South Korean small and medium-sized enterprises face growing succession risks as aging owners struggle to find heirs, threatening jobs, technology and industrial supply chains. An analysis of 1,500 companies that signed agreements with Woori Bank’s Corporate Succession Support Center through the end of August found that 628, or 41.9%, were considering both a third-party sale and succession by their children; including the 2.9% considering only a third-party sale, 44.8% had left open an outside sale, while 44.7% cited succession by children. Owners aged 60 to 69 represented 42.1% of companies, businesses operating for at least 20 years accounted for 60.4%, and 775 firms, or 51.6%, held patents. Manufacturers comprised 476 companies, or 31.7% of all participants. The government plans capital-gains tax relief for employees with at least five years at a company who take it over, but officials and academics say guarantees and acquisition financing are also needed. Woori Bank has completed succession consulting for 269 companies, including 11 valuation and M&A advisory cases. A March fire at auto-parts maker Anjeon Industrial disrupted engine-valve supplies and delayed production of Hyundai Motor’s flagship models, illustrating the wider supply-chain risk.