SEOUL, July 10 (Yonhap) — South Korea’s small businesses saw their net profits shrink significantly from a year earlier in the first half amid a slowing economy, a poll showed Thursday.
According to the survey of 500 self-employed small business owners, their net profits over the past six months fell 15.3 percent on-year.
Sales dropped at a similar rate of 15.2 percent from a year earlier.
The most cited challenge for businesses owners was shrinking consumer demand, followed by rising materials costs and increasing rent and taxes.
Meanwhile, respondents expressed a grim outlook for the next six months, with more than 60 percent saying they expect both sales and net profits to decline in the second half.
Of the respondents, 44 percent said they were considering closing their businesses in the next three years.
The survey was commissioned by the Federation of Korean Industries, and was conducted by local polling agency Mono Research from March 13 to 23.
A building located in South Korea’s fashion and shopping district of Myeongdong is empty on July 6, 2025. (Yonhap)
fairydust@yna.co.kr
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