The South Korean government has attempted to remedy the problem but its roots are deep: the country’s powerful conglomerates and offshore competition are squeezing smaller employers, the Financial Times reported. “Although SMEs account for a small portion of the country’s GDP, their trouble has a big impact on the job market and consumption,” said Lee Sang-jae, an economist at Eugene Investment and Securities. Chinese competition is hollowing out vast tracts of industry that once girded South Korea’s export-led economy.
South Korean has announced a fresh set of measures to boost economic growth and create jobs by offering financial support for smaller companies and a fuel tax cut to spur consumption. The latest measures come as the administration of President Moon Jae-in comes under growing pressure to revitalise a stalled economy and weak jobs market, the Financial Times reported.