"Only 16% Feel the Shift to SME-Focused Corporate Development Policies"

Gyeongcheong Foundation, Korea Gallup Commissioned Nationwide Survey of 1,000 SMEs

Perception of the shift in corporate development policies focusing on small and medium-sized enterprises. Photo by Foundation Kyungcheong

[Asia Economy Reporter Moon Hyewon] Although the government is promoting various policies to foster and strengthen the competitiveness of small and medium-sized enterprises (SMEs), only 16% of SMEs feel that the direction of corporate development policies has shifted to focus on SMEs, according to a recent survey.

On the 23rd, according to the Kyungcheong Foundation, a survey commissioned to the research firm Korea Gallup was conducted targeting 1,000 SMEs nationwide with annual sales of over 100 million KRW. The survey found that 40.5% of SMEs responded that they did not feel the current government's corporate development policy direction had shifted toward SMEs.

When asked whether they felt the direction of the current government's corporate development policy was shifting from large corporations to SMEs, the negative response ("No") at 40.5% was higher than the positive response ("Yes") at 16.0%.

By industry, the perception was lowest in "manufacturing," "transportation and warehousing," and "arts, sports, and leisure-related services." The perception was relatively higher in "accommodation and food services."

Regarding satisfaction with SME fostering and support policies over the past 10 years, dissatisfaction (29.8%) was more than twice as high as satisfaction (14.4%). The neutral response ("average") accounted for the highest proportion at 55.8%.

In terms of policy satisfaction, "associations, organizations, repair, and other services" and "arts, sports, and leisure-related services" showed low satisfaction, whereas "wholesale and retail trade" and "educational services" showed relatively higher satisfaction.

When asked about the support areas needed to foster SMEs, demand for "financial support" (5.6 points) was the highest, followed by "technology development and commercialization support" (4.1 points), "marketing activity support" (4.0 points), "excellent workforce training" (3.1 points), "legal support" (2.9 points), and "overseas expansion support" (1.4 points).

Regarding the legislative efforts for SME fostering during the 20th National Assembly, 34.8% evaluated that "there was no effort," which was higher than the 11.1% who said "there was effort," while 54.1% responded neutrally, withholding judgment.

Attorney Lee Minju of the Kyungcheong Foundation, which commissioned the survey, stated, "Given that SMEs generally have a negative evaluation of the current government and the 20th National Assembly’s SME policies and legislative efforts, a reassessment of the direction of policies and legislation for SMEs is necessary."

Meanwhile, this survey was conducted over about 40 days from June 15 to July 24. The sampling error is ±3.1 percentage points at a 95% confidence level.