IBK Industrial Bank of Korea released its 2026 Small and Medium Enterprise Financial Status Survey on the 29th, revealing that one in four domestic SMEs expects business conditions to worsen next year compared to this year. The survey found 25.7% of respondents anticipate deteriorating conditions, a 10.9 percentage point increase from 14.8% in the previous year's survey. This pessimistic outlook reflects growing concerns among small and medium enterprises amid domestic and external economic uncertainties, with the proportion expecting stable conditions dropping from 72.8% to 56.1% year-over-year.
Survey Shows Rising Pessimism Among SMEs
According to the 2026 Small and Medium Enterprise Financial Status Survey, 56.1% of respondents expect next year's business conditions to remain the same as this year, down 16.7 percentage points from last year's 72.8%. Meanwhile, 18.2% anticipate improvement, representing a 5.7 percentage point increase.
For the second half of this year, 72.8% of SMEs expect business conditions to remain unchanged from last year. Reflecting on last year's actual performance, 33.0% of small and medium enterprises reported poor business conditions, significantly exceeding the 18.0% who experienced improvement.
![Survey results showing SME business outlook]()
Source: 2026 Small and Medium Enterprise Financial Status Survey
Funding Needs Expectations Diverge
The proportion of companies expecting increased funding needs next year reached 13.1%, nearly double the 6.6% recorded last year. Conversely, 29.3% of enterprises anticipate decreased funding requirements, up from 22.1% in the previous survey.
The share of companies expecting funding needs to remain the same dropped 13.7 percentage points from 71.3% to 57.6%.
IBK Surveys 4,500 SMEs on Financial Status
IBK Industrial Bank conducted the survey targeting 4,500 small and medium enterprises with annual revenue exceeding 500 million won, based on the corporate statistics registry. The survey aimed to understand SME funding procurement, business conditions, and future economic outlook.
Bank Pledges Tailored Support Services
An IBK official stated that management difficulties for small and medium enterprises are expected to continue for the time being due to domestic and external uncertainties. The official added that the bank will actively provide customized financial and non-financial services to help SMEs overcome crises and establish a foundation for growth.
FAQ
What percentage of Korean SMEs expect business conditions to worsen next year?
According to IBK Industrial Bank's 2026 survey released on the 29th, 25.7% of domestic small and medium enterprises expect business conditions to deteriorate next year compared to this year, representing a 10.9 percentage point increase from 14.8% in the previous year.
How have SME funding needs expectations changed?
The survey found that 13.1% of companies expect increased funding needs next year, nearly double the 6.6% from last year. Additionally, 29.3% anticipate decreased funding requirements, up from 22.1%, while those expecting unchanged needs dropped from 71.3% to 57.6%.
