22% of Small Firms Face Bankruptcy

by dave Mon Dec 22, 2008 10:41 am

By Kim Jae-kyoung
Staff Reporter

In 2008, local small- and medium-sized enterprises (SMEs) have gone through their worst year since the 1997-1998 financial crisis, hit hard by the fallout from the global credit crisis and recession.

However, the worst is yet to come. Even bigger challenges lie ahead in 2009. With the economic slump prolonged and a liquidity squeeze deepening, many of them are now on the verge of falling off the edge of the cliff in the months to come.

Nam Tae-jeong, 36, a salaried worker at a local broadcasting firm, recently visited his parents, who run a small business in Gwang-ju, South Jeolla Province, and was shocked that so many small firms there had shut down.

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