Production Index for Small and Medium Manufacturing and Service Industries Rises by 0.8%
Retail Sales Increase by 1.1%... Semi-durable Goods Decline
Number of SME Employees Grows While Startups Decrease
In April of this year, both the production index for small and medium-sized manufacturing and service industries increased compared to the same month last year. This is attributed to an increase in the number of business days, as well as a recovery led by the transportation·warehousing and health·social welfare sectors.
According to the June 2025 issue of 'KOSI SME Trends' published by the Korea Small Business Institute on the 25th, production in small and medium-sized manufacturing (+0.8%) in April increased year-on-year, driven by an increase in the number of business days (+1.0 days) and growth in semiconductors and other transportation equipment. Production in small and medium-sized service industries (+0.8%) also increased year-on-year, mainly due to transportation·warehousing and health·social welfare services.
During the same period, retail sales totaled 53.3 trillion won, up 1.1%. By product category, sales of durable goods (4.2%) and non-durable goods (2.0%) increased, while sales of semi-durable goods such as clothing (-4.6%) declined. However, after removing the price factor, the retail sales index decreased by 0.1% compared to the same month last year.
In May of this year, the number of employees at small and medium-sized enterprises was 25,834,000, an increase of 78,000 compared to the same month last year. By company size, the number of employees at companies with 1-4 employees decreased by 135,000, while those with 5-299 employees increased by 213,000. Although employment continued to decline due to sluggish performance in the manufacturing and construction sectors, the pace of decline slowed compared to the previous month. Among wage workers in SMEs, the number of regular employees (+175,000) and temporary employees (+44,000) increased, while the number of daily workers (-57,000) decreased.
During the same period, the number of newly established companies was 101,751, a decrease of 3.0% compared to the same month last year. By industry, the number of startups declined across major sectors, including manufacturing (-6.8%), services (-2.5%), and construction (-5.5%). However, the number of technology-based startups was 18,070, an increase of 0.6% year-on-year.
A representative from the Korea Small Business Institute stated, "Although major economic indicators for SMEs, such as production and employment, showed a slight increase compared to the same month last year, external uncertainties such as the Middle East conflict are expected to pose downside risks to future SME economic indicators." The representative added, "Policymakers should continue to monitor the effects of the supplementary budget on domestic economic recovery, while also making policy efforts to mitigate the negative impact of increasing external uncertainties on the domestic market."
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