Ministry of SMEs and Startups Releases First Official National Statistics as of End 2018
SME Sales Reach 2,662.9 Trillion KRW, Accounting for 48.5% of Total Corporate Sales
5 out of 10 Small Businesses Located in the Seoul Metropolitan Area
The status of small and medium enterprises in 2018 announced by the Ministry of SMEs and Startups. Table = Provided by the Ministry of SMEs and Startups
[Asia Economy Reporter Kim Heeyoon] As of the end of 2018, small and medium-sized enterprises (SMEs) accounted for 99% of all domestic companies, and 83% of workers were employed by SMEs.
According to the 2018 Basic Statistics on SMEs released by the Ministry of SMEs and Startups on the 29th, the number of SMEs increased by 5.4% from 6.3 million in 2017 to 6.639 million in 2018. The proportion of SMEs among all companies remained the same as in 2017 at 99.9%.
The major industries for SMEs were wholesale and retail trade (24.9%), real estate (16.8%), and accommodation and food service activities (12.0%). The share of real estate increased by 1.3% compared to 2017, while wholesale and retail trade and accommodation and food service activities decreased by 0.7% and 0.4%, respectively.
The number of SME employees was 17.1 million in 2018, a 2.5% increase from 16.69 million in 2017. The proportion of SME employees among all company employees was 83.1%, the same as in 2017, statistically reaffirming the '9983' figure, meaning 99% of companies and 83% of workers.
By industry, the shares were manufacturing (19.6%), wholesale and retail trade (19.2%), and accommodation and food service activities (10.3%). Compared to the previous year, the shares of real estate and accommodation and food service activities increased by 0.7% and 0.2%, respectively, while construction decreased by 0.7%, and business facility management, business support, and rental services decreased by 0.5%.
SME sales amounted to 2,662.9 trillion KRW, a 2.9% increase from 2017. However, their share of total corporate sales decreased by 0.1% to 48.5%.
Five out of ten SMEs were located in the Seoul metropolitan area (Seoul, Incheon, Gyeonggi). SMEs in the metropolitan area numbered 3.388 million, accounting for 51.0% of all SMEs. The number of SME employees in the metropolitan area was 9.236 million, representing 54.0% of all SME employees.
This statistic is the first official SME statistic approved as a national statistic in August this year, following a pilot compilation last year.
Jung Yeonho, head of the Statistics Analysis Division at the Ministry of SMEs and Startups, said, "The Basic Statistics on SMEs is the first official statistic that allows us to understand the status of SMEs, which is very meaningful," adding, "It will serve as a standard for various statistics produced by the Ministry of SMEs and Startups in the future."
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