Mid-sized Business Sector Urges Increased Support for Competitive Mid-sized Companies in Second Half Economic Policy Direction

Mid-sized Companies' Opinions on Economic Policy Directions for the Second Half of the Year

The mid-sized enterprise sector stated on the 4th that it agrees with the government's recognition of the second half economic policy direction, which aims to achieve "results that the public can feel," by balancing the resolution of current issues and strategies to strengthen the economic structure in the mid to long term.

The Korea Federation of Mid-sized Enterprises (KFME) issued a commentary on the day, evaluating that "the decision to reexamine the R&D budget of 31 trillion won from a zero base is a groundbreaking turning point for improving the industrial structure and strengthening national competitiveness, and a key task that will determine the success or failure of the economic policy direction." KFME added, "For the firm stabilization of the economic system, not only national R&D but also the validity and effectiveness of various policies, including environmental and labor regulations that increase the burden on corporate management, must also be reviewed from a zero base level to initiate bold and progressive improvements."

Choi Jin-sik, Chairman of the Korea Federation of SMEs

Additionally, KFME stated that the three major performance-centered tasks of 'revitalizing the economy,' 'stabilizing people’s livelihoods,' and 'improving the economic structure' are very desirable as urgent remedies to overcome the current crisis by alleviating the anxieties of economic actors including companies and boosting their confidence. They added, "To enhance the effectiveness of export promotion policies such as the record-high 184 trillion won trade finance, the threshold for support targets must be significantly lowered to actively attract participation from mid-sized enterprises with global competitiveness."

KFME argued, "While the current direction to revitalize corporate succession, such as extending the installment payment period for gift tax, which is only five years, and expanding the special low tax rate limit, is desirable, more bold implementation measures should follow to increase policy effectiveness, such as significantly extending the installment payment period up to 20 years, the same as inheritance tax."

KFME further stated, "We will actively fulfill our given responsibilities as the ‘backbone’ of the economy through bold innovation investment, creation of quality jobs, and pioneering overseas markets to resolve export sluggishness and supply chain instability."

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