered on passenger cars (13%), while sales of semi-durable goods decreased, primarily in entertainment, hobbies, and sports equipment (-6.6%).
The number of startups in June was 94,111, an increase of 1.1% compared to the same month last year, while the number of technology-based startups was 17,632, up 5.2% from the same month last year. By sector, the number of corporations in manufacturing (-7.2%) and construction (-4.4%) decreased, while the service sector (+2.2%) saw an increase.
In July, the number of employees in small and medium-sized enterprises was 25,649,000, a decrease of 72,000 compared to the same month last year. By scale, the number of employees in companies with 5 to 299 employees increased by 72,000 compared to the same month last year, but the number of employees in companies with 1 to 4 employees decreased by 144,000, resulting in an overall decline. By sector, the employment decline continued in manufacturing (-90,000) and construction (-110,000).
The Korea SMEs & Startups Institute (KOSI) noted, 'As indicators such as production, employment, and startups are sluggish, particularly in the small and medium-sized manufacturing sector, the expansion of external uncertainties is expected to pose downward risks in the future.' They added, 'It is necessary for policymakers to continuously monitor trends in major risk sectors and to analyze domestic ripple effects to prevent damage to small and medium-sized enterprises.'