By Park Si-soo
Middle East Respiratory Syndrome (MERS) is taking a large toll on small and medium-sized enterprises (SMEs), especially those in the fields of tourism, leisure and logistics.
They have suffered steep falls in sales since the outbreak of the disease late last month, and many are now on the brink of collapse.
"It's a lot harder than last year when the nation was hit in the aftermath of the Sewol ferry sinking. Companies have stopped ordering machinery parts," said Kim Seung-ho, 50, head of a small company making bearings.
"I really hope the economy will emerge from the shock of MERS at the earliest time. Otherwise, a lot of marginal companies may have to fold."
Fear and uncertainty about MERS is keeping consumers from spending, dimming the hopes of a recovery in domestic consumption in the second half of the year, company officials said.
They say the MERS scare should subside before the summer vacation season begins in July, otherwise numerous SMEs will face severe financial hardships during the rest of the year.
President Park Geun-hye's surprising visit to Dongdaemun Market, which is home to a cluster of SMEs and mom-and-pop stores in Seoul, on Sunday reflects the government's sense of urgency to tackle the issue.
Officials at the market said the number of foreign visitors, mostly from China, plunged by a staggering 80 percent in recent weeks, with a 30 percent drop for Korean shoppers.
According to state data, an estimated 108,000 foreign tourists have canceled their trips to Korea because of MERS.
The finance ministry said last week it would provide SMEs and regions affected by MERS with emergency financial support worth more than 400 billion won ($360 million).
The support package includes loans totaling 100 billion won on low interest rates. The ministry also plans to roll over the maturity of income tax returns of some businesses.
The culture and tourism ministry on Monday unveiled its own support package targeting MERS-afflicted small and medium-sized travel agencies, hotels and other cultural and leisure services providers.
Banks and insurance companies also have rolled up their sleeves to help them. Shinhan Bank will lend MERS-hit SMEs emergency loans of up to 500 million won on low interest rates. It will also delay the maturity date of their loans. KB Kookmin Bank, NH NongHyup Bank, Korea Development Bank and many other lenders announced similar aid programs.
The Financial Supervisory Service meanwhile will offer various financial consulting services to MERS-hit companies.
Middle East Respiratory Syndrome (MERS) is taking a large toll on small and medium-sized enterprises (SMEs), especially those in the fields of tourism, leisure and logistics.
They have suffered steep falls in sales since the outbreak of the disease late last month, and many are now on the brink of collapse.
"It's a lot harder than last year when the nation was hit in the aftermath of the Sewol ferry sinking. Companies have stopped ordering machinery parts," said Kim Seung-ho, 50, head of a small company making bearings.
"I really hope the economy will emerge from the shock of MERS at the earliest time. Otherwise, a lot of marginal companies may have to fold."
Fear and uncertainty about MERS is keeping consumers from spending, dimming the hopes of a recovery in domestic consumption in the second half of the year, company officials said.
They say the MERS scare should subside before the summer vacation season begins in July, otherwise numerous SMEs will face severe financial hardships during the rest of the year.
President Park Geun-hye's surprising visit to Dongdaemun Market, which is home to a cluster of SMEs and mom-and-pop stores in Seoul, on Sunday reflects the government's sense of urgency to tackle the issue.
Officials at the market said the number of foreign visitors, mostly from China, plunged by a staggering 80 percent in recent weeks, with a 30 percent drop for Korean shoppers.
According to state data, an estimated 108,000 foreign tourists have canceled their trips to Korea because of MERS.
The finance ministry said last week it would provide SMEs and regions affected by MERS with emergency financial support worth more than 400 billion won ($360 million).
The support package includes loans totaling 100 billion won on low interest rates. The ministry also plans to roll over the maturity of income tax returns of some businesses.
The culture and tourism ministry on Monday unveiled its own support package targeting MERS-afflicted small and medium-sized travel agencies, hotels and other cultural and leisure services providers.
Banks and insurance companies also have rolled up their sleeves to help them. Shinhan Bank will lend MERS-hit SMEs emergency loans of up to 500 million won on low interest rates. It will also delay the maturity date of their loans. KB Kookmin Bank, NH NongHyup Bank, Korea Development Bank and many other lenders announced similar aid programs.
The Financial Supervisory Service meanwhile will offer various financial consulting services to MERS-hit companies.
![[INTERVIEW] Reform, foreign talent crucial to revitalizing Korean economy: McKinsey](https://img.koreatimes.co.kr/upload/thumbnailV2/b6015d6d242a4b9399ee2ed3f94d6ba1.jpg/dims/resize/178/optimize)
![[INTERVIEW] Korea, Netherlands to sign multiple deals in chip, energy, defense on Yoon's state visit: Dutch ambassador](https://img.koreatimes.co.kr/upload/thumbnailV2/15208505b4dc4e918fb52aeecd0a840c.jpg/dims/resize/178/optimize)
![[INTERVIEW] Allgot hits jackpot with frozen gimbap in US](https://img.koreatimes.co.kr/upload/thumbnailV2/1df9ff6b3481420ea192de6aa1d5c3ed.jpg/dims/resize/178/optimize)
![[INTERVIEW] How AmazeVR revolutionizes aespa's LYNK-POP concert](https://img.koreatimes.co.kr/upload/thumbnailV2/4431833759c44bdaa414cb314e90f2fe.jpg/dims/resize/178/optimize)
