SMBI: "January SME Manufacturing Output Up 9.8%, SME Services Up 5.3%"

Number of Startups Reaches 105,097, Up 18.8%

Number of Employed in February: 28,413,000

In January of this year, production in both small and medium-sized manufacturing and service sectors increased evenly.

Growth Rate of Production Index in Small and Large Manufacturing Enterprises. Korea Institute of Startup and Entrepreneurship Development

According to the March issue of "KOSI SME Trends" published by the Small and Medium Business Institute, production in small and medium-sized manufacturing increased by 9.8% year-on-year as output rose in automobiles, electronics, and other sectors. Production in the small and medium-sized service sector increased by 5.3%.

The number of new startups in January was 105,097, up 18.8% from the same month a year earlier. By sector, the increase was 18.9% in services, 17.3% in construction, and 14.9% in manufacturing.

The number of startups in technology-based industries stood at 23,899, marking a 33.1% year-on-year increase.

Employment Increase or Decrease by Business Size. Small and Medium Business Administration Research Institute

The number of employed persons in February was approximately 28,413,000, up 234,000 from the same month of the previous year. Employment at businesses with 300 or more employees increased by 126,000, while employment at businesses with fewer than 300 employees rose by 108,000.

Among businesses with fewer than 300 employees, the trends varied by size. The number of employees at businesses with 5 to 299 employees increased by 152,000, while the number at businesses with 1 to 4 employees decreased by 45,000. By industry, manufacturing continued to decline, with 22,000 fewer employees; however, the rate of decrease has slowed.

Among wage workers, the number of regular employees increased by 69,000 and daily workers by 29,000, but temporary workers decreased by 19,000.

The Small Business Health Index (SBHI), reflecting the perceived financial conditions of small and medium-sized manufacturers in February, fell by 6.4 points from the previous month to 75.5. As of the end of January, the delinquency rate on loans for small and medium-sized enterprises (SMEs) was 0.82%, up 0.10 percentage points from the previous month. This is 0.76 percentage points higher than that of large enterprises (0.13%).

The Small and Medium Business Institute stated, "As we enter 2026, the business conditions for SMEs appear to be improving, with recovery in production as well as improvements in startup and employment indicators. However, financial conditions remain unstable, as seen in the rising delinquency rates. With the outbreak of war in the Middle East further increasing external uncertainties, policy efforts are needed to minimize the negative impacts on production and exports for SMEs."

This content was produced with the assistance of AI translation services.