The Federation of Middle Market Enterprises of Korea described the government's third basic plan for promoting the growth of mid-sized companies as a "forward-looking and concrete comprehensive policy package."
Choi Jin-sik, chairman of the federation, issued a commentary on the 1st on the plan announced by the Ministry of Trade, Industry and Energy, titled "Third Basic Plan for Promoting the Growth of Mid-Sized Enterprises: Growth Ladder 2030 for Mid-Sized Companies." Choi said the plan "brings together short-term measures as well as strategies for the growth of mid-sized companies and for strengthening competitiveness across industry, and is the fruit of continuous communication between the government and businesses that has carried on without interruption, centered on the ministry."
Choi went on to say that "the policy goals of raising the revenue share of mid-sized companies from the current 15% to 30% by 2030, increasing the proportion of 'anchor' mid-sized firms with proprietary technological capabilities from 32% to 40%, and lifting the share of mid-sized companies outside the Seoul metropolitan area from 36% to 50% are highly desirable in terms of strengthening the fundamentals of industry." He also gave a positive assessment of the "Deca-Core Project," an industry-academia-research initiative that will invest 1 trillion won to secure 10 game-changing system technologies.
Choi placed particular emphasis on the plan's treatment of structural barriers to expansion. "For the first time in a basic plan, the government has clearly identified the structural factors under which regulation increases and support decreases as companies grow, and has decided to redesign systems that work against growth, including easing regulations on a tiered basis according to company size and overhauling rules built on a binary division between large and small businesses," he said. "This is an important starting point for substantively easing the 'growth paradox.'" He added that "wisdom from all quarters must be gathered to create a growth-friendly environment."
The basic plan for promoting the growth of mid-sized companies is a policy road map drawn up every five years under Article 5 of the Act on Special Measures for the Promotion of Mid-Sized Enterprises. The third plan announced this time covers the fostering of "anchor" mid-sized companies that hold proprietary technology and intellectual property, support tailored to each stage of development for prospective, early-stage and leading mid-sized firms, and an expansion of the base of mid-sized companies in the regions.
"Mid-sized companies are both prime contractors and suppliers across every industry, and a bridge for growth that connects smaller firms with large corporations," Choi said. "We will communicate even more closely with the government and the National Assembly so that this basic plan can build significant momentum for the growth of mid-sized companies."
