Amid Export Boom, SMEs Grapple with Rising Interest Burden

While Ulsan's key industries are enjoying a recovery and boom in performance, regional small and medium-sized enterprises (SMEs) are facing deepening polarization as their overdue loan amounts have surged to record highs. Last year, the total overdue SME loans for five regional banks nationwide, including Gyeongnam Bank, amounted to 1.3649 trillion won. This represents a 75% increase from the previous year and the largest figure recorded since 2012, when such statistics began to be compiled.

Ulsan's flagship industries, automotive and shipbuilding, are spearheading exports, riding an unprecedented wave of prosperity. In January, Ulsan's automotive exports rose 10.8% year-on-year, driven by hybrid vehicle sales. Shipbuilding exports saw a dramatic 118.6% increase compared to the previous year, with the sector's share of the LNG carrier market surpassing 65%.

This widening gap highlights contrasting fortunes: while large corporations have seen improved financial results, the business conditions for mid-sized and smaller enterprises have deteriorated. Professor Lee Yong-joo from the University of Ulsan attributed this disparity to SMEs' lower ability to pass on rising raw material costs to product prices compared to larger companies. The fundamental strength of SMEs has weakened amidst fluctuating domestic and international economic indicators.