South Korea-Small business doing it tough.

Korean small businesses diminish at a fast rate

13/03/2009

According to the Bank of Korea, the Financial Supervisory Service and the Small and Medium Business Administration, the number of small store owners in Korea reached 5.59 million in January this year, down from 6.06 million recorded in September 2008.

Reportedly, 17,764 small eateries closed down in January this year, a 14% decrease on the previous month. The closure of Korean eateries is mainly the result of the global economic downturn, affecting household spending.

Korean household income averaged 3.37 million won (A$3,457) during 2008, down 0.2% in comparison with 2007, taking inflation in account. Average debt per household increased 7.4% year-on-year to 41.28 million won (A$42,310) in 2008 (Korea Herald, 2009).

Many small eateries in Korea offer customers the option to grill beef themselves on an integrated BBQ plate on their dining table. The BSE case in the US at the end of 2003 damaged the reputation of imported beef and resulted in a diminished number of these BBQ eateries. This segment of the food service industry has steadily recovered since 2005 and has been predominantly serving Australian beef while US product was absent from the market.