Small Business Owners Grapple with Rising Debt Outpacing Revenue Growth

A recent study has revealed that the debt of small business owners has increased more than their revenue on average.

The Small and Medium Business Administration conducted a regular survey in 2022 targeting 65,000 small business enterprises. According to the results, the average annual revenue per business was 234 million won (US$180,416), marking an increase of 9 million won from the previous year, representing 4% growth.

However, the average debt per business stood at 185 million won, showing an increase of 11 million won from the previous year, indicating 6.1% growth.

The average annual operating profit per business amounted to 31 million won, marking an increase of 10.1%, or 3 million won, compared to the previous year.

While the number of businesses increased by 0.2%, or 7,000, to a total of 4,125,000, the number of employees decreased by 0.9%, or 61,000, to 7,143,000 compared to the previous year.