As the Middle East war drags on, damage to domestic small and midsize companies is expanding.
The Ministry of SMEs and Startups said that as of noon on the 15th, a total of 618 reports of damage and difficulties (including concerns) related to the Middle East war had been filed by small and midsize companies. That was 69 more than a week earlier. Of all reports, actual damage and difficulties accounted for 445, while 106 cited concerns about a potential worsening of the situation.
By type of damage (multiple responses), transport disruptions were the most common at 50.3%. That was followed by higher logistics costs at 36.9% and canceled or suspended contracts at 34.6%. Other issues included business trip disruptions (19.6%) and nonpayment (18.2%).
In one case, Company A has about 10 containers adrift at sea for an extended period, and six containers that were shipped out to Busan Port were returned and are now stored at the plant. As a result, shipments are delayed and there are serious disruptions across logistics.
Company B was hit directly by rising raw material prices. The company saw purchase unit prices for packaging materials surge more than 40% from previous levels, increasing the expense burden and creating difficulties across operations.
By country, Iran-related damage accounted for 15.8% and Israel for 14.2%. Damage related to other Middle Eastern countries, such as the United Arab Emirates (UAE) and Saudi Arabia, totaled 68.1%.