Number of Startups in June Increases by 30% Compared to Previous Year

Announcement of 'KOSBI Small and Medium Business Trends September 2020 Issue'

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The number of startups in June increased by more than 30% compared to the same month last year. On the 27th, the Small and Medium Business Institute (President Lee Byung-heon) announced this in the 'KOSBI SME Trends September 2020 issue.'

The number of startups in June was 128,696, an increase of 29,740 compared to the same month last year, mainly in the service sector and corporate enterprises. This represents a 30.1% increase. The service sector rose 33.0% year-on-year, driven by significant growth in real estate and education, while corporate enterprises increased by 43.7%.

Retail sales in July increased by 0.8% year-on-year, continuing an upward trend for the third consecutive month, mainly due to non-store retailing. Online shopping rose 15.8% year-on-year, with both mobile shopping (+21.2%) and internet shopping (+5.8%) increasing.

The number of employees in SMEs with fewer than 300 employees in August was 24,385,000, a decrease of 313,000 (1.3%) compared to the same month last year, but the decline slowed compared to the 333,000 decrease in the previous month. The number of self-employed workers was 5,555,000, decreasing by 106,000 (1.9%) year-on-year, mainly among self-employed workers with employees.

An official from the Small and Medium Business Institute stated, "Despite the economic contraction caused by COVID-19, key indicators such as sustained consumer spending and increased startups have performed well. However, since the impact of strengthened social distancing measures following the resurgence of COVID-19 after mid-August has not yet been reflected, it is necessary to closely monitor future changes in these indicators."