[Reporter’s Notebook] Proliferation of Policies for Fostering Mid-Sized and Small Businesses

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy is launching a 'Lighthouse Project' to foster mid-sized companies, the 'backbone' of our economy. By 2024, the government plans to identify 100 exemplary mid-sized companies as models of corporate innovation and actively support them in business restructuring, overseas market expansion, and digital transformation. The intention to nurture 100 promising companies that other firms can benchmark, like a lighthouse illuminating the way in the dark sea, is positive.

However, it is hard to shake the impression that the policy presented by the Ministry of Trade, Industry and Energy this time feels familiar. It does not seem much different from the small and medium-sized enterprise (SME) support measures that various ministries are releasing competitively. Unicorn companies valued at over 1 trillion won, regional innovation SMEs, lighthouse companies?each ministry is putting forward different 'signboards' but offering similar mid-sized and SME support policies. Although the Ministry focuses on mid-sized companies, the core elements such as business restructuring, overseas expansion, investment, tax, and financial support are not different.

The signboard may look good, but the problem lies in the effectiveness of the policy. A mid-sized company employee pointed out, "The government is releasing various policies indiscriminately, but the effective implementation is questionable," adding, "Rather than announcing policies, inter-ministerial cooperation is needed to enhance the effectiveness of policies tailored to different corporate groups." The message is not to just introduce new policies but to efficiently utilize existing systems.

Recently, the Organisation for Economic Co-operation and Development (OECD) also pointed out that the Korean government needs to evaluate the resources and effectiveness of corporate support and simplify the complex support system of over 100 programs to improve effectiveness.

According to a survey by the Federation of Korean Industries, 82.2% of mid-sized companies expressed 'strong dissatisfaction' with the government's and National Assembly's tightening of corporate regulations. Attaching fancy names to policies released annually and promoting them is not fostering mid-sized and small businesses. The government should reconsider that the key to becoming a strong nation of mid-sized and SMEs lies not in superficial support measures but in effective implementation of existing policies and removing major obstacles that hinder corporate activities.

This content was produced with the assistance of AI translation services.