Problems for small businesses

Chuseok is normally an important time for Korean businesses, much as Christmas is important for North American businesses. This Chuseok was a bad time for Korean small businesses and there has been much in the papers about small businesses defaulting on their loans. The papers, and local wisdom hold that the poor economy is what's harming the businesses.

I have a different explanation, but I cannot back it up with articles or examples. I, and any foreigner who spends a few months here, will see new businesses appear and disappear regularly. I do not understand exactly what a 'feasibility study' is, but I would take the effort to find out and perform one before starting a business of my own. Koreans seem to test by doing; starting a business without any real consideration of demand or location or other vendors of the same product or service nearby.

Another problem seems to be trying the make a place seem successful. Here is the president's office of an English school I worked at that went bankrupt after a few months. No, I am not the president, I just wanted to pose.

Posing in the president's office.

This seems pretty luxurious for a company that couldn't pay rent!

Foreclose on the businesses or not, what they really need is some sense and education about how to actually run a business.