Increase the Number of Mid-sized Companies to 10,000 by 2030... Export Target of 200 Billion USD

New Government Announces 'Growth Promotion Strategy for Mid-sized Companies'

[Asia Economy Reporter Kim Cheol-hyun] A new government vision for the mid- to long-term development of mid-sized enterprises aiming to reach 10,000 companies and $200 billion in exports by 2030 has been announced. Mid-sized enterprises, which are the backbone of our industry and are neither small nor large companies, numbered 5,480 as of last year’s data, achieving exports of $113.8 billion.

The Ministry of Trade, Industry and Energy (Minister Lee Chang-yang) announced the 'Mid-sized Enterprise Growth Promotion Strategy' on the 16th, outlining these details. The first key policy direction is to foster a leading group of companies that will play a central role in carrying out four missions within the industrial ecosystem: ▲global market entry ▲supply chain stabilization ▲response to digital transformation ▲building a growth ladder from small to mid-sized enterprises. To this end, by 2033, the ministry plans to invest 1.5 trillion KRW in technology development funds focused on the '15 core industries for mid-sized enterprises,' such as semiconductors, secondary batteries, and advanced bio, supporting 100 to 150 leading companies intensively by sector.

A support track will also be operated to accelerate the entry of promising small enterprises within the 15 core industries into mid-sized enterprises. To this end, the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups will annually select 100 'high-growth innovative companies,' totaling 1,000 companies, and provide integrated package support for R&D, exports, and manpower through their respective programs.

Additionally, to help mid-sized enterprises overcome growth stagnation and achieve sustainable growth based on new businesses and technologies, a support system will be established to encourage voluntary innovation and challenges across all stages, including new business discovery, technology acquisition, and securing investment and funding. In particular, to actively utilize private growth capital, a 'Mid-sized Enterprise Leap Support Fund' totaling 1 trillion KRW will be established by 2027. For this purpose, the first fund worth 100 billion KRW will be launched in the first half of this year through investment in the Industrial Technology Innovation Fund.

To create a foundation that promotes the growth of mid-sized enterprises, the currently temporary 'Mid-sized Enterprise Special Act' will be converted into a permanent law to ensure legal stability and discover new support exceptions. For areas where support is excessively reduced as companies grow from small to mid-sized enterprises, opinions from companies will be collected and improvement plans will be discussed with relevant ministries. To realize the mid-sized enterprise sector’s announced investment plan of 160 trillion KRW over the next five years, a 'Mid-sized Enterprise Investment Difficulty Task Force' will also be operated to resolve difficulties tailored to companies.

Deputy Minister Park Il-jun stated, "As the backbone of our industry, mid-sized enterprises must play a pivotal role in overcoming the crises facing our economy and achieving a new leap forward," adding, "Mid-sized enterprises have the potential to enter the global market based on world-class technological competitiveness, and will become the vanguard leading exports in the future."

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