Appeal for Private Sector Participation in Institutional Improvement as Innovation Drivers
[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Medium-Sized Enterprises (KOFME) announced on the 13th that Chairman Choi Jin-sik appealed to representatives of medium-sized enterprises nationwide to join in institutional improvements for a private sector-led growth paradigm shift.
According to KOFME, Chairman Choi sent a letter on the 12th to representatives of 3,329 medium-sized enterprises, requesting active participation from innovative medium-sized companies with accumulated successful know-how to effectively respond to the challenges of the 4th Industrial Revolution and the post-COVID-19 era.
A KOFME official explained, "Among 5,526 medium-sized enterprises, the recipients were limited to representatives of 3,329 medium-sized enterprises who have received certification, including member companies," adding, "We will use various communication methods to spread this message to all medium-sized enterprises."
Chairman Choi stated, "We must improve all laws and systems to the level of the average of the top 10 OECD countries, reflecting the status of an advanced country recognized by the United Nations Conference on Trade and Development," and added, "Although there may be parts unfavorable to companies, this is the path we must take, a shortcut to reducing social conflicts and restoring the economy."
He continued, "There is no doubt that companies are the core of national competitiveness in the global era, and companies are the center of the economy, the best welfare, and the foundation of life, producing good jobs," and said, "Medium-sized enterprises are the backbone of the industrial ecosystem and the key group of companies to restore the growth ladder."
Chairman Choi emphasized that restoring the growth ladder of our economy is the mission of medium-sized enterprises, saying, "In an era of all-around connectivity, solidarity and cooperation are basic conditions for growth, a lesson we must not forget from the pandemic." He also said, "The task of uplifting early-stage medium-sized enterprises that may stagnate due to lack of capital and networks and integrating the future of innovative venture companies as new growth engines of medium-sized enterprises is the mission of medium-sized enterprises and the foundation for the growth of global specialized companies," appealing, "Please join us in this very natural task of creating respected entrepreneurs, just like respected educators and athletes."
Chairman Choi pointed to the sunset of the Medium-Sized Enterprises Special Act in July 2024 as the biggest issue facing the medium-sized enterprise sector and requested active efforts to convert the special act into a permanent law. He said, "If the special act expires and the criteria for medium-sized enterprises under the Restriction of Special Taxation Act disappear, the tax burden will sharply increase to a level equivalent to about a 5% increase in corporate tax, and we will face the bleak situation before 2013 when we had to bear the same regulatory burden as large corporations," adding, "The purpose of the medium-sized enterprise sector, which aims for economic growth as a precious value to be protected, is clear, and the existence of numerous medium-sized enterprises that are number one in Korea and also number one in the world is a clear basis. Therefore, all medium-sized enterprise members are urged to actively support and participate."
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