January Issue of KOSI SME Trends Published
In November of last year, production in small and medium-sized manufacturing businesses saw a slight decrease compared to the previous year. In contrast, small and medium-sized service businesses experienced growth, driven by sectors such as finance and insurance.
According to the January 2026 issue of 'KOSI SME Trends' published by the Korea Small Business Institute on January 28, production in small and medium-sized manufacturing businesses in November of last year declined by 4.3% year-on-year, as the number of working days decreased from 23.5 to 22.5 days. Meanwhile, small and medium-sized service businesses showed an increase compared to the same month of the previous year, despite a reduction in business days, thanks to growth in finance and insurance sectors.
During the same period, retail sales amounted to 56.6 trillion won, up 3.3%. Sales increased across all categories, including durable goods (5.2%), semi-durable goods (0.1%), and non-durable goods (3.7%). However, the seasonally adjusted retail sales index fell compared to the previous month, due to a rebound in consumption following the Chuseok holiday in October.
In December of last year, the number of employed persons increased by 168,000 compared to the same month of the previous year. The number of employees at businesses with 300 or more workers rose by 207,000, while those at businesses with fewer than 300 employees fell by 39,000. The number of employees at businesses with 5 to 299 workers increased by 59,000, but those at businesses with 1 to 4 workers decreased by 98,000.
By sector, manufacturing (-83,000) and construction (-68,000) continued to decline. Among wage workers, the number of regular workers (8,000) and daily workers (21,000) increased, but the number of temporary workers (-23,000) decreased.
In November of last year, the number of newly established businesses was 87,863, a 2.6% decrease compared to the same month of the previous year. Due to a reduction of one registration day, new businesses decreased across most sectors, including manufacturing (-8.6%), construction (-9.4%), and services (-1.4%), while technology-based startups increased by 5.1%.
A representative from the Korea Small Business Institute stated, "The business conditions for small and medium-sized enterprises are showing signs of easing, centered on a recovery in consumption, but uncertainties in external conditions such as high exchange rates and tariffs remain high. Policymakers should pursue macroeconomic recovery policies while also seeking mid- to long-term policy directions to enable substantial growth for small and medium-sized enterprises."
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