'SMEs Gloomy Even During Chuseok': 40% Say "Financial Situation More Difficult Than Last Year"

[Financial News] Four out of ten small and medium-sized enterprises (SMEs) responded that their financial situation for this Chuseok is more difficult than last year due to sluggish sales and rising labor costs.
According to the '2026 Survey on SME Chuseok Funding Needs' released by the Korea Federation of SMEs (KBIZ) on the 17th, the percentage of respondents stating that "financial conditions are difficult this Chuseok compared to last year" was 40.0%, higher than those who said "it is smooth" (12.9%). The response that "it is no different from last year" was recorded at 47.1%.
This survey was conducted from the 1st to the 7th targeting 1,000 small and medium-sized enterprises.
The most common cause of financial difficulties (multiple responses) was 'sluggish sales/revenue' (71.5%). This was followed by rising prices of raw materials and supplies (59.5%), rising labor costs (21.8%), and delays in collecting sales proceeds (12.8%).
Respondents indicated that an average of 256.45 million won is needed for this Chuseok. The average shortfall compared to the required funds was found to be 58.48 million won.
Measures to secure insufficient funds for Chuseok were, in order: early collection of payment for delivered goods (40.6%), borrowing from financial institutions (38.3%), and deferring payments (29.9%).
It was found that 45.1% of companies have plans to pay Chuseok bonuses. Regarding the level of bonus payments, percentage payments were 37.7% of the base salary, while fixed payments averaged 665,000 won.
The response that conditions for raising funds through financial institutions were 'difficult' compared to last year was 27.0%, which is more than double the response that they were 'smooth' (12.6%). The response that they were 'no different from last year' was 60.4%.
Regarding plans for additional time off for Chuseok, 85.1% answered that they have no separate plans other than public holidays.
Kim Hui-jung, Head of the Economic Policy Division at the Korea Federation of SMEs (KBIZ), stated, "The financial pressure on small and medium-sized enterprises (SMEs) is so severe that they are not only attempting to collect payment for delivered goods early to secure much-needed funds for the holidays but are also considering delaying payment settlements." He added, "Special attention and preemptive support from the financial sector are urgently needed to ensure that policy warmth quickly reaches vulnerable sectors, such as traditional market merchants."
[email protected] Kim Hyun-chul Reporter