Dec. 22 (Asia Today) -- About seven in 10 South Korean small and medium-sized enterprises said they faced shrinking domestic demand and intensifying cost pressures this year, according to a survey released Monday by the Mainbiz Association.
The survey of 351 Mainbiz member companies found 71.8% cited weak domestic demand as a key management challenge in 2025, while 61.5% pointed to rising costs, indicating simultaneous pressure from softer sales and higher expenses, the association said.
More than half of respondents reported sales declined or remained flat, the association said, adding that many companies focused on short-term, conservative measures such as cutting costs and defending existing markets.
Looking to 2026, the most common outlook, cited by 39.9% of respondents, was that economic conditions would be similar to this year, the association said. Technology-based sectors and mid-to-large firms were relatively more optimistic, while domestic service industries and smaller businesses were more pessimistic.
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