Federation of Korean Industries, survey on performance and prospects of 500 people
First half sales 9.8%↓ Net profit 9.9%↓
More than half “Sales will decrease in the second half”
Self-employed people expressed their opinion that “sales in the first half of this year are decreasing and the outlook for the second half is not bright.” Thanks to the Corona 19 endemic, domestic demand was expected to recover, but the pace of economic recovery is slow.
The Federation of Korean Industries announced on the 2nd that as a result of the survey on “Performance in the first half of 2023 and prospects for the second half,” 63.4% of respondents said that sales in the first half of this year decreased compared to the same period last year. Respondents’ sales in the first half of the year decreased by an average of 9.8% compared to the same period last year, and net profit decreased by 9.9%.
This is the result of a survey of 500 self-employed people engaged in restaurants, accommodations, wholesale and retail, etc., commissioned by the FKI to market research firm Mono Research.
The most burdensome management cost increase this year was raw materials and material costs (20.9%), labor costs (20.0%), electricity and gas utility bills (18.2%), and rent (14.2%), in that order.
As for the size of the self-employed business owners who responded to the survey, 75.4% were less than 100 million won and 13.4% were more than 150 million won, and the average loan amount was around 83 million won. Factors contributing to the increase in loans were fixed cost expenditures such as rent, labor costs, and utility bills (46.9%), repayment of interest on existing loans (25.0%), and expenditure on raw materials and materials (15.2%).
In addition, 50.8% of the respondents said that sales in the second half would decrease compared to the first half. 84.4% of respondents predicted that the economy would recover after next year.
40.8% of respondents said they were considering closing their business within three years.
The main reasons were continued deterioration in business performance (29.4%), deteriorating financial conditions and burden of loan repayment (16.7%), and uncertain prospects for economic recovery (14.2%).
The self-employed asked the government for support such as curbing or lowering public utility rates such as electricity and gas rates (19.0%), expanding financial support such as low-interest loans (18.5%), and supporting consumption promotion to recover consumer sentiment (16.6%).
2023-07-02 12:53:00
#Depressed #Selfemployed #people #suffering #sluggish #domestic #demand
