The Korea SMEs & Startups Institute (KOSI) announced on the 6th that it has selected 10 major issues for small and medium enterprises this year, including the strengthening of protectionism centered on the United States and the European Union (EU), and the deterioration of revenue due to high exchange rates.
The KOSI projected in its report titled 'Top 10 Issues for Small and Medium Enterprises in 2025 and Response Directions' that small and medium enterprises will face a management environment characterized by economic growth slowdown, intensifying trade disputes between countries, and deepening technology gaps this year.
The report forecasted that protectionism in the U.S. and EU will have a significant impact on exports, and the increase in import costs due to the depreciation of the won (rise in the exchange rate of the won against the dollar) will worsen revenue.
It also analyzed that the productivity gap between leading corporations and latecomer corporations in small and medium enterprises is widening, and the number of marginal corporations will increase due to rising arrears rates and interest burdens.
It pointed out that amid increasing management uncertainty due to conflicting policies such as global decarbonization regulations and U.S. fossil fuel support policies, the gap in the adoption of new technologies between large and small enterprises is also deepening.
It noted that structural issues such as the youth's aversion to small and medium enterprises, aging workforce, and the widening gap between small and medium enterprises in the metropolitan and non-metropolitan areas remain unchanged.
The KOSI emphasized that specific policies to resolve the labor shortage, promote the adoption of new technologies, and ensure financial stability must be implemented promptly, stating that "close cooperation between the government and corporations is necessary."