What was the September outlook for Korean SMEs and how did the index change from August?

The small business health index for September rose to 84.8, up 4.8 points from August. It marked the second straight monthly increase, but the reading stayed below 100, which means pessimists still outnumber optimists.

Why are Korean small and midsized enterprises still struggling despite the better September outlook?

More than half of respondents said sluggish sales were their biggest management hurdle. Other concerns were rising raw material costs at 41 percent, cutthroat competition at 31.4 percent and high labor costs at 27.8 percent.

What were the manufacturing and nonmanufacturing readings in the SME sentiment survey?

The manufacturing sector index for September came to 87.1, up 7 points from the prior month. Nonmanufacturing companies recorded 83.7, up 3.7 points.

SME biz sentiment up for 2nd month for Sept. but still below par

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Summary

Korean smaller companies’ business outlook rose for the second consecutive month for September, but it remained below par. The small business health index for next month stood at 84.8, up 4.8 points from August, according to a poll of 3,060 SMEs by the Korea Federation of SMEs. Manufacturing came in at 87.1 and nonmanufacturing at 83.7. More than half of respondents cited sluggish sales as their biggest hurdle.

Key Facts

The survey covered 3,060 small and midsized enterprises.
The small business health index for September was 84.8, up 4.8 points from August.
The manufacturing sector index for September was 87.1, while the nonmanufacturing index was 83.7.
More than 50 percent of respondents cited sluggish sales as the biggest hurdle, followed by rising raw material costs at 41 percent, cutthroat competition at 31.4 percent and high labor costs at 27.8 percent.
The survey was taken from Aug. 12 to 19, and the average capacity utilization rate of manufacturing SMEs was 75.2 percent in July, down 0.7 percentage point from the previous month.

By Yonhap

Published Aug 30, 2026 3:20 pm KST

Prime Minister Han Seong-sook, front row third from left, poses with other officials at a conference on regulations of small and midsized enterprises (SMEs) at KBIZ-Korea Federation of SMEs in Seoul, Aug. 12. Yonhap

Korean smaller companies' business outlook rose for the second consecutive month for September but still remains below par, a poll showed Sunday.

The survey of 3,060 small and midsized enterprises (SMEs) said the small business health index (SBHI) came to 84.8 for next month, up 4.8 points from August, according to the Korea Federation of SMEs.

The index rose for two straight months since it reached 80 for August from 78.2.

A reading below 100 indicates pessimists outnumber optimists.

According to the findings, the SBHI for the manufacturing sector came to 87.1 for September, up 7 points from the prior month, with that for nonmanufacturing companies rising by 3.7 points to 83.7.

More than 50 percent of the respondents cited sluggish sales as the biggest hurdle to their management, followed by rising raw material costs at 41 percent and cutthroat competition making up 31.4 percent. High labor costs was another factor causing concerns at 27.8 percent.

The average capacity utilization rate of manufacturing SMEs came to 75.2 percent in July, down 0.7 percentage point from the previous month, according to the survey.

The survey was taken from Aug. 12-19.

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