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Rising commodity prices prompt "cut" demands...small business 'emergency'

The so-called ''triple bottom line'' of high interest rates, exchange rates, and oil prices, triggered by external variables, is causing companies to prepare for contingency management.

Small and medium-sized enterprises (SMEs), which are often less able to respond to crises than larger organizations, are struggling with this rapid change in the business environment.

You are a small business that exports equipment that reduces noise and vibration in buildings.

The company buys steel products from China in dollars, and when the Korean won-dollar exchange rate hit 1,400 won intraday on the 16th, it became an emergency.

It's not just atomic values you need to worry about.

International customers have been asking for discounts on delivery prices due to the strong dollar.

[Yoon Eun-joong/representative of a company specializing in dust and soundproofing equipment: "Even though the price of raw materials has gone up, we don't get a raise when exporting, so (profit margins) should be around 5%, but they have dropped to 3%."]

One in three small businesses cited rising commodity prices as a business challenge last month, with interest rates, oil prices, and even currency exchange rates feeling the impact.

Article link:https://news.kbs.co.kr/news/pc/view/view.do?ncd=7943406

Video link:https://youtu.be/mMaTQbY1g04?si=NgaakypZTV_FTu5f