Junggyeonryeon Launches 'Mid-sized Enterprise Innovation Growth Policy Forum'

Seeking Paradigm Shift to Growth Centered on Mid-sized Enterprises

Chairman Choi Jin-sik

[Asia Economy Reporter Kim Cheol-hyun] A private-led policy innovation platform seeking an industrial strategy shift centered on mid-sized companies as a stepping stone for economic recovery in the post-COVID era is set to be fully launched.

The Korea Federation of Mid-sized Enterprises (KFME) announced on the 20th that it held the launch ceremony of the 'Mid-sized Enterprise Innovation Growth Policy Forum' jointly with the Korea Association of Mid-sized Enterprises. Choi Jin-sik, chairman of KFME, said in his opening remarks, "By clearly acknowledging the achievements and limitations of the growth strategies that have driven the South Korean economy, a new growth hub suitable for the changed era will be established," adding, "We must hasten the policy paradigm shift centered on mid-sized enterprises, which are the number one or main players in most industries and the core of industrial innovation, rather than focusing on small and large enterprises."

At this launch ceremony, Kwon Jong-ho, chairman of the Korea Association of Mid-sized Enterprises, gave a presentation titled 'Seeking a New Paradigm for Mid-sized Enterprise Policy in the Early 21st Century Hyper-Competitive Era.' Through this, he emphasized, "It is necessary to discover future industries centered on mid-sized enterprises and nurture them into top-tier global specialized companies," adding, "Especially, to break the winner-takes-all structure where first movers gain all the benefits and to secure the lead in developing new technologies and products, it is essential to boldly abolish regulations related to research and development and implement focused, continuous, and strategic support policies."

Minister of Trade, Industry and Energy Moon Seung-wook, who attended the event, stated, "Mid-sized enterprises are the backbone of our economy with high growth potential and solid competitiveness, and the key driving force for future growth," adding, "To enable mid-sized enterprises to smoothly grow into global specialized companies, wisdom from all sectors, including the mid-sized enterprise community, government, and National Assembly, must be gathered to establish a more stable and effective legal and institutional environment."

In response, Chairman Choi also said, "To establish 2022, the first year of the post-COVID era, as the starting point for South Korea's economic leap forward, a policy shift that drives innovation and growth of companies, the core economic agents, is urgently needed," adding, "While continuously pursuing the creation of a legal and institutional environment at the level of OECD advanced countries as a mid- to long-term task, unreasonable regulations must be quickly resolved, and the effectiveness of national R&D support policies based on growth capabilities must be enhanced, accelerating overall improvements in support policies for mid-sized enterprises."

Chairman Choi continued, "Considering the proven innovation capabilities accumulated over a long history, placing mid-sized enterprises at the center of a new economic growth strategy is a definite measure to lay the foundation for South Korea's future economy," adding, "As the top priority for the mid-sized enterprise sector, we will closely communicate with all sectors to convert the Mid-sized Enterprise Special Act, which is set to expire in July 2024, into a permanent law and strengthen the institutional foundation for mid-sized enterprise development policies."