"Permanent Law Transition for the Special Act on Mid-sized Enterprises, Aiming for National Assembly Approval in the First Half of This Year"

Regular General Meeting of the Korea Federation of Medium-sized Enterprises Held on the 21st

[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Medium-sized Enterprises (KOFOME) has declared this year as the inaugural year for establishing a stable legal and institutional foundation for nurturing medium-sized enterprises. Choi Jin-sik, chairman of KOFOME, stated at the '2023 General Assembly' on the 21st, "We will definitely convert the Medium-sized Enterprises Special Act into a permanent law in the first half of the year, and in the second half, we will accelerate a comprehensive revision to significantly enhance the effectiveness of policies for fostering and supporting medium-sized enterprises."

Chairman Choi added, "Despite broad bipartisan consensus on the economic and social value and role of medium-sized enterprises, the amendment bill to the Special Act, including the deletion of temporary provisions, remains stalled in the National Assembly," and said, "We will communicate more actively to raise understanding among the government, National Assembly, academia, and civil society about the confirmed status of medium-sized enterprises."

At the "2023 Korea Association of Mid-sized Enterprises General Assembly," Chairman Choi Jin-sik is delivering the opening address.

The policy to nurture medium-sized enterprises, which started in 2010 as the 'Global Specialized Enterprise Development Strategy,' has evolved over more than a decade through various policies and systems, accelerating after the establishment of a dedicated government organization in 2012 and the enforcement of the Special Act in July 2014. However, concerns about the instability of the Special Act as a temporary law set to expire in July next year have been continuously raised. A KOFOME official stated, "Since April last year, we have been conducting joint research with the Ministry of Trade, Industry and Energy to amend the Medium-sized Enterprises Special Act," adding, "Based on in-depth discussions with academia and the private sector, we will strengthen the justification of the existing Special Act and bring about tangible changes at the field level as a legal foundation for sustainable growth."

Chairman Choi said, "Although medium-sized enterprises account for only 1.4% of all companies in South Korea, they handle more than 15% of sales, employment, and exports in the Korean economy. Beyond the enormous economic effects and social contributions they generate, we will do our utmost to expand and strengthen the role of medium-sized enterprises as key economic actors who, facing domestic and international challenges, will revolutionize the paradigm of South Korea’s economic and industrial development."

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