The business sentiment index for January next year as felt by small and mid-size enterprises was found at 79.3. It rose 11.2 points from a year earlier, but still remained below 80, with many small and mid-size enterprises expecting the economy to deteriorate.
On the 30th, the Korea Federation of Small and Medium Enterprises said that in the results of the "January 2026 SME business outlook survey," conducted from the 11th to the 17th on 3,136 small and mid-size enterprises, the January business outlook index (SBHI) was 79.3, up 2.8 points from the previous month. It rose 11.2 points from the same month a year earlier (68.1). But it still remained below 80.
The SME business outlook index quantifies a survey of small and mid-size enterprises on economic conditions and business outlook; a reading above 100 means more positive views. A reading below 100 means more negative views.
The January outlook for manufacturing rose 1.6 points from the previous month to 82.2, and nonmanufacturing rose 3.2 points to 77.9. In manufacturing, ▲ fabricated metal products (69.0→88.6, up 19.6p) ▲ primary metals (72.1→83.3, up 11.2p) led gains as 12 industries rose from the previous month. In contrast, ▲ industrial machinery and equipment repair (80.8→68.7, down 12.1p) ▲ rubber and plastic products (81.3→73.5, down 7.8p) were among 11 industries that fell from the previous month.
In nonmanufacturing, ▲ construction (71.8→73.5, up 1.7p) ▲ services (75.3→78.8, up 3.5p) rose. In services, five industries including ▲ transportation (77.4→85.3, up 7.9p) ▲ wholesale and retail (72.0→76.2, up 4.2p) climbed from the previous month, while five industries including ▲ publishing, video, broadcasting and telecommunications, and information services (90.6→86.9, down 3.7p) ▲ lodging and food service (82.0→79.0, down 3.0p) fell.
By item, ▲ funding conditions (75.8→81.8) ▲ operating profit (74.3→77.2) ▲ exports (82.2→83.8) ▲ domestic sales (76.6→77.6) all rose from the previous month. Employment, which moves countercyclically (97.4→98.3), was expected to worsen from the previous month.
In December, the biggest management challenge for small and mid-size enterprises was "sluggish sales (product sales)" (52.8%), followed by ▲ rising labor costs (38.0%) ▲ higher raw material (materials and supplies) prices (31.2%) ▲ intensifying competition among firms (25.9%).