Seoul: Small business owners in South Korea saw their income drop more than 10 percent from a year earlier in 2024 amid sluggish consumer sentiment, a poll showed Tuesday.
According to Yonhap News Agency, the survey conducted by Mono Research from January 20 to February 7 on 500 small business owners revealed an average income decrease of 13.3 percent as reported by the respondents.
Of the respondents, 72 percent experienced a decline in net income, while only 28 percent reported an increase. The poll, commissioned by the Federation of Korean Industries (FKI), highlighted the challenges faced by small business owners during this period.
Looking ahead, 62.2 percent of respondents anticipated further declines in net profit in 2025, with an expected average decrease in income of 7.2 percent.
The survey identified the cost of raw materials as the leading source of financial burden for small businesses, at 22.2 percent, followed by labor costs and rent, at 21.2 percent and 18.7 percent, respectively.
On average, respondents held loans amounting to 120 million won (US$83,933), with monthly interest payments averaging 840,000 won.
"Household consumption fundamentals are weakening and the domestic market is freezing, deepening the struggles of many self-employed business owners," an FKI official stated.