SEOUL, KOREA - As the won value continues to strengthen against major currencies, more and more small- and medium-sized enterprises are feeling the pinch. The Korea Federation of SMEs said on October 2 that 69.3 percent of small- and medium-sized exporters responded that the current exchange rate movements hurt their profitability. The results were based on a survey on 75 companies for nine days between September 22 and 30.

 

By industrial sector, 60 percent of those engaged in metal and steel industries said the currency appreciation has impacted their business negatively, followed by electric and electronics (41.7%), textiles and apparel (40.0%), and machinery (38.1%). Meanwhile, the ratio of those firms that answered the currency change has not affected their business was 22.7 percent. Those firms that benefited from the strengthening won were 8.0 percent.

 

The break-even exchange rates that small- and medium-sized companies hoped for were 1,014.15 won for 100 yen and 1,063.26 won for the U.S. dollar. The policy measures that the firms wanted the government to take included exchange rate stabilization (86.7%), expanded guarantees in trade and financing deals (78.7%), and extended application of currency change insurance schemes (17.3%).