Business sentiment for April as felt by small and medium-sized enterprises deteriorated from the previous month.
The Korea Federation of Small and Medium Enterprises announced on the 30th the results of the "April 2026 SME business outlook survey," conducted from Mar. 13 to 19 on 3,057 small and medium-sized enterprises nationwide.
The April business outlook sentiment index (SBHI) was 80.8, down 1.7 points (p) from the previous month. The SME business outlook index is derived from a survey of SMEs on their perceived economy and business outlook; a reading above 100 indicates more positive views. A reading below 100 indicates more negative views.
By industry, the April outlook for manufacturing was 80.7, a sharp drop of 7.4p from the previous month. Non-manufacturing was 80.8, up 0.8p. Construction was 68.8, down 1.5p, and services were 83.2, up 1.3p.
In manufacturing, five sectors rose, led by ▲beverages (87.2→91.9) and ▲electronic components, computers, video, audio and communications equipment (90.5→94.8). However, 18 sectors fell, including ▲rubber and plastic products (86.6→69.4), ▲textiles (88.4→72.1), and ▲printing and reproduction of recorded media (90.4→74.1). In non-manufacturing, construction (70.3→68.8) declined, while services (81.9→83.2) rose 1.3p.
In services, five sectors rose, including ▲real estate (92.8→102.4) and ▲arts, sports and leisure-related services (85.1→91.6), while five sectors fell, including ▲repair and other personal services (82.8→76.8) and ▲education services (88.1→83.8).
By item across all industries, exports (86.0→85.0), operating profit (77.4→76.5), domestic sales (82.0→81.3), and funding conditions (80.3→80.0) all declined. However, employment (97.4→97.0), which moves inversely as a time series, was expected to improve from the previous month.
As for major management difficulties faced by SMEs, "sluggish sales (product sales)" accounted for the highest share at 49.0%, followed by rising raw material prices (37.9%), intensifying competition among companies (31.7%), and rising labor costs (30.3%).
Meanwhile, the average operating rate of small and medium manufacturers in February was 73.6%, down 0.2%p from the previous month.