A growing number of small and medium-sized companies that received government funding are implementing wage cuts.

About 1,000 heads of organizations representing SMEs said they will cut wages to become a model for other businesses receiving state support.

The president of the Korea Federation of Small and Medium Business promised that about three million small businesses will implement restructuring measures to improve their competitiveness. However, the official said it is up to the individual companies to decide on when to enforce the wage cuts.