This file photo from Feb. 2, 2025, shows small businesses operating in Seoul’s shopping district of Myeongdong. (Image courtesy of Yonhap)
SEOUL, Feb. 25 (Korea Bizwire) — Small business owners in South Korea saw their income drop more than 10 percent from a year earlier in 2024 amid sluggish consumer sentiment, a poll showed Tuesday.
According to the survey conducted by Mono Research from January 20 to February 7 on 500 small business owners, the level of income decreases reported by the respondents was averaged at 13.3 percent.
Of the respondents, 72 percent said they saw a decline in net income, while only 28 percent reported an increase, according to the poll commissioned by the Federation of Korean Industries (FKI).
Looking ahead, 62.2 percent of respondents anticipated a further decline in net profit in 2025, with an expected average decrease in income of 7.2 percent.
The cost of raw materials was cited as the leading source of financial burden for small businesses, at 22.2 percent, followed by labor costs and rent, at 21.2 percent and 18.7 percent, respectively.
The average amount of loans held by individual respondents was 120 million won (US$83,933), with respondents paying an average of 840,000 won per month in interest.
“Household consumption fundamentals are weakening and the domestic market is freezing, deepening the struggles of many self-employed business owners,” an FKI official said.
(Yonhap)
