SEOUL, KOREA – The Korea Small Business Institute (KSBI) predicted that Korea’s economic growth would reach 3.1 percent next year, a level below the nation’s potential economic growth rate.

KSBI also stressed that the slow pace of economic recovery would make it difficult for any visible improvement in the business environment surrounding small- and medium-sized enterprises.

 

KSBI also noted that the capacity utilization ratios of the nation’s small- and medium-sized manufacturers are unlikely to make a sharp improvement next year due to the slowing recovery of the global economy, plus a string of adverse factors in and outside the country.

 

In particular, it would be difficult for SMEs to expand exports next year due to unfavorable foreign exchange movements plus the increasing difficulty in procuring new investment funds. With the sluggish real estate market and the growing household debts, the business environments surrounding SMEs would become gloomier next year.