August 01, 2022 13:29
One out of three mom-and-pop stores face closure due to sluggish business even after the worst of coronavirus lockdowns is over.
The Federation of Korean Industries surveyed 500 owners of small businesses across the country from June 30 to July 8, and found that 33 percent are considering closing down.
On top of financial hardships due to soaring prices and high interest rates, the recent resurgence of COVID infections weighs heavily on them.
Troubled owners cited declining sales as the main reason with 32.4 percent, followed by fixed costs including rent and payroll (16.2 percent), and difficulties repaying their debts (14.2 percent).
They suffered an average 13.3 percent decline in sales on-year in the first half of this year even though lockdown has been lifted.
Seven out of 10 respondents saw sales fall, and more than half expect sales in the second half of this year to drop even further.
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