Korea’s Small Exporters Suffering

Amid ongoing economic shocks, including the strong won and rising oil and commodity prices, more than 30 percent of Korea’s small and medium-sized export companies posted operating deficits in the first half of this year.

The Ministry of Commerce, Industry and Energy said yesterday that the Korea Export Insurance Corporation’s analysis on financial statements of 650 small businesses that exported products every year over the past four years revealed that 211, or 32.5 percent, posted operating losses in the first half.

Meanwhile, the ministry held a meeting with delegates from some 30 export companies and export-related organizations at the Korea International Trade Association in Seoul on the same day to discuss emergency foreign exchange support for them.

The ministry has decided that it will not collect exchange gains from smaller businesses that export less than $1-million worth of goods annually if they purchase foreign exchange insurance.

jarrett@donga.com