In the previous month, the number of people employed by small and medium-sized enterprises was tallied at 25.75 million. The figure increased from the same period a year earlier. The business outlook for small and medium-sized enterprises also improved slightly.
According to the Small and Medium Enterprise Trends October 2025 issue released by Korea SMEs & Startups Institute (KOSI) on the 30th, in September the number of people employed by small and medium-sized enterprises increased by 88,000 from the same month a year earlier. While the number of employees at firms with 1–4 workers fell by 93,000 from a year earlier, employment at firms with 5–299 workers grew by 180,000, leading to an overall increase in employment at firms with fewer than 300 workers.
Last month, the number of wage workers at small and medium-sized enterprises rose by 163,000 from September last year to 19.173 million. However, employment in small and medium-sized manufacturing and construction fell by 87,000 and 93,000, respectively, compared with September last year.
This year, the small and medium-sized enterprise performance business survey index was tallied at 75.7, up 3.2 points from the same period last year. The indicator measures SMEs' subjective outlook on business and the economic environment; a reading of 100 or above means more firms view conditions positively, while below 100 indicates the opposite.
KOSI analyzed, "It appears to reflect both the base effect from last year's economy, when domestic demand was subdued, and the domestic demand boost from issuing 'consumption coupons.'"
Startup activity and lending conditions worsened. In August this year, the number of startup corporations was 89,686, down 2.0% from July. Last month, the outstanding loan balance to small and medium-sized enterprises at deposits banks increased by 4 trillion won from the previous month to 1,065.8 trillion won. It rose by a similar scale to the previous month, attributed to holiday season funding demand around Chuseok.
KOSI said, "Although the business conditions perceived by small and medium-sized enterprises were generally assessed as better than last year, downside risks remain, including tariff uncertainty and geopolitical conflicts," adding, "Policy efforts are needed to minimize negative impacts on small and medium-sized enterprises."