Operating ratio of small and medium-sized business continues 6-month fall

The operating ratio of small and medium-sized business last December has showed a six-month consecutive new low.

According to a survey on the 1,200 members of the Korea Federation of Small and Medium Business, the operating ratio of small and medium-sized business in December 2000 stood at 73.8 percent down 0.7 percentage point compared with the previous month, and down 3.6 points year on year.

In particular, the capacity utilization in the apparel, fur, textiles, rubber and plastics industries has fallen much lower compared with the previous month.

The reason of low capacity utilization is reported to stem from diminishing domestic demand owing to slump (54.3 percent), seasonal factor (11.8 percent), reduced orders from parent companies (10.1 percent), and over-competition (8.0 percent).

Jung Wi-Yong viyonz@donga.com